New Source of Funding for High Growth Businesses
Northern Growth Capital is a new Business Angel network based in Carlisle. The aim is to provide equity funding to high growth businesses in the area. Business Angel Networks are an established and significant part of the investment landscape but until now there has been no such organisation in Cumbria.
Northern Growth Capital is the brain child of successful local businessman, Jonathan Lowe, “We want to fill the funding gap that exists for high growth businesses. These businesses often need funding to achieve their potential but are not sufficiently developed to get the money they need from the banks. At the same time, the venture capitalists are generally aiming for bigger companies and bigger deals. We expect to invest between £200,000 and £500,000 per deal. These will be high quality businesses with very good management teams and a credible business plan to grow quickly”.
The money will come from Business Angels, high net worth individuals who will provide funding in return for a stake in the business. They will usually be successful business people who are looking for alternative ways to invest their cash and earn superior returns. Paul Merone who was brought in to help set up Northern Growth Capital says,” the financial returns for the investors can be excellent but that is not the whole story. Many Angels also want to provide advice and guidance to these businesses as a way of using their expertise and experience to benefit the local economy. Having said that, they all want a good deal and the generous tax reliefs provided by the Enterprise Investment Scheme (“EIS”) for this type of investing make it even more attractive”.
Jenny Tooth OBE, Chief Executive, UK Business Angels Association said:
“Angel investment in the North West and across the Northern Powerhouse in general remains patchy and fragmented. We are delighted that Northern Growth Capital has been established to mobilise much needed investment and support to growth potential entrepreneurs in the Cumbria area. This will provide a new focal point for both existing and would-be investors to come together and find investment opportunities and offers a valuable addition to the angel ecosystem in the region”
More information can be found atwww.northerngrowth.co.uk