A new £35m fund that aims to nurture the next generation of high-growth North East businesses has attracted over 50 applications within three weeks of its launch.
The North East Accelerate Fund, which is managed by Mercia Ventures, offers up to £1m investment for early-stage companies across the region. Mercia says the assessment process is well underway, with the first deals expected to complete early in the new year. Accelerate is part of the new North East Fund, a £350m initiative announced by North East Mayor Kim McGuinness last month,
Ian Wilson, Fund Principal at Mercia Ventures’ Newcastle office, said: “The North East Accelerate Fund has quickly gained traction with businesses in the region, highlighting the strong demand for capital. We have worked hard to fast track applications through the pipeline and the first deals are already progressing. We want to encourage even more ambitious founders to consider how equity investment can help them innovate and fulfil their potential.”
Ian Wilson said the new fund would complement the previous North East Venture Fund, which supported successful early-stage businesses including electric vehicle charging company Elmtronics Group, safety software specialist Notify Technology, Aelius Biotech whose laboratory models offer an alternative to animal testing, and energy consultancy Troo, which now employs more than 120 people.
Since the launch of its Newcastle office in 2018, Mercia has invested in excess of £40m in the region which in turn has attracted a further £45m from other investors and created over 500 jobs.
In preparation for the launch of the new fund, Mercia Ventures has expanded its team in Newcastle with two new appointments. Connor Murphy moves across from Mercia’s debt team, while Owen Conquest joins from local accountancy firm UNW. They will work alongside Ian Wilson and Investment Director, Chris McCourt.
Ian Wilson urged other businesses seeking investment to get in touch: “We’re looking for ambitious businesses with cutting-edge technologies and services that address a clear market need, and play to regional strengths such as life sciences, software, engineering and electrification. We look forward to working with them to grow their business and drive the next generation of North East success stories.”
Watch the video interview with Ian Wilson.