East Midlands innovators and entrepreneurs are to have access to a new fund aimed at supporting businesses in their earliest stages of development.
The region’s new £5m Early Growth Fund for start-up and early stage businesses will officially launch later this year, but small companies should start sending in their applications now, according to its organisers.
The East Midlands Development Agency (EMDA), which is launching the fund, said the fund will be aimed at supporting 70 businesses within the lower levels of the equity gap.
These companies typically seek modest amounts from £20,000 to £200,000 of finance, but ironically these smaller amounts are harder to secure, according to Jonathan Lowe, head of business investment at the EMDA.
“It is easier for businesses to borrow £10 million than £10,000,” Lowe said.
“We recognise the difficulties faced by high growth start-up and early stage businesses, and this new fund is designed specifically to help them.”
He added that the fund will complement many of the larger funds available and expects strong support for the scheme.
Additionally, the Early Growth Fund will invest alongside Business Angels, who will match every £1 invested by the EMDA, helping the fund raise a further £5 million of private investment into small businesses in the region.
The EMDA has asked private sector fund managers to tender for the contract to administer the fund.
The organisation expects the fund to launch in the summer and last for 10 years.
