New £210m investment fund launches to unlock growth in the South East of England
A new £210m Fund designed to support the growth of small and medium sized businesses in the South East of England has been launched today by the British Business Bank.
Launch of the South East Investment Fund and forthcoming East of England Investment Fund later this month means the British Business Bank is now delivering targeted finance across every UK Nation and region outside of London.
This supports the government’s plan for growth in every postcode by helping businesses access finance close to home. By backing ambitious smaller businesses, the fund aims to support innovation, create jobs and stimulate sustained economic growth in the region.
Covering Buckinghamshire, Oxfordshire, Berkshire, Hampshire and the Isle of Wight, Sussex, Surrey and Kent, the South East Investment Fund will provide much-needed access to finance for small and medium-sized businesses, offering loans from £25,000 to £2m and equity investments of up to £5 million to help businesses start, scale and grow.
The Fund has already made its first investment with a £250,000 loan to Basingstoke technology company Process Vision, demonstrating early impact in the region. The funding is backing the company’s next phase of commercial growth and international expansion.
The South East of England is home to 17% of the UK’s university spinout businesses, behind only London,while the region received 5% of the UK’s total equity investment by value last year. The launch of the fund will help to ensure the bridge between academic innovation and market deployment is adequately supported in the region.
David Hourican, incoming interim chief executive officer of the British Business Bank, said, ‘Today’s launch of The South East England Investment Fund will help to stimulate economic growth throughout the region. The South East of England is home to some of the UK’s most innovative technological and scientific businesses and this fund will ensure that business have local access to the finance they need to grow, scale and expand.’
Business secretary Jonathan Reynolds said: “Small businesses are the bedrock of our economy and a vital part of any high street, whether it’s a tech startup in Surrey or a creative agency in Margate. Making sure that smaller businesses have the backing they need to thrive is a crucial part of creating good growth in every postcode.
“We are determined not to let access to investment be a barrier to success for businesses in the South East. The launch of this fund will help to ensure that small businesses across the South East can grow to match their ambitions, whether that is bringing in new staff, moving into a new base or scaling into an international company.”
Isis du Jour, Founder of Yoga Yurt, said: “I am incredibly grateful for the support of British Business Bank which made it possible for me to start my dream business. The whole process was very detailed and informative, leading me to consider all aspects of my business from marketing strategy to sales prognoses and target audience. I was supported and clearly guided through all stages of the application process, and I genuinely felt that all of the people I dealt with were there to help me succeed.”
The South East Investment Fund will be managed by a team of fund managers appointed by the British Business Bank including The FSE Group and Maven Capital Partners. The FSE Group will manage the debt finance part of the fund while Maven Capital Partners will manage equity investment through the fund.