NEW VENTURE CAPITAL FUND OPEN FOR BUSINESS

Thursday 23 April 2009

Invest Northern Ireland today announced that a new suite of initiatives to support start-up and early stage businesses in Northern Ireland will be open for applications from 1 May. The support includes a £5 million venture fund element to focus on seed and early stage businesses, typically investing from £50,000 to £250,000. A £3 million proof of concept fund will provide funding to very early, non-university projects.

In addition, this initiative will assist young companies through investment readiness support, incorporating showcasing events, in-depth mentoring and guidance on intellectual property exploitation.

Announcing the support services, Alastair Hamilton, Invest NI’s Chief Executive, said:

"While many companies are currently preoccupied with the debilitating effects of the recession, it is important that we continue to put in place the foundations for future growth in our economy. The initiatives announced today will enable us to harness the knowledge and expertise from our businesses, universities and the community.

"Whilst many of the sectors we are hoping to develop, such as information technology, communications and life sciences offer high rewards, not all investments will succeed. Historically, market forces alone have not been sufficiently strong to allow technology investment in Northern Ireland to catch up with the rest of the UK. There remains a strong case for the need for public sector intervention in this regard.

"These initiatives will also bring a number of broader benefits to the local economy, including an increased volume of projects, a greater awareness of venture capital, and an increase in entrepreneurship and innovation."

Invest NI has appointed E-Synergy to provide this support for early stage companies including the management of the funds. E-Synergy will work closely with potential private investors, including members of the Halo business angel network, to ensure that the required private, matched funding is made available for seed and early stage companies.

Richard Brook, Director of E-Synergy, said: "We are delighted to have won the contract to manage Invest NI’s suite of support initiatives for early stage companies. We look forward to working with entrepreneurs across the region to make their business vision a commercial reality. We believe that an integrated approach to support for early stage enterprises is vital."

ENDS

Notes to Editors

The funding element of this initiative will be made up of a £5M venture capital element, providing equity in the £50k-£250k deal size range and requiring 30% matched, private sector funding. The fund is expected to make 25 investments at an average of £200,000 over a five year period. Whilst the Fund will have a technology focus, its remit will be wider including life sciences, digital content, media and other manufacturing and tradeable services sectors in NI.

Click here to see the latest information about the invest growth fund

There will also be a £3M proof of concept grant fund for non-university projects. The POC fund will offer around 60 grants averaging £50k to non-university projects.

Investment Readiness training, IP Advice and company mentoring and support are all intrinsic elements of the manager’s package of support for early stage companies.

About E-Synergy

E-Synergy is a London-based, independent company focused on early stage investment in technology- based companies. E-Synergy has grown steadily and is now seen as being one of the foremost managers operating in this specialized area.

E-Synergy currently manages a range of early stage funds including a £5m regional early growth fund for the East Midlands Development Agency, a £2m proof of concept 'Emerald Fund' and a £5m national early growth fund for England and Wales.

Invest Northern Ireland

Invest Northern Ireland works with individuals, companies and organisations in manufacturing and tradable services which show the ambition and commitment to grow by being more innovative, more entrepreneurial and more internationally focused.

Invest NI’s resources are focused on assisting our clients to improve competitiveness, increase innovation, promote a stronger international focus and create more positive attitudes to enterprise.

Invest NI’s full range of support and services are delivered through local offices in Belfast, Coleraine, Ballymena, Craigavon, Londonderry, Newry, Enniskillen and Omagh, and an international office network.

For more information please contact Invest NI Press Office, Bedford Square, Bedford Street, Belfast, BT2 7ES. Telephone 028 9069 8036.