A new £125m VC fund for companies in the North East of England has been announced which will target early stage companies, including a focus on technology related startups.
The JEREMIE Fund ((Joint European Resources for Micro to Medium Enterprises Initiative) as it will be provisionally known, is a combined effort between The European Investment Bank (£62.5m) and the European Regional Development Fund 2007-2013 and One North East (£62.5m), with the aim of creating thousands of new jobs in the region. The new fund is expected to support over 850 small and medium-sized companies over the next five years.
It will be managed by a number of established venture capital firms in the region – North Star Equity Investors, NEL Fund Managers and the Finance Tree – along with E-Synergy (IP Group) and Finance Wales Investments, which is opening its own North East office.
To be eligible to apply, companies will need to be an SME, be located in the North East, and put forward a “viable business proposition with ability to make returns to the fund.”
Initially, investments are being split into six categories, two of which explicitly target technology startups:
Angel Match Fund
Investments between £50k and £150k
Total fund size £7,500,000.
Technology Proof of Concept Fund
Investments between £20k and £100k, but it will have the ability to complete follow-on investments above this level.
Total fund size £15,000,000
Growth Fund
Investments of between £50k and £400k, with the maximum investment into any one company being limited to £400k per year and to 5% of the total fund size in aggregate.
Total fund size £20,000,000
Seed Fund
Investments of between £50k and £750k, with the maximum investment into any one company being limited to £750k per year and to 10% of the total fund size in aggregate.
Total fund size £20,000,000
Technology Fund
Investments of between £50k and £1.25m, with the maximum investment into any one company being limited to £1.25m per year and to 10% of the total fund size in aggregate.
Total fund size £25,000,000
Growth Fund 500
Investments of between £350k and £1.25m, with the maximum investment into any one company being limited to £1.25m per year and to 10% of the total fund size in aggregate
Total fund size £20,000,000