£8M FUND FOR NEW BUSINESSES LAUNCHED IN NORTHERN IRELAND

July 2009

Minister of Finance, Sammy Wilson, today officially launched a new £8 million suite of initiatives to support start-ups and early stage businesses in Northern Ireland.

Speaking at the formal launch of the NISPO initiative in Parliament Buildings, the Minister said: "Promoting a stronger enterprise culture in Northern Ireland is a key component of our Programme for Government. We recognise that a strong knowledge-based economy requires skills across a broad range of business activities, with particular emphasis on the commercialisation of new ideas, products and services. The ability to fund innovation and move towards commercialisation is key."

The NISPO initiative includes a £5 million venture capital fund which will focus on seed and early stage businesses which have high growth potential. Investments by the fund will typically be in the £50,000 to £250,000 deal size range. A £3 million proof of concept fund has also been established to provide funding to very early, non university projects. An important element of the initiative is an "Enterprise Escalator" to assist promoters move from research to readiness for commercial funding and early stage capital.

The Minister said: "If young, technology companies are to achieve their full potential they must quickly develop skills in raising private equity, dealing with private investors, and structure their management teams for growth. The support of an experienced fund manager as investor and mentor can be invaluable."

"Science and technology are changing our world at a faster rate than ever before. Our universities and local companies have demonstrated that they can provide world class research. The trick for those of us, in government, is to help companies to convert this research into commercial applications which can in turn help to build world class companies, with high salaried jobs here in NI."

Following a competitive tender process, E-Synergy, a London-based firm has been selected to manage the NISPO suite of funds and services on behalf of Invest NI.

The Minister concluded: "E-Synergy will join with our existing venture capital providers, Crescent Capital, Clarendon Fund Managers and Enterprise Equity, and with Halo, Northern Ireland’s business angel network, to increase the provision of private sector-led equity finance to young knowledge-based companies."

ENDS

Notes to Editors

E-Synergy currently manages a range of early stage funds in the UK, 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.