FIRST ENTERPRISE CAPITAL FUNDS GO LIVE
(22 March 2006)

Trade and Industry Secretary Alan Johnson today announced the first two Enterprise Capital Funds created under a multi-million pound government scheme to boost innovation, jobs and growth for small and medium-sized businesses (SMEs) in the UK. Mr Johnson also said the extra £100 million made available for Enterprise Capital Funds, as announced by the Chancellor in the Budget, highlighted the success of the pathfinder round and meant it could now be expanded. Enterprise Capital Funds combine government and private sector money to help bridge the equity gap faced by SMEs.

Mr Johnson said:'Many businesses with genuine potential fall at the equity gap hurdle – that point where the cash injection needed for the next step is too small to interest most venture capitalists but too big for friends and family to help out.

'These Enterprise Capital Funds will provide much needed investment with sound commercial management that would not otherwise be available. This is an excellent example of how government can work with the private sector to produce world-class support for British business.'

The first Enterprise Capital Funds will be:

• The IQ Capital Fund – a £25m fund which will operate across the Cambridge, Oxford and Bristol areas, but can invest anywhere in the UK. It will focus on technology based SMEs and will make investments of up to £1.5 million. The Fund will be managed by the Cambridge based NW Brown group.
  
  
• 21st Century Sustainable Technology Growth Fund – a £30 million fund which will operate across the UK and focus on high growth companies employing leading edge sustainable technology. E-Synergy Limited, which has close links with the UK's research community and expertise in selecting and backing strong technology in early-stage companies will manage the Fund.

Up to three further funds could be announced as part of the initial stage of the pathfinder round of Enterprise Capital funds which is still ongoing.