Three new UK Enterprise Capital funds announced with £90M for start ups

Public funding of £60 million will be matched with £30 million of private sector money, to make investments of up to £2 million per company.

This brings the total government commitment to this programme to more than GBP 141 since it was set up 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; and Oxford Technology ECF – a £30 million fund 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 the new funds 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.”

At the same time the government announced the creation of Capital for Enterprise Limited, which will manage the funds from 1 April 2008. This 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.