The GM Co Investment Fund is a new approach to increasing the supply of capital to the pipeline of early-stage technology and innovation businesses coming out of GM.
Developed by The Growth Company as the next evolution of the successful Co Angel Investment Service, which has already facilitated investment of £15.6m into 19 early stage, high growth companies, the new Fund forms part of the GM Combined Authority’s response to supporting the early stage investment market, and integrates with the range of wider GC business finance and business support services. The Fund will invest up to £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 £200k and £2 million. The intention is to deliver up to £15 million of aggregated investment into GM over the next three years.
Delivered by Business Finance Solutions, the Growth Company’s FCA regulated, in-house Fund Manager, the GM Co Investment Fund will share risk with private Angel investors to help unlock the early stage equity market. The Co Investment Fund is part of the GMCA’s wider £47m business support programme which brings together resources from the Growth Fund, ERDF, Local Authority contributions and other partner funding.
Paul Breen, Director of BFS, said: “We 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.”
“The 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 – 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.”
For the first time, Greater Manchester is bringing a focus to co investing deals led by private sector business angels and approved investment partners. Companies will also be able to access additional Growth Company support through finance and business support delivered by Business Finance Solutions and the Business Growth Hub.
For more information on the fund and to make an enquiry please click here.