DTI launches fund to conquer equity gap
The government has completed first of its new Enterprise Capital Funds in a multi-million pound scheme aimed at narrowing the equity gap for small businesses.
The Department of Trade & Industry’s (DTI) new £30m Enterprise Capital Fund, Seraphim Capital, commenced on 11 September with a primary focus on UK firms looking to raise equity in the region of £500,000 and £2m.
Seraphim is the first UK-wide “angel-led” Enterprise Capital Fund, with £10m private equity and £20m government funding, organisers said.
“We are delighted that Seraphim Capital has been first Enterprise Capital Fund to launch,” said Mark Boggett, investment director of Seraphim Capital.
“It will provide a platform to promote the vital role that experienced Business Angels play in the funding of early stage fast growth companies and should enable a considerably greater quantum of funds to be deployed from these sources than they have hitherto been able to provide.”
Boggett said Seraphim’s approach will involve providing ‘Mentor Capital’, with investments from successful entrepreneurs who are re-cycling returns from their own enterprises and who provide active day to day support and advice.
The DTI announced the introduction of five additional funds, which it expects to to launch during the next six months, bringing the total funds available for investment to £162.5m.
© Crimson Business Ltd. 2006