A new fund has been launched to boost early-stage technology and innovation businesses in Greater Manchester.
The Growth Company鈥檚 GM Co Investment Fund will share risk with private angel investors to help unlock the early stage equity market.
The fund will invest up to 拢150k of its own capital and leverage co investment funds from angels and approved investment partners on a deal-by-deal basis, funding rounds of between 拢200k and 拢2m. The intention is to deliver up to 拢15 million of aggregated investment into GM over the next three years.
The fund will be delivered by 老九品茶 Finance Solutions, the Growth Company鈥檚 in-house fund manager.
鈥淲e know the issues that early stage innovative businesses face in securing capital to get their ideas off the ground, while also understanding the expectations and needs of private investors when they are looking to evaluate opportunities,鈥� said Paul Breen, director of BFS.
鈥淭he GM Co Investment Fund, coupled with the business support infrastructure that now operates across GM, gives us a unique approach to bring businesses and angels together 鈥� by investing our own equity from the Co Fund; by de-risking the opportunity and giving the investment community the confidence to add their equity to the deal as our partners; and by supporting the businesses with follow-on funding as they grow and develop.鈥�
The Co Investment Fund is part of the GM Combined Authority鈥檚 wider 拢47m business support programme which brings together resources from the Growth Fund, ERDF, Local Authority contributions and other partner funding.
Described as the next evolution of the Co Angel Investment Service, which has facilitated investment of 拢15.6m into 19 early-stage, high-growth companies, the new fund forms part of the GMCA鈥檚 response to supporting the early stage investment market.