A new source of funding for low carbon business is now available in the South West of England. The South West RDA has invested £2.5m into the South West Cleantech Co-investment Fund. The fund has been established by South West Investment Group (Capital) Limited with operational support from South West Angel and Investor Network (SWAIN) and Regen SW. It is open for business.
The fund will, subject to conditions, provide funding of between £50,000 and £100,000, alongside new equity investments, in Cleantech businesses who are based in the region. It will help support entrepreneurs and early stage businesses looking to develop low carbon technologies and innovations with access to crucial growth capital.
A key distinguishing feature of the fund is that it will only invest alongside private investors or small Venture Capital firms (Keystone Investors) who have both knowledge of the sector and experience in making business investments.
Stephen Peacock, the South West RDA’s executive director enterprise and innovation, said: “This is a fantastic opportunity for the region’s low carbon industry to access a new source of funding. The fund will help businesses grow and invest for the future, creating hundreds of highly skilled jobs. This has come at exactly the right time for the region’s thriving environmental sector.”
SWIG Capital will administer the fund and ensure that the legal and commercial obligations are met by the company. John Berry, Executive Director of SWIG Capital commented: “We welcome the creation of this Cleantech Co-investment Fund. Not only does it encourage investment by the private sector in the region, but it provides investment to those Cleantech businesses which could make a real difference to building a low carbon economy for the South West.”
SWAIN will undertake the initial evaluation of businesses to ensure that they are attractive to investors and are ready for investment. They will also be responsible for attracting and identifying qualifying keystone investors. Philip Tellwright, Managing Director of SWAIN commented “SWAIN has already been successful in attracting private angel investment into almost 70 companies and the Cleantech Co-investment fund will help to leverage the overall investment and will inevitably attract further credible green investors”.
Regen SW, will ensure whether the core business of a company qualifies it to be regarded as a Cleantech business. Merlin Hyman, Chief Executive of Regen SW commented: “Regen SW is working with over 900 businesses, local authorities, the regional development agency and many other partners on a huge range of exciting projects to the development of a vibrant low carbon economy in the South West of England. The South West Cleantech Co-investment Fund is an important part in developing this vision by enabling the private sector to invest in the entrepreneurs, building the breakthrough sustainable energy business of the future. Regen SW is, therefore, delighted to be working with the fund partners on this exciting initiative”.
If you are a company looking for equity investment that might qualify as a Cleantech company, then you can find out more about the qualifying criteria and the process involved from the SWAIN website, www.swain.org.uk. Investors considering investments in this sector wanting to pre qualify as Keystone investors should also find out more by visiting the SWAIN website.
