Mercia seed fund launched to plug funding gap

Fund launched

The Mercia Technology Seed Fund, a £12.8 million fund that will invest in young technology-based ventures in the West Midlands region of the UK, was launched by the development agency Advantage West Midlands.

The fund will typically invest between £50,000 and £250,000, with the potential to invest up to £750,000, in companies with high growth prospects that have a robust and developed product, based on patent-protected technology. 

Applications for support, which are welcomed from universities as well as other sources, must demonstrate a clear market plan and commercial interest in the technology under development.

The fund has a mix of private and public sector investors including Advantage West Midlands, Forward Group, the regional universities of Aston University, University of Birmingham, University of Central England, Coventry University, Staffordshire University, University of Warwick and the University of Wolverhampton, University of Warwick Science Park and WM Enterprise. A second closing aims to raise a further £2 million.

The Mercia Technology Seed Fund is managed by WM Enterprise, a Birmingham-based investment fund manager that has funds in excess of million under management across the UK. Mark Payton, fund principal, said, “The Mercia Technology Seed Fund has a mix of private and public fund investors with a common goal of growing a strong portfolio of technology-based high growth businesses in the West Midlands.” 

WM Enterprise is a venture capital provider and economic development consultancy.  Apart from the Mercia fund, the funds it manages include: The Baring English Growth Fund, a national fund now at the end of its investment period, which has completed deals of between £1.5 million and £5 million in companies across England; the North West Equity Fund, a regional equity gap fund based in the North West; and the South East Growth Fund, regional equity gap fund based in the South East of England.