The British Business Bank has announced another regional fund aimed at providing financial support to every UK nation and region outside of London.
The £140m of new funding for the East of England Investment Fund covers Essex, Suffolk, Hertfordshire, Norfolk and Cambridgeshire and offers loans from £25,000 to £2m, as well as equity investments of up to £5m.
The fund will drive sustainable economic growth by supporting innovation and creating local opportunities for new and growing businesses throughout the East of England.
The East of England is home to 15% of the UK’s university spinout businesses, however last year only 9% of the UK’s total equity investment went to the region. The launch of the Fund will help to bridge the gap between academic innovation and market deployment in the region.
David Hourican, Incoming Interim Chief Executive Officer of the British Business Bank, said: “The East of England is home to some of the UK’s most innovative and enterprising businesses, from world leading life sciences to advanced manufacturing and agri-tech. The launch of the East of England Investment Fund will play a crucial role in stimulating growth throughout the region by ensuring its businesses have access to the finance they need and deserve.”
Science, Innovation and Investment Minister Chris McDonald added: “The East of England is home to small and medium sized businesses that are locally significant and internationally competitive. Many of these are in sectors such as life sciences, technology and clean energy that are growing quickly.
“These businesses need financial support to grow and take advantage of new market opportunities, but I know from my own experience that it isn’t easy if you are located outside of London.
“That’s why the British Business Bank is creating a new fund to support business in this region, sitting alongside targeted finance funds for every part of the UK. This is all part of the Prime Minister’s ambition to make sure that economic growth happens in every postcode, so that everyone in the country has the opportunity to benefit.”
The East of England Investment Fund will be managed by two fund managers appointed by the British Business Bank. Eastmeare, which is part of Beechbrook LLP and Mercia Ventures. which is part of Mercia Asset Management PLC. Eastmeare will oversee the debt finance part of the fund, while Mercia Ventures will manage the equity investment part of the fund.
The launch of the East of England Investment Fund means the British Business Bank is now delivering targeted finance to every UK nation and region outside 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.
