Bringing together private and public sector capital, Enterprise Capital Funds (ECFs) provide equity investments for businesses in the UK. Set up in 2006, there are now 16 ECFs in Britain worth £543.5 million, comprising £321.2 million of government funds and a total of £203.7 million has been invested in 169 companies to date.
Managed by a number of well-known venture capital firms including MMC Ventures, Notion Capital and Passion Capital, new funds are determined by a rolling investment programme. In 2008, management of of ECFs, along with other Department for Business, Innovation & Skill (BIS) equity funds including the Small Firms Loan Guarantee (SFLG), was transferred to Capital For Enterprise (CfEL). When CfEL become part of the British business bank in October 2013, responsibility for ECFs again shifted. Recent research from the ICAEW’s Corporate Finance Faculty, show that a large proportion of ECF capital is still to be invested. Furthermore, the newer, and more active funds have been shown to be larger in size with a much wider range of sectors being targeted by ECFs.
All strong evidence to suggest that the ECF funding mechanism is an important source of capital for entrepreneurs seeking finance, but how do you access it?
Here is a list of the currently active ECFs which we know about, if you need an introduction or just a professional to have a look over your proposition before you go out to VC’s get in contact with us here.
Notion Capital 2
Founded: 2012
Size: £76.3 million
Focus: Cloud computing and software-as-a-service firms
Proportion from UK government: £25 million
Amount invested to date: £19.5 million (13 businesses)
Exits: 1
Status: Making investments
Longwall Ventures ECF
Founded: 2012
Size: £40 million
Focus: Science, engineering, technology business-to-business ventures at early stage
Proportion from UK government: £25 million
Amount invested to date: £3.5 million (8 businesses)
Exits: n/a
Status: Making investments
Foresight Nottingham Fund
Founded: 2013
Size: £40 million
Focus: Nottinghamshire-focused high-growth businesses
Proportion from UK government: £25 million
Amount invested to date: £2 million (2 businesses)
Exits: n/a
Status: Making investments
Passion Capital
Founded: 2011
Size: £37.5 million
Focus: Digital media and consumer technology businesses looking for seed capital
Proportion from UK government: £25 million
Amount invested to date: £18 million (39 businesses)
Exits: 4
Status: Making investments
Episode 1 Investments
Founded: 2013
Size: £37.5 million
Focus: Minimum viable product stage software start-ups
Proportion from UK government: £25 million
Amount invested to date: £2.1 million (four businesses)
Exits: n/a
Status: Making investments
Panoramic ECF 1
Founded: 2010
Size: £34 million
Focus: Small and medium-sized businesses with revenues of over £1 million
Proportion from UK government: £20 million
Amount invested to date: £10.7 million (8 businesses)
Exits: 1
Status: Making investments
Amadeus IV Early Stage Fund
Founded: 2013
Size: £33.2 million (so far)
Focus: Disruptive technologies at the seed and early stages
Proportion from UK government: £15 million
Amount invested to date: £0
Exits: n/a
Status: Making investments
Regents Park Partners II ECF
Founded: 2014
Size: £30 million
Focus: Early-stage tech fund management arm of London Business School
Proportion from UK government: £20 million
Amount invested to date: n/a
Exits: n/a
Status: Making investments
MMC Enterprise Capital Fund
Founded: 2008
Size: £30 million
Focus: Tech-enabled businesses which are revenue generating
Proportion from UK government: £20 million
Amount invested to date: £22.4 million (13 businesses)
Exits: 0
Status: Making investments
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