£40m boost for hi-tech businesses
UK hi-tech small and medium-sized enterprises with high growth potential are set to benefit from at least £40 million of investment from a new Enterprise Capital Fund.
Notion Capital, which is backed by private investors, the government and the European Investment Fund, will target businesses delivering internet-based services, including cloud computing and software as a service (SaaS) companies.
Launching the fund on 17 April, Business and Enterprise Minister Mark Prisk said: “It is absolutely vital that ambitious small firms can access the finance they need to expand and grow, and this new Enterprise Capital Fund will provide at least £40 million of funding to viable UK high-tech businesses.”
Enterprise Capital Funds use government funding alongside private sector investment to address the equity gap that arises where businesses with viable investment propositions cannot attract investment from informal investors or venture capitalists.
Notion Capital, which has a pan-European focus, will invest at least £40 million in the UK. The government has committed a total of £200 million to the Enterprise Capital Fund programme in the four years up until 2014/15.