News
Appointment of new Chair (Designate) for Capital for Enterprise - Lucy Armstrong
Sheffield, January 2012 - Capital for Enterprise is pleased to announce that Lucy Armstrong has been been appointed by BIS to be the new Chair of Capital for Enterprise, taking up her new post from 1 April 2012 on the retirement of David Quysner.
Lucy is chief executive of The Alchemists, a company that matches up experienced, successful entrepreneurs with high growth medium sized business to accelerate their growth. Her earlier career was in private equity, corporate development and headhunting with 3i plc, Courtaulds Textiles and Tyzack. She is a non-executive of a venture capital investment group and angel network, a national qualification body and acting chair of Northumbria University, and Chair of the CBI’s SME Council.
The full press release from the Department for Business, Innovation and Skills can be found here.
Progress towards a new Fund-of-funds for SMEs across Europe
Brussels, December 2011 - Capital for Enterprise is pleased to be be a signatory of the new Memorandum of Understanding for the creation of a new pan-European fund-of-funds to provide finance to SMEs. The European Venture Funds Investor Network (EVFIN), of which CfEL is a founder member, will seek funds from a number of sources including the European Commission and national operators.
The full press release can be found here.
Angel CoFund – Open for Business
Sheffield, December 2011 - The £50m Business Angel Co Investment Fund is now open for business. The fund is able to make initial equity investments of between £100K and £1M in to SMEs alongside syndicates of business angels, subject to certain geographical restrictions and an upper limit of 49% of any investment round. More information can be found at www.angelcofund.co.uk.
The fund is not open to direct approaches from individual businesses and those seeking investment should first secure the interest of the business angel syndicate or network. Businesses seeking investment can find more information on business angels, syndicates and networks from the British Business Angels Association website www.bbaa.org.uk.
Extension of CfEL responsibilities and new additions to the CfEL team
Sheffield, October 2011 – On the 1st October 2011, Capital for Enterprise took responsibility for the oversight of the SME finance schemes previously under the oversight of the English Regional Development Agencies (RDAs), which are due to be abolished on 31st March 2012. This represents a very significant extension of CfEL’s responsibilities, as these schemes have made available more than £1 billion to SMEs.
CfEL is also pleased to welcome five new colleagues to the organisation, who have joined from the RDAs in the East & West Midlands and the North East. More details can be found on our people page
Retirement of Capital for Enterprise Chairman, and appointment process for new Chairman
Sheffield, September 2011 - David Quysner CBE, the current chairman of Capital for Enterprise has announced his retirement and will be leaving the company at the end of March 2012. David has made a significant impact since his appointment as the company's first chairman, and we would like to thank David for sharing his time and expertise.
The post of Chairman has been advertised and we expect to make a new appointment with effect from 1st April 2012
CfEL becomes Founder Member of European Venture Fund Investors Network
Sheffield, August 2011 - CfEL has become a member of the newly-formed European Venture Funds Investors Network (EVFIN). EVFIN is an informal platform for dialogue launched in March 2011 in response to the critical situation faced by the venture capital industry in Europe. This Network gathers 11 major European public and private operators active in the field of venture capital and venture capital funds. It is aimed at facilitating exchange of best practices among its members, at developing a seamless European venture capital industry and at bringing out concrete measures at the European level to promote the development of this industry in cooperation with the European institutions.
Announcement of Business Angel Co-Investment Fund
Sheffield, 12 April 2011 - Capital for Enterprise welcomes the announcement of the allocations of the first round of the Regional Growth Fund. CfEL will manage an allocation of £50m to invest alongside business angel syndicates into eligible SMEs.
More detail on this can be found on the Portfolio page.
Reappointment of Capital for Enterprise Non-Executive Directors
London, 1 April 2011 - Business and Enterprise Minister Mark Prisk has today announced the reappointment of Alison Loudon, John Spence and John McCrory as Non-Executive Directors of Capital for Enterprise Limited. Alison Loudon will serve until 30 June 2012, John Spence until 31 March 2013, and John McCrory until 31 March 2014.
Capital for Enterprise supports a tenth Enterprise Capital Fund
Sheffield, 29 March 2011 - Early stage investment firm Passion Capital has announced its first investment fund closing at £37.5 million ($60 million). Partners Stefan Glaenzer, Eileen Burbidge and Robert Dighero will invest in ambitious entrepreneurs who have global ambition with early stage digital media and technology startups. This new fund will help address the increasing demand by early stage founders and teams for seed capital – at the most critical range of the equity and funding gap for SMEs.
The team secured significant funding from the private sector, validating interest and appetite from family funds and high net-worth individuals for supporting high tech startups. The UK Government has also invested £25 million, in this the 10th Enterprise Capital Fund (ECF) launched since the programme began in 2006.
European long-term financial institutions launch a common initiative on European Venture Capital funding
Brussels, February 7, 2011 - Capital for Enterprise (UK), CDC Entreprises, a subsidiary of the Caisse des Dépôts (France), announced on February 7, 2011, the launch of a working group aimed at proposing actions to improve the situation of the European venture capital industry, to complement existing measures at the European level. This initiative has already attracted expressions of interest from public and private investment companies.
The two institutions welcome the conclusions of the European Council meeting on February 4, 2011 which has called on the European Commission to present in 2011 proposals for setting up an EU wide venture capital scheme building on the European Investment Fund in cooperation with national financial institutions. They therefore stand ready to start promptly a dialogue with European authorities to bring inputs to this initiative.
The financial crisis of 2008 has dramatically hampered fundraising for venture capital funds: amounts raised by those funds decreased by four billion Euros between 2008 and 2009 - dropping from 7.4 billion Euros in 2008 to 3.6 billion Euros in 2009 - following a falling trend that continued into 2010 (Dow Jones Venture Source 2010). Accordingly, amounts invested by venture capital in SMEs decreased from €17 billion in 2006 to €5 billion in 2009 (Source: EVCA/PEREP 2007-2009).
In this respect, the purpose of this working group is to consider, define and evaluate the opportunity for new programmes and actions to be implemented on a pan-European basis in order to support and develop emerging and proven fund management companies across the EU. Other European public and private investors are also invited to join the initiative.
Spending Review - Confirmation of Enterprise Capital Fund programme and extension of Enterprise Finance Guarantee
November 2010 - Capital for Enterprise welcomes the outcome of the Comprehensive Spending Review, which has confirmed:-
- a further £200m for the Enterprise Capital Fund programme over the period 2011-2015
- that the Enterprise Finance Guarantee will be extended to £700m for the next four years.
CfEL looks forward to working with equity managers and lending institutions to optimise the effectiveness of these programmes to support the growth of SMEs.
Capital for Enterprise welcomes the emergency budget, which brings additional funding support for the SME sector
22 June 2010 - The Emergency Budget on 22 June 2010 contained three announcements directly relevant to SME activity:
- The extension of the Enterprise Finance Guarantee from £500m to £700m in the year to 31 March 2010
- The announcement of a new Enterprise Capital Fund, the details of which will be announced by Capital for Enterprise when the private fundraising has been completed by the manager
- The confirmation of the funding for the Growth Capital fund, which is to be established in response to Chris Rowlands’ Growth Capital Review.
This demonstrates the Government’s commitment to ongoing investment in SME Finance.
Second Tranche of the UK Innovation Investment Fund is up and running following first closing of the £200m UK Future Technologies Fund run by the European Investment Fund
22 February 2010 - Capital for Enterprise Limited (CfEL) was appointed by the Government to advise on the development of the landmark £150million UK Innovation and Investment Fund and to lead the process of selecting and appointing the investment fund managers. Commenting today on the appointment of the European Investment Fund to manage a proportion of the UKIIF, Rory Earley, CEO of CfEL, said:
"Following the successful appointment of Hermes Private Equity in January, we are delighted to have now completed negotiations with the European Investment Fund to manage independently a proportion of the UKIIF. Having worked closely with the team at the EIF to bring this contract to completion, we have been impressed with their professionalism and expertise and have confidence that they will continue to grow the capacity of the UKIIF and make an invaluable contribution to the government’s continuing drive to support young British businesses.
Prime Minister Gordon Brown said:
“Our new £325 million Innovation Investment Fund – launched as part of Building Britain’s Future – shows our commitment to the industries and the technologies that will create the skilled jobs of the future.
“This fund, seeded by the Government, is bringing private venture capital to growing enterprises. It is already providing £125 million of funding to high tech, low carbon businesses. From today, a further £200 million will be available for life sciences, digital and advanced manufacturing.”
The Government appointed Capital for Enterprise Limited (CfEL) to advise on the development of the UKIIF and to lead the process of selecting and appointing the investment fund managers. CfEL negotiated the fund with EIF as part of the Government’s continuing drive to support young British businesses.
Rory Earley, CEO of Capital for Enterprise, profiled by AltAssets
15 February 2010 - Rory Earley met with AltAssets to shed light on bridging the UK’s equity gap, ensuring the newly launched UK Innovation Investment Fund helps businesses in this country, the performance of government-backed venture funding and learning from past investment mistakes.
The UK Innovation Investment Fund is off the ground with the first closing of the £125m Hermes Private Equity Environmental Innovation fund.
26 January 2010 - It’s taken only 7 months for UKIIF to launch the first of two funds, the Hermes Environmental Innovation Fund, which has already raised £125m and will continue to seek further funding from investors.
The Environmental Innovation Fund, managed by Hermes Private Equity, will now start investing in low carbon and clean technology funds and co-investing in companies, providing much needed venture capital to help these innovative businesses grow. The Hermes Fund will focus on investment opportunities aimed at increasing the efficient use of resources (both renewable and non renewable) at all stages of production and consumption.
Over the past decade, the UK has emerged as a European frontrunner in alternative energy investment and is well positioned to further develop a sustainable market competitive globally. The Hermes Fund will look to benefit from this attractive market framework and expects to commit its capital over the next 2-3 years.
The Prime Minister, Gordon Brown MP, said
“The UK has a wealth of innovators and entrepreneurs seeking to create the businesses of tomorrow – businesses that will make the UK a world-leader in low carbon innovation and industry, and help to tackle some of the biggest challenges we face around energy and climate change. This fund will provide substantial investment where it is needed and deliver strong returns for investors."
Capital for Enterprise Limited managed the investment process and the negotiations with Hermes on behalf of HM Government.
Capital for Enterprise appoints Richard Hepper as deputy Chief Executive
Monday, 9 November 2009. Capital for Enterprise Ltd (CfEL), the UK Government’s venture capital and loan guarantee business, has appointed Richard Hepper to help with the rapid expansion of its business and to join the team driving its future direction. .
Hepper joins CfEL from Oxford Capital where he was an Executive Director. Oxford Capital is a previous winner of the prestigious “Venture Capital House of the Year” award. His previous venture investing career was at Enterprise Ventures Group and 3i. He also has significant strategic consulting experience from his time at Arthur D Little. He is an FCA and an economics graduate of Emmanuel College Cambridge.
Commenting on the appointment Rory Earley, Chief Executive of Capital for Enterprise Ltd, says: “I am delighted to have Richard on board. He will bring invaluable skills in helping us to grow the business and better serve our clients. “Since its creation Capital for Enterprise has striven to recruit the highest quality professionals from the venture capital sector. Richard will certainly add to our expertise and help drive our strategy over the coming years.”
Richard Hepper says: “At a time when many businesses are looking for new sources of finance in this recession, Capital for Enterprise sits at a pivotal position within SME funding. I am very pleased to be joining a first-class team which is making a significant difference to real businesses around the country.”
Capital for Enterprise announces £42m in support for two new funds
Capital for Enterprise awards £42m to support two new Enterprise Capital Funds with a target fund value of £62.5m.
Monday, 7 September 2009. Capital for Enterprise Ltd (CfEL) has awarded two new Enterprise Capital Fund (ECF) mandates to Panoramic Growth Equity and Beringea, marking a major advance in activity for the government backed fund. The funds are now raising private capital with a target of reaching £32.5m and £30m respectively in the coming months.
The ECF programme was launched in 2006 and now comprises a portfolio of 8 active funds with £215m with which to make investments. £142m of the £215m has been provided by the Government with a further £73m from private investors. To date £40m has been invested through the funds in 45 growing UK businesses.
Edinburgh based Panoramic Growth Equity will look to make investments throughout the UK in businesses with established cash flows which can demonstrate strong growth prospects. They will also look to support earlier stage investments where the management team have a strong track record of prior success. The fund is broadly generalist but with a specific focus on the Energy, Water, Healthcare, Media, Business Services and Communications sectors.
London based Beringea’s new ECF Beringea Digital Ventures will look to make investments in the digital media arena, supporting creative businesses through the inflexion point to bring products to wider national and global markets. The company will use their strong network within media and technology in the UK and US to assist their portfolio businesses in developing to fulfil their potential.
The ECF programme continues to look at prospective teams and funds in order to provide investment for strong businesses across the UK. Potential managers wishing to secure an ECF mandate are advised to make contact with the investment team in CfEL prior to submitting a proposal.
Capital for Enterprise Aspire Fund announces deal with Altacor
Specialist Ophthalmic pharmaceutical development company Altacor to receive £400,000 capital funding from CfEL in order to maintain business expansion.
Wednesday, 12 August 2009. Capital for Enterprise Ltd (CfEL) has made an investment of £400,000 from the £12.5m Aspire Fund into Altacor, a leading Ophthalmology development and marketing company.
The Aspire Fund’s £400,000 of equity funding completes a £1,000,000 funding round, alongside Esperante and Beringea, in order to ensure Altacor has access to fresh capital and can sustain its pharmaceutical development, formulation and marketing activities.
Other investors in this round are Netherlands based healthcare specialists Esperante and Beringea’s ProVen Health VCT.
Established in November 2008, the £12.5m Aspire Fund targets support for women-led businesses with an objective to increase the number of successful female entrepreneurs within the UK, ensuring that those with real potential to succeed are not held back through a lack of growth capital. The Fund is able to make investments of between £100k and £1m, providing up to 50% of capital in a funding round alongside other private investors. The Aspire Fund is managed by Capital for Enterprise on behalf of the Department for Business Innovation and Skills (BIS).
Capital for Enterprise confirms first Aspire Fund deal
Online charity fundraising site Everyclick receives £350k capital boost from CfEL to maintain impressive growth
Thursday, 23 July 2009. Capital for Enterprise Ltd (CfEL) is pleased to announce an investment of £350k from the £12.5m Aspire Fund to Everyclick, a leading provider of on-line fund raising tools for charities. The investment represents the first investment of the major new fund offered by Capital for Enterprise, an asset management business that designs, implements and manages finance measures to support Small and Medium Size enterprises (‘SMEs’) across the UK.
The Aspire Fund’s £350,000 of equity funding completes a £700,000 funding round which will ensure that Everyclick has access to fresh working capital and can maintain its impressive growth through new business development and contract wins.
Award winning, Gloucestershire based, software company Everyclick provides an on-line platform which enables consumers to make secure donations to any one of the UK’s 200,000 charities. The platform carries an expanding range of tailored services for charities and corporate sponsors. These include donations, sponsorship, appeals, vouchers, eGreetings, shopping and search based giving.
Established in November 2008, the £12.5m Aspire Fund targets support for women-led businesses with an objective to increase the number of successful female entrepreneurs within the UK, ensuring that those with real potential to succeed are not held back through a lack of growth capital. The Fund is able to make equity investments of between £100k and £1m, providing up to 50% of capital in a funding round alongside other private investors.