A £12.8 million fund has been set up to promote investment in new technology-based businesses in the West Midlands.
The Mercia Technology Seed Fund will invest between £50,000 and £250,000 – though with the potential to invest up to a maximum of £750,000 - in companies with high growth prospects that have a robust and developed product and are based on patent protected technology.
Applications are welcomed from universities as well as new businesses, but should be able to demonstrate clear market plans and commercial interest in the technology under development.
The fund benefits from a unique mix of private and public sector investors that include - Advantage West Midlands, Forward Group, regional universities (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 round is targeting further investment of up to £2m.
Mercia Technology Seed Fund will be managed by WM Enterprise, a Birmingham-based investment fund manager which has in excess of £90m in funds under management across the country.
Fund principal Mark Payton 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.
“The fund will play an active role in the investments it makes. The fund is managed by a team of investment executives with a strong technology background and direct experience in the management of high growth technology businesses.”
Geoff Edge, chairman of WM Enterprise, added: “It will provide early stage technology companies with much needed finance to help commercialise and invest in the wealth of talent in the region’s universities, businesses and research institutions”.
Patrick Palmer, head of access to finance at Advantage West Midlands, said: “A key priority of the agency is the development of a diverse and dynamic business base. This fund will play an important role in achieving that priority by providing the vital early stage investment required to exploit innovation and develop new technologies through to commercialisation.
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