New Round of Enterprise Capital Funds boosts investment in high growth businesses
Three new groups are to be awarded £60 million as part of the Government's efforts to tackle the lack of financial backing available to fledgling businesses.

The public funding will be combined with £30 million of private sector money as part of the latest round of Enterprise Capital Funds - designed to invest in small high growth companies.

Speaking at the launch of Enterprise Week, Secretary of State for Business, Enterprise and Regulatory Reform John Hutton said:

'Almost 80 per cent of small businesses seeking finance obtain it on their first attempt, but a small number still face difficulties, particularly companies seeking investment to grow. We're working to address these market failures.

'Enterprise Capital Funds help SMEs with high growth potential to raise equity finance up to £2 million.

'This brings the total Government commitment to this programme to more than £141 million since last year.'

The three groups to receive Enterprise Capital Funds are:

• MMC Ventures Limited - a £30 million fund which will be invested across the UK targeting businesses in the healthcare, technology and financial services sectors.
• The Dawn Capital Fund - a £30 million fund which will invest in traditional sectors where there is scope to make improvements through the use of technology.
• Oxford Technology ECF - a £30 million fund operated by an established fund management team which will operate out of Oxford targeting early stage companies in the science, engineering and technology sectors.

David Quysner, Chair of the Capital for Enterprise Board that advised the Government during the assessment stage said:

'These new funds will be positive additions to the ECF portfolio. They demonstrate that the model is attractive to good quality fund managers and, just as importantly, to the private investors willing to back them.

'These funds will target the equity gap, making investments in small, innovative companies that can produce good returns but which would otherwise struggle to get funded.'

Mr Hutton also announced the creation of Capital for Enterprise Limited, which will manage the funds from 1 April 2008.

The new body will take charge of a number of current government programmes including the UK High Technology Fund, the Regional Venture Capital Funds, Early Growth Funds and the Small Firms Loan Guarantee Scheme.

Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215 6740 (for those with hearing impairment)
http://www.berr.gov.uk

This news article is courtesy of the Government News Network.