b'Annual Report & Accounts 2022 Mercia Asset Management PLC 23Strategic reportRegional VentureA venture-backed future Our range of capital investment inregions sustainable entrepreneurship. Providing finance to SMEs is the catalystaccelerated growth sectors demonstratesOne of these fast-growth businesses is to a functioning society. This has beenour determination to embrace technologyElmtronics Ltd, a company working in achievable through Mercias activities inused for good. TheLogically Ltd, aelectric vehicle charging that having developing and carefully co-ordinatingYorkshire-based technology company thatreceived several rounds of funding from the provision and deployment of capitaldevelops advanced artificial intelligenceNEVF since November 2020 was acquired to the regions. We now manage overto fight misinformation online, is a keyby Mer, part of Europes largest renewable 150million in third-party regional fundsplayer on the international stage. Duringenergy supplier, Statkraft. and have invested 26.3million into the financial year, the business completed 48 businesses through NPIF, MEIF anda $24.0million funding round withOur ability to combine expertise and NEVF during the year ended 31 MarchVitruvian Partners and Amazons deep-sector and industry experience 2022. The distribution of capital to SMEsThe Alexa Fund becoming shareholders inaround our portfolio of businesses has enhanced commercial vitality and the business.drives positive momentum, even during had a positive societal impact across the most challenging macroeconomic the Midlands and North of England. Mercias investment strategy, which is toand geopolitical times. This approach support local communities to reimagineis amplified by our ability to follow our As we continue to strengthen our role as aexisting industries, plays out in regionsmoney, either with our own capital or leading provider of regional venture capital,such as South Yorkshire, and Humber andthrough structured co-investment. The we have ensured that our portfolio hasTeesside. Businesses such as Tribosonicsintimate working relationships that our become more diverse and scalable. ThisLtd, which received its first investmentinvestment team has with our portfolio has been facilitated by the fluidity of ourfrom Mercia in 2020, is a prime example ofbusinesses, alongside the knowledge Complete Connected Capital model and ourhow a local business that uses universityframework that consists of our non-increasing focus on purpose-led businesses.research has created products withexecutive network, have helped secure Our investments are not concentrated inprofound impact. Tribosonics designsthe future growth of our portfolio and one sector, yet many of these SMEs are theand produces smart sensors to assimilateexit strategies. Therefore, as we face the catalyst for a tech-enabled future.data to support the manufacturing, poweryear ahead, we do so with the confidence generation and transport sectors, makingthat comes on the back of a strong year of Our investment philosophy, patience andthem more efficient and sustainable.realisations and from having a dynamic long-term vision have proved successfulSimilarly, in the North East, Mercia hasinvestment team that has mapped out the in emerging sectors and technologies. Ourbeen instrumental in finding and investingkey sectors they believe will represent the investment strategy that culminated inin diverse businesses in line with thebest venture-backed opportunities inNPIF equity investing in Deep Tech assetsthe future. such as Sheffield-based Faradion has delivered impressive resultsthe ultimatec. 192 msale to Indian conglomerate Reliance being testament to this regionally led, sector-thematic approach. The flotation of Libertine Ltd on AIM, which achieved a 27.0million market capitalisation, is yet another business thatFuMreceived several rounds of investment through NPIF. Our investment philosophy, patience and long-term vision have proved successful in emerging sectors and technologies.Will ClarkManaging Director,Regional Venture Funds'