Technology Fund Launches for the West Midlands

The Mercia Technology Seed Fund, a £12.8 million fund which will invest in young technology based ventures in the West Midlands region, was officially launched today (21st March) at an event held at Villa Park.

The launch event, sponsored by Advantage West Midlands, Birmingham Research and Development Limited (BRDL) and WM Enterprise, brought together regional entrepreneurs, leading individuals from the West Midlands universities and the regional business community.

The fund will typically invest between £50k and £250k, with the potential to invest up to £750k, in companies with high growth prospects that have a robust and developed product and are based on patent protected technology.  Applications, which are welcomed from universities as well as other sources, must demonstrate a clear market plan and commercial interest in the technology under development.

The fund benefits from a unique mix of private and public sector investors.  At the fund’s first close, investors include Advantage West Midlands, Forward Group, regional universities (Aston University, University of Birmingham, University of Central England, Coventry University, Staffordshire University, University of Warwick and the University of Wolverhampton), University of Warwick Science Park and WM Enterprise.  A second closing is targeting further investment of up to £2m.

The Mercia Technology Seed Fund is managed by WM Enterprise, a Birmingham-based investment fund manager which has in excess of £90m in funds under management across the country. Funds under management have a strong technology focus and WM Enterprise has developed an invaluable network of co-investors, advisers and non-executive directors to support businesses from the seed finance stage through development to exit by trade sale or flotation.

Mark Payton (Fund Principal) said: “The Mercia Technology Seed Fund has a mix of private and public fund investors with a common goal of growing a strong portfolio of technology-based high growth businesses in the West Midlands.  The fund will play an active role in the investments it makes. The fund is managed by a team of investment executives with a strong technology background and direct experience in the management of high growth technology businesses.”

Geoff Edge (Chairman of WM Enterprise) added: “WM Enterprise is thrilled to have raised this fund, one of the largest funds of its type in the country.  It will provide early stage technology companies with much needed finance to help commercialise and invest in the wealth of talent in the region’s universities, businesses and research institutions”.

Patrick Palmer, Head of Access to Finance at Advantage West Midlands, said: “A key priority of the Agency is the development of a diverse and dynamic business base. This fund will play an important role in achieving that priority by providing the vital early stage investment required to exploit innovation and develop new technologies through to commercialisation.”

Paul Isaacs, Managing Director of the Forward Group, said "We are pleased to be a significant cornerstone investor in the Mercia Technology Seed Fund, a fund that has fostered significant links with the region's top universities and a fund that aligns itself with our own focus of investing in and supporting young and rapidly growing technology ventures in the West Midlands.”

Notes to editors

WM Enterprise is a venture capital provider and economic development consultancy.  The funds it manages include:

• The Mercia Technology Seed Fund

• The Baring English Growth Fund – a national fund which is now at the end of its investment period which has completed deals between £1.5 and £5m in companies across England, including those in the Midlands;

• The North West Equity Fund - a regional equity gap fund based in the North West;

• The South East Growth Fund - a regional equity gap fund based in the South East;

For more information on the Mercia Technology Fund contact Dr Mark Payton (markp@merciafund.co.uk) or call 0121 236 8855. To find out more about WM Enterprise visit www.wm-enterprise.co.uk

Advantage West Midlands is the regional leader for developing economic prosperity. We work with a range of public sector partners, voluntary and community organisations and the private sector, to develop strategies and support projects that will help transform the West Midlands’ economy.

Forward Group (www.forwardgroup.co.uk) is an evergreen private equity Fund with over £100m of assets under management which offers support not only with funds, but also assists with operational, financial and strategic support where necessary.

Through its wholly owned subsidiary, Forward Venture Management Limited, Forward Group makes and manages investments of between £250,000 and £10m in young and growing companies in the UK.  The company has experience and is comfortable in investing in technology, leisure, property and specialist engineering including medical.

UCE Birmingham is one of the largest and most successful universities in the West Midlands region.   With 24,000 students and over 3,000 staff, the university is unique in its ability to provide access to design resources and knowledge.  In the last 5 years, UCE Birmingham has invested over £50m in facilities and infrastructure, with a further £30m projected for 2007.  To date, UCE Birmingham has helped over 1,000 regional design businesses to innovate and grow in increasingly competitive markets.

Aston University: With the current national focus on research quality, Aston’s robust research and high-quality teaching offers an outstanding contribution to economic growth relevant to both large and small organisations throughout the region, nationally and internationally. Aston University has a reputation for strong, industrial engagement with businesses and the community, and delivering relevant research with interdisciplinary teams working alongside companies and practitioners.