E-Synergy Launches
the Sustainable Technology Fund
01 March 2007
E-Synergy Backs Refrigeration Specialist With First
Investment By Groundbreaking Sustainable Technology ECF
E-Synergy has marked the formal launch of its £30m Sustainable
Technology Fund by announcing its first investment in a British
company that is a world leader in the design and provision
of green refrigeration systems.
The Sustainable Technology Fund has invested £325,000
in Earthcare Products Limited, a profitable and fast-growing
company that is developing and commercialising new natural
refrigerants that can enhance energy efficiency and exceed
tightening global regulations on emissions.
Andrew Stevenson, chief executive of E-Synergy, said: “Sustainable
cooling technology issues affect a large part of industry,
from food production to supermarkets and through many stages
of the supply chain. As the pressures on environmental resources
increase there will be many good opportunities for Earthcare’s
innovative technologies.”
Nicholas Cox, managing director of Earthcare Products, said
he was delighted the Sustainable Technology Fund invested in
the company at an important time in its development.
“Earthcare has had four successive years of profitable
growth but the reason this is the right time to invest is that
we now have patentable IP, developed through our work with
the Odessa Academy of Refrigeration, which will open up a number
of unique opportunities.
“The funding will enable us to complete our work on
high efficiency refrigeration to achieve significant reductions
in direct greenhouse gas emissions and energy consumption and
then to see our leading technology taken up by refrigeration
and air conditioning manufacturers in countries such as China.”
News of the first funding was released as E-Synergy hosted
an event at Tower Bridge to launch the Sustainable Technology
Fund to an audience of private and corporate investors, venture
capitalists, entrepreneurs and intermediaries. Speakers at
the event included Jon Moulton, founder of Alchemy Partners
and a major E-Synergy investor, and David Quysner, chairman
of the Capital for Enterprise Board.
The Sustainable Technology Fund is one of the new funds set
up under the Government’s flagship Enterprise Capital
Fund (ECF) initiative that seeks to promote innovation, jobs
and growth in the UK.
ECFs use private investor backing and expertise leveraged
with public funds to help companies bridge the ‘equity
gap’ – the problem businesses have raising funding
of between £250,000 and £2m which are sums typically
too small for venture capitalists but too large for friends,
family or personal contacts.
E-Synergy was chosen by the Department of Trade and Industry
to manage the ECF because of its strong private investor base
and contacts in the wider investment community, its close links
with the UK research community and its proven track record
in backing and providing business and management support to
growing technology companies.
The Sustainable Technology Fund is the only ECF to focus on
providing investment and expertise to UK companies developing
new, clean and efficient industrial processes. It is targeting
between 15 and 20 investments in companies that can provide
evidence of early sales, accelerated growth prospects and a
credible management team and business plan.
“The UK has an excellent record for coming up with innovative
solutions to global problems and environmental concerns are
fast moving higher up the political and economic agenda,” said
Andrew Stevenson. “The use of energy efficient materials,
clean energy generation, pollution monitoring and raw materials
conservation are all areas with excellent long-term growth
prospects and these companies provide good investment potential
for the Sustainable Technology Fund.”
E-Synergy has provided £10m of the total £30m
funding through its own private investor group and investment
and venture capital industry contacts. The Fund will complement
E-Synergy’s existing pipeline of activity that includes
running its own private investor-backed Early Growth Fund,
management of the East Midlands Early Growth Fund on behalf
of the East Midlands Development Agency, and acting as a co-ordinator
for the Emerald Fund that supports commercial projects based
on research from London’s universities.
E-Synergy also runs Investment Readiness Programmes for universities
and Regional Development Agencies throughout the UK and has
links with the Carbon Trust, AIRTO, Faraday Partnerships, Knowledge
Transfer Networks (KTNs) and the National Endowment for Science,
Technology and the Arts (NESTA).
About the ECF Scheme
Background
Enterprise Capital Funds are designed to be commercial funds,
investing a combination of private and public money in small
high-growth businesses that are seeking up to £2m of
equity finance. The Government provides up to two thirds
of the capital in each ECF, in return for a preferred return
of 4.5%, and a limited share in any profits of the fund.
The preferred return is intended to cover the Government’s
cost of capital. In a longer term programme the profit
share from successful funds should offset any losses on unsuccessful
funds, leading to a broadly cost neutral programme.
Contacts:
Dr Andrew Stevenson E-Synergy 020 7583 3503
Chris Clarke/Carolina Laurijssen Holt PR 020 8334 8355 |