Access

to Finance
Guide 2010
Equity Funding
Loans
Grants
Business Support
Business Angels

Supported by
Contents

Contents
Foreword 4
Introduction 6
Common Pitfalls of Venture Capital Fundraising 8
Accessing Funding 11

Equity Funding 13–28

Finance for Business North East Accelerator Fund 13

Finance for Business North East Angel Fund 14
Finance for Business North East Growth Fund 15
Finance for Business North East Growth Plus Fund 16
Finance for Business North East Proof of Concept Fund 17
Finance for Business North East Technology Fund 18
Finance for Business North East Creative Content Fund 19
Aspire Fund 20
Bridges Ventures 21
Carbon Trust Investments Ltd 22
Coalfields Funds 23
Enterprise Capital Fund (ECF) 24
NESTA 25
NVM Private Equity Limited – Venture Capital Funds 26
RisingStars Growth Fund 27
UK Steel Enterprise Limited 28

Loans 29–36

Carbon Trust Loan Fund 29

Darlington Borough Council – The Falchion Fund 30
Enterprise Finance Guarantee 31
Five Lamps Organisation 32
PNE Group Loan Fund 33
Small Loans for Business Regional Enterprise Loan Fund (RELF) 34
Spirit of Enterprise Loan Fund 35
Street North East 36

Access to Finance Guide 2010 1

 Contents
Contents

Grants 37–49

GBI – Grant for Business Investment 37

GRD – Grant for Research & Development 38
Grant for Research & Development – Proof of Market Grant 39
Grant for Research & Development – Micro Grant 40
Grant for Research & Development – Research Grant 41
Grant for Research & Development – Development Grant 42
Grant for Research & Development – Exceptional Development Grant 43
Gateshead Council – Enterprise & Innovation Fund 44
Hartlepool Borough Council – Business Grants 45
Northumberland County Council 46
Rural Development Programme for England (RDPE) – Business Support 47
South Tyneside Council – Business Grants 48
Sunderland City Council 49

Business Support 50–54

Business Link 50
Solutions for Business 50
Understanding Finance for Business 51
Coaching for High Growth 51
North East of England Investment Centre (NEEIC) 52
Centre for Process Innovation (CPI) 52
Centre of Excellence for Life Sciences (CELS) 52
Codeworks 52
Digital City 52
Sunderland Software City 53
Newcastle Innovation Machine 53
Entrepreneurs’ Forum 53
The New and Renewable Energy Centre (NAREC) 53
Northern Film & Media 53
Connect North East 54
Finance Tree 54

2 Access to Finance Guide 2010

 Contents
Business Angels 55–59

Business Angels introduction 55

British Business Angels Association (BBAA) 55
British Venture Capital Association (BVCA) 55
AngelNet – E-Synergy 56
BiG – Business Investor Group 56
Beer & Partners 57
Braveheart Ventures 57
Hotspur Capital Partners 58
Tiger Corporate Finance Ltd 58
YABA – Yorkshire Association of Business Angels 58

Index 60–64

Feedback Back cover

Access to Finance Guide 2010 3

 Foreword
Foreword
Robert Drummond
Chair of Advisory Board
of North East Finance
4 Access to Finance Guide 2010
It has become fashionable to talk
about the recent failures in the
banking world and the excesses
that caused them. In reality much of
this was due to over lending into
large “leveraged” transactions.The
caution that banks are now
displaying has had an adverse
effect on smaller businesses where
the level of bank risk has probably
changed very little. Available bank
funds have shrunk and are likely to
continue shrinking as their balance
sheets are reduced to comply with a
tougher regulatory regime.
The “Equity Gap” is once again on
many lips and so much so that the
government commissioned the
Rowlands’ Review to consider whether
a new institution should be created to
fill the gap in the way that Industrial
and Commercial Finance
Corporation (ICFC) did in the 1940s.
The outcome is still uncertain and
there is no guarantee that even if an
institution emerges it will prove to be of
great value to the regions.The
shortage of equity for SMEs is not a
current fashion but a problem that
has been developing for many years
and has been created in part by the
same disease that hit the banks – the
desire by fund managers to get
bigger, fund larger deals and migrate
to London.
 Foreword
The value of small businesses in the understand all the different sources of
regions remains unchallenged but funds.There are many sources but
not fully appreciated. Small some of these are quite specialised
businesses – like large ones – create and most have clearly defined
jobs but often more in relation to the criteria, so a good guide is a real
funds that they require. Small necessity.
businesses – unlike large ones –
source most of their supplies and North East Access to Finance has
support services from their own brought together in one volume all
region. Small businesses, when the existing providers of debt and
successful, create wealth for their equity in the North East.The guide has
owners, managers and investors been set out in a straightforward way
which is almost certainly recycled in which has made it a pleasure to use.
the region. Often fund managers
investing in a region reinvest the I am sure that it will become an
successful realisations back into the invaluable guide for anyone looking
same community where their skills are to raise funds or for those advising
proven.This is a four-fold benefit to the clients in need. I expect to see it on
region which cannot be matched by many bookshelves and that there will
other economic activities. be a constant demand for regular
updates from consumers and
Fortunately it is not all bad news.There providers of finance alike.
are many sources of both public and
private funding and new ones are
beginning to emerge at a pace
greater than for a number of years. In
the North East we have created the
first English JEREMIE (now known as
Finance for Business North East) fund
that will bring £125m of European
money for investment in SMEs in both
debt and equity and be managed by
a group of experienced quality fund
managers. Where the problem
remains, it is partly a failure of our
business community to locate and

Access to Finance Guide 2010 5

 Introduction
Introduction
Hugh Morgan Williams
Chairman NEA2F Ltd
6 Access to Finance Guide 2010
I am grateful to Robert Drummond
for taking the time to emphasise
how important and helpful this
publication can be to businesses in
the North East. Research has shown
that one of the main barriers to
business growth is the sourcing of
debt and equity solutions,
particularly at a time when our
main banking system has been
constrained by the worldwide
events of the past eighteen months
and where the banks own business
model has faced serious
challenges.
This guide is split into five sections;
one addressing the search for equity
finance; another for loans and
current grant opportunities in the
region; the forth section looks at
forms of business support and
mentoring provision, ending with a
focus on Business Angels who are
keen to invest in North East
enterprises. We aim to make it easier
for business owners and finance
directors to navigate their way to a
solution that appeals to them.
I have been struck this past year with
how the problem of accessing
finance, particularly for SMEs is not
limited to the UK. Speaking
engagements have taken me to
Brussels, Moscow, Geneva, Slovenia

and Prague in the last year. All
countries have introduced specific
measures to help their own
businesses.The initiation of Finance
for Business North East with the help
of the European Investment Bank,
European Regional Development
Funds and One North East is just one
example of the wide range of
initiatives being attempted.
North East Access to Finance is a
company set up by One North East
as part of the Finance for Business
North East programme to invest the
legacy returns that are currently
being created from existing funds.
Alongside this task is to invest the
legacy of the Finance for Business
North East funds themselves to try
and ensure an evergreen continuum
of finance for the region’s businesses
over a twenty year period. So funds
like the North East Co-Investment
Fund and the Mezzanine debt funds
of North East Regional Investment
should spawn a Finance for Business
North East 2 in five years time.The
latest investment round is designed
to create Finance for Business North
East 3 five years later, all the while
building up fund management
capacity and a vital skill base within
the region.
Access to Finance Guide 2010
Introduction
In addition, we shall be working on a
wide range of initiatives, such as
improving Business Angel capacity,
increased training for entrepreneurs
in ensuring their businesses are
investor ready, and mentoring
initiatives to enable skills and
experience to be passed on to the
next generation.
We also expect to experiment with
some pilot funds addressing specific
needs, so all in all an ambitious
programme.
It is intended that this be a regular
publication to map the changes and
developments that take place each
and every year, and I apologise in
advance if there have been any
significant omissions.
From Easter 2010, there will also be a
dynamic web version that will be
monitored and updated on a regular
basis which can be found at
www.nea2f.co.uk
I am very grateful to the team that
has helped put this publication
together, and also for the
sponsorship from Ward Hadaway.
Any suggestions for the next edition
will be warmly welcomed.
7
 Common Pitfalls
of Venture Capital
Fundraising
Common Pitfalls of Venture Capital Fundraising
Katherine Hay-Heddle
Ward Hadaway
8 Access to Finance Guide 2010
When I was asked to write this article,
the title was to be “legal pitfalls of
fundraising”. This was a difficult
starting point as, provided you get
proper advice, early in the process,
there shouldn’t be any legal pitfalls.
The pitfalls arise from lack of
understanding of the process, the
terminology, and the implications
for your business.
Venture capitalists provide funding in
return for a percentage of shares in
your company.There are various types
of funding available such as venture
capital funds, which are professionally
managed funds invested by a team
who will have a wealth of experience.
Another common source of funding is
from wealthy individuals known as
“Business Angels”.
The first issue you need to consider is
whether venture capital funding is
right for you and your business.There
are other avenues of funding which
should also be considered as, in
some cases, these may be more
appropriate for you, such as bank
funding, grants or investments made
by family and friends. It is worth
considering all possible funding
routes to make sure you choose the
one which is best suited for you.
Venture capitalists are typically taking
a higher risk when they invest money

and so, in return, they will expect a
higher return from their investments.
If your company:
n is a highly promising start up with
a need for cash to develop; or
n needs cash to develop a new
product or market but is already
a successful business;
Or, if you are a management team
looking to do a management
buy-out, then venture capital funding
could be right for you.
If you think that venture capital is, or
could be, the right one for you, the next
step is to get your advisers on board. A
corporate finance adviser will be able
to assist you with approaches to the
right investors and a good lawyer will
be able to help you to understand the
process and terminology.Together, a
team of good advisers will mean that
you will understand the implications of
the funding for you and your business.
A common problem is that
companies looking for investment,
instruct lawyers after the main terms of
the deal have been signed up (an
offer letter or heads of terms have
already been signed). Whilst typically
at this stage the terms are not legally
binding, clearly you are not in the best
negotiating position to change any
Access to Finance Guide 2010
Common Pitfalls of Venture Capital Fundraising
term and it could well be too late to
get the best deal for your company.
Your advisers can guide you in
understanding what is, and what is
not, negotiable for the investor.There
are some issues which will be almost
impossible for an investor to agree to
change, but this isn't true of all issues.
There will be terminology in the head of
terms which, unless you have received
funding in the past, you are unlikely to
have come across and this often leads
to points been agreed without a full
understanding of how they will impact
on you and your business in practice.
Once your lawyer explains these points
to you, it may be that you feel you
cannot agree to some of them and as
a result, you may try to renegotiate with
the investor. Renegotiations late in the
process cause delays, and in some
cases, it may be too late for the deal
terms to be changed and, in the worst
case scenario, could lead to you not
getting the funding in the timescales
you need it.
Most investors will carry out a due
diligence process into your business
prior to making an investment. Speak
to your lawyer early in the process and
they can give you some guidance on
the areas which the investors will want
to review.The process will be much
smoother if you are prepared to hand
9
 Common Pitfalls
of Venture Capital
Fundraising
Common Pitfalls of Venture Capital Fundraising
this information over as soon as it is
requested.This also has the added
benefit of proving to your new investor
that you operate a well organised
business. Some of the terms of a
typical investment which cause the
most consternation to management
teams are:
n Warranties. Both the company and
the management team will be asked
to give warranties.These are a series of
statements about the company which
you are asked to make. In the event
that these statements are untrue, and
as a result of this, there is a loss in the
value of the investment, there could be
a warranty claim against you and the
company. In practice, warranty
claims in these circumstances are
extremely rare and it is normal for there
only to be a claim if the management
team knew of the issue and did not
disclose it to the investor before the
investment was made.
n Non-compete restrictions. These
are restrictions which bind the
management team which, in the event
that a member of the management
team leaves his or her employment,
prevent that person from competing
with the company for an agreed period
of time (usually between one and three
years).This is a common area of dispute
as, if the manager leaves, he still needs
10 Access to Finance Guide 2010
to earn a living.What needs to be
remembered is that if you are part of
the team which has not left, you will also
want to be sure that your customers
cannot be poached by an ex member
of the team.These restrictions need to
be carefully considered and drafted in
a way that suits all parties.
n Good leaver/bad leaver.When an
investor puts money into your business,
they are investing in you, the
management team.Any investor will
want to ensure that you are committed
to the business. One of the ways they
seek to do this is by including a good
leaver/bad leaver provision.Whether
you are good or bad when you leave
will depend on the reason for you
leaving and this will have an impact on
the value you are paid for your shares.
The area of most negotiation is
determining in which circumstances
you are a good leaver and in which
circumstances you will be a bad leaver.
The most common pitfall made by the
management team in investments is
not tying together the legal
documentation and the commercial
realities of how the business operates.
Get advice early to make sure the
documentation works for you, your
business and your investor and the
relationship between you stands a
good chance of being a happy one.
Accessing
Funding
Accessing the right funding to help
your business grow can be difficult.
We aim to make it easier for business
owners and finance directors to
navigate their way to a solution that
appeals to them, by providing
information on the comprehensive
range of support on offer for
businesses and start ups in the North
East – Solutions for Business and the
Business Link service, funded by public
partners such as One North East and
the European Union, as well as the
range of private finance initiatives.
The guide is split into five sections; one
addressing the search for equity
finance; another for loans and current
grant opportunities in the region; the
fourth section looks at forms of
Business Support and mentoring
provision, ending with a focus on
Business Angels who are keen to
invest in North East enterprises.
Access to Finance Guide 2010
Accessing Funding
Solutions for Business
Solutions for Business (SfB) is a
package of publicly funded business
support products and services
designed to help businesses start,
grow and succeed.
The right advice, loan or grant – at the
right time – can make the world of
difference to a business. Solutions for
Business products are simple to
understand and access, good value
for money and directed to where they
will have most impact to help
businesses grow.
This guide provides information on the
range of Solutions for Business
available to help businesses with
finance needs, alongside the range of
private finance available to help.
More information on the range of
Solutions for Business can be found at
www.businesslink.gov.uk/solutions
11
 Accessing
Funding
Accessing Funding

Business Link
Business Link – the Government’s
one stop business support service –
gives customers fast access to the
right information to answer their
business concerns.

The independent advisers in Business

Link can help businesses to identify the
most appropriate course of action, the
right order to address their needs and
the best places to access that help.

Business Link works with organisations

that have the necessary expertise to
deal with these enquiries and can
broker the customer to the most
appropriate source of advice or
finance from either the public or
private sector.

Business Link can be contacted on

the phone – 0845 600 9 006, or visit
www.businesslink.gov.uk/northeast

12 Access to Finance Guide 2010

 Finance North East
For Business Accelerator Fund

Equity Funding (Finance for Business Funds)

What are the size of deals? Type
£50k to £750k – co-investment with business angels, Equity
venture capital institutions or corporates will be a
requirement for a proportion of the fund.The Fund Size
Manager will have the discretion to invest using £20m fund making
debt, quasi-equity or equity structures as investments between
appropriate, within State Aid restrictions. £50k and £750k

Who can apply? Area

Companies and pre-start enterprises in most North East of England
sectors predominantly at the start-up and seed
capital stages. Target
SMEs
Where can I get more information?
The fund is managed by: Availability
NorthStar Equity Investors Ltd To 31/12/2014
5th Floor, Maybrook House
27-35 Grainger Street
Newcastle upon Tyne NE1 5JE

Tel: 0191 229 2770

Fax: 0191 229 2795
Email: info@northstarei.com

www.northstarei.com

Access to Finance Guide 2010 13

 Finance North East
For Business Angel Fund
Equity Funding (Finance for Business Funds)

What are the size of deals? Type

£50k to £150k – most investments will be matched Equity
at the point of investment by private sector investors
(predominantly Business Angels).The fund will Size
actively engage with the region’s early stage £7.5m fund making
business community and the business angel investments generally
investor community in particular. between £50k and
£150k
Who can apply?
Most sectors are eligible. Area
North East of England
Where can I get more information?
The fund is managed by: Target
Rivers Capital Partners SMEs
16-18 Hood Street
Newcastle upon Tyne NE1 6JQ Availability
To 31/12/2014
Tel: 0191 230 6370
Fax: 0191 261 8884
Email: info@riverscap.com

www.riverscap.com

14 Access to Finance Guide 2010

 Finance North East
For Business Growth Fund

Equity Funding (Finance for Business Funds)

What are the size of deals? Type
£50k to £400k – the Fund Manager has the Equity & Mezzanine
discretion on the use of financial instruments but a
substantial proportion of the fund will be invested in Size
quasi-equity/mezzanine instruments. £20m fund making
investments between
Who can apply? £50k and £400k
Relatively mature companies at development and
growth stages in most sectors. Area
North East of England
Companies should mostly be revenue generating
and looking for growth. Target
Established SMEs
Where can I get more information?
The fund is managed by: Availability
NEL Fund Managers To 31/12/2014
Ground Floor,Victoria House,
Hampshire Court, Newcastle Business Park,
Newcastle upon Tyne NE4 7YJ

Tel: 0845 111 1850

Fax: 0845 111 1853
Email: enquiries@nel.co.uk

www.nel.co.uk

Access to Finance Guide 2010 15

 Finance North East
For Business Growth Plus Fund
Equity Funding (Finance for Business Funds)

What are the size of deals? Type

FW Capital can invest £350k to £1.25m in a single Debt & Equity
round. FW Capital also seeks to co-invest with banks,
venture capital houses, the public sector and Size
private investors such as business angels.The Fund £20m fund making
Manager will have the discretion on the use of quasi- investments between
equity type deals within mixed-instrument deals. £350k and £1.25m

Who can apply? Area

FW Capital invests in businesses with established North East of England
revenues that need an injection of development
capital to add impetus to their future growth plans. Target
Established SMEs
We typically invest In businesses that are:
n seeking to expand, invest in new infrastructure or Availability
purchase new equipment To 31/12/2014
n looking to buy into or acquire a business
n preparing for flotation
n implementing new technology or processes

Where can I get more information?

FW Capital Ltd
Cuthbert House, City Road, All Saints
Newcastle upon Tyne NE1 2ET

Tel: 0191 350 6310

Fax: 0191 350 6311
Email: info@fwcapital.co.uk

www.fwcapital.co.uk

16 Access to Finance Guide 2010

 Finance North East
For Business Proof of Concept Fund

Equity Funding (Finance for Business Funds)

What are the size of deals? Type
£20k to £100k but has the ability to complete follow- Convertible loans,
on investments generally limited to €200k. Equity

Who can apply? Size

The Fund Manager will work with the region’s £15m fund generally
universities, centres of excellence, individual making investments
entrepreneurs, technology start-ups and SMEs to between £20k and
develop new businesses or to fund specific, £100k
innovation projects which have the potential to
create new commercial opportunities for existing Area
businesses or universities. North East of England

Where can I get more information? Target

The fund is managed by: SMEs
NorthStar Equity Investors Ltd
5th Floor, Maybrook House, 27-35 Grainger Street Availability
Newcastle upon Tyne NE1 5JE To 31/12/2014

Tel: 0191 229 2770

Fax: 0191 229 2795
Email: info@northstarei.com

www.northstarei.com

Access to Finance Guide 2010 17

 Finance North East
For Business Technology Fund
Equity Funding (Finance for Business Funds)

What are the size of deals? Type

£50k to £1.25m. For investments greater than £750k, Equity and Quasi-
15% of the total investment round will need to be equity
matched by co-investors.The fund may also
consider investing in quasi-equity type investments, Size
e.g. mezzanine finance, for more mature £25m fund
technology companies.
Area
Who can apply? North East of England
Technology companies seeking finance at any
stage of their maturity, extending from proof of Target
concept and seed to development capital. SMEs

Where can I get more information? Availability

The fund is managed by: To 31/12/2014
IP Group plc
Suite 1, West One
Forth Banks
Newcastle upon Tyne
NE1 3PA

Tel: 0845 519 4112

Email: duncan.lowery@ipgroupplc.com

www.thenortheasttechnologyfund.com

18 Access to Finance Guide 2010

Finance For Business –
North East Creative
Content Fund

Equity Funding (Finance for Business Funds)

What are the size of deals? Type
Up to £250k. £2.4m co-investment
fund to invest in film,TV,
Who can apply? games, interactive
SMEs whose principal place of business or a media and music
material part of its operations is in the North East
Region. Area
North East of England
Where can I get more information?
NorthStar Equity Investors Ltd Target
5th Floor, Maybrook House SMEs
27-35 Grainger Street
Newcastle upon Tyne NE1 5JE Availability
Up to 2012
Tel: 0191 229 2770
Fax: 0191 229 2795
Email: info@northstarei.com

www.northstarei.com

Northern Film & Media has partnered up with

NorthStar Equity Investors to manage the fund.
For further information, interested parties are
welcome to discuss their proposal with Northern
Film & Media.

Tel: 0191 275 5930

www.northernmedia.org

Access to Finance Guide 2010 19

 Aspire Fund
Equity Funding

What are the size of deals? Type

£100k to £1m – the fund will provide up to 50% of Equity
funding for any one investment alongside other
private investors, new to the business. Size
£12.5m
Who can apply?
The objective of the fund is to increase the number Area
of successful women-led businesses within the UK, UK
ensuring that those with real potential to succeed
are not held back through lack of growth capital. Target
Female led SMEs
Women-led businesses are measured by the
composition of the board, ownership of equity and Availability
the roles of senior female executives. On-going

Where can I get more information?

Capital for Enterprise Ltd
1 Broadfield Close, Broadfield Business Park
Sheffield S8 0XN

Tel: 0114 206 2131

Fax: 0114 206 2146
Email: aspire@capitalforenterprise.gov.uk

www.capitalforenterprise.gov.uk

20 Access to Finance Guide 2010

Bridges Ventures

Equity Funding
What are the size of deals? Type
The fund can invest up to £10m. Bridges Ventures Equity and risk capital
will act as sole or lead investor and will syndicate funding
where appropriate.
Size
Bridges Ventures invests in (a) businesses that are Upto £10m
located in the most deprived 25% of the country
and can deliver a strong multiplier effect as they Target
spend money and recruit in these areas and (b) SMEs, start-up,
businesses whose social impact is intrinsic to what expansion, MBO, MBI
they do with a focus on the environment,
healthcare and education sectors. Availability
On-going
Who can apply?
SMEs connected with the local economy by
employment, market or supply chain. Bridges
Ventures is a generalist venture capital fund
which seeks high-growth opportunities which will
include start-ups, early stage expansion finance,
MBOs or MBIs.

Where can I get more information?

Bridges Ventures Ltd
1 Craven Hill, London W2 3EN

Tel: 020 7262 5566

Fax: 020 7262 6389
Email: info@bridgesventures.com

www. bridgesventures.com

Access to Finance Guide 2010 21

 Carbon Trust
Investments Ltd
Equity Funding

What are the size of deals? Type

Carbon Trust invests its own funds – leveraged with Equity – Co-investment
other private funding – into the UK’s clean
technology industry.They are one of the UK’s Area
leading co-investors in clean technology. UK wide

Seed Funding – funding size – typically up to £500k Target

alongside other commercial investors on an equal SMEs – early stage to
basis. Total investment is typically between £500k mature clean energy
and £1.5m. businesses

Venture Capital Funding – typical investment Availability

between £250k and £3m alongside other On-going
commercial investors on an equal basis. Total
investment is typically between £500k – £10m.

Both must co-invest alongside other commercial

investors.

Where can I get more information?

The Carbon Trust
6th Floor, 5 New Street Square
London EC4A 3BF

Tel: 0800 085 2005

Email: info@carbontrust.co.uk

www.carbontrust.co.uk/emerging-technologies/
help-develop-my-company/investment/
Pages/funds.aspx

22 Access to Finance Guide 2010

Coalfields Funds

Equity Funding
What are the size of deals? Type
£40k to £1m. Below £500k the fund will co-invest with Equity
other providers to 50% of the total funding
requirement. Size
£20m
Who can apply?
SMEs where either their principal place of business, Area
a significant proportion of their workforce or where it An eligible coalfield
will bring material economic benefit to an eligible ward based in England
coalfield ward – see web site to confirm location.
Target
Where can I get more information? SMEs
Enterprise Ventures Ltd
Preston Office Availability
Preston Technology Management Centre On-going
Marsh Lane
Preston PR1 8UQ

Tel: 01772 270570

www.coalfieldsfunds.co.uk

Access to Finance Guide 2010 23

 Enterprise Capital
Funds (ECFs)
Equity Funding

Where can I get more information? Type

Enterprise Capital Funds (ECFs) address a market Equity
weakness in the provision of equity finance to SMEs
by using Government funding alongside private Size
sector investment to establish funds that operate Up to £2m
within the ‘equity gap’.
Area
In April 2008, responsibility for the management of UK
ECFs along with Department of Business, Innovation
and Skills (BIS) was transferred to a new body, Target
Capital for Enterprise Limited SMEs
www.capitalforenterprise.gov.uk.

ECFs are managed by eight Fund Managers;

a selection of which are listed below for SMEs
to contact.

IQ Capital Fund The Amadeus

Tel: 01223 34 56 16
www.iqcapital.co.uk
21st Century
Sustainable Technology
Growth Fund
Tel: 020 7583 3503
www.e-synergy.com
The Seraphim Capital
Fund
Tel: 0207 089 2318
www.seraphimcapital.
co.uk
Enterprise Fund
Tel: 01223 707 000
www.amadeuscapital.
com
The Catapult Growth
Fund
Tel: 0116 238 8200
www.catapult-vm.co.uk
MMC Venture
Managers
Tel: 020 7938 2220
www.mmcventures.com

24 Access to Finance Guide 2010

NESTA

Equity Funding
What are the size of deals? Type
£250k to £2m – as lead investor or part of a Equity
syndicate.
Area
Who can apply? Must be based in the
Ambitious entrepreneurs running early stage UK
technology based companies that are targeting
large markets. Target
SMEs with technical
Where can I get more information? innovation
NESTA
1 Plough Place Availability
London EC4A 1DE On-going

Tel: 020 7438 2500

Email: nesta@nesta.org.uk

www.nesta.org/investments

Access to Finance Guide 2010 25

 NVM Private Equity
Limited – Venture
Capital Funds
Equity Funding

What are the size of deals? Type

£2m to £10m. Long-term equity and
loan funding
Who can apply?
Businesses seeking funding for organic growth, Size
acquisitions or changes of ownership. £175m funds under
management
Where can I get more information?
NVM Private Equity Limited Area
Northumberland House, Princess Square UK
Newcastle upon Tyne NE1 8ER
Target
Tel: 0191 244 6000 Unquoted companies
Email: new@nvm.co.uk
Availability
www.nvm.co.uk On-going

26 Access to Finance Guide 2010

RisingStars
Growth Fund

Equity Funding
What are the size of deals? Type
£50k to £1m. Equity

The fund is looking for proof of concept Area

opportunities where the first round might be up to All UK
£350k drawn down in tranches.The funds have the
capacity to follow on up to £1m and beyond and Target
will often seek to co-invest. SMEs

Who can apply? Availability

Seed and start-up technology companies or pre- On-going
IPO with unique technologies and exceptional
prospects.

Where can I get more information?

Enterprise Ventures Limited
Preston Office
Preston Technology Management Centre
Marsh Lane
Preston PR1 8UQ

Tel: 01772 270 570

You can contact EV Group directly through their

website: www.evgroup.uk.com

Access to Finance Guide 2010 27

 UK Steel Enterprise
Limited
Equity Funding

What are the size of deals? Type

Share capital and share/loan packages up Unsecured debt and
to £750k. mixed loan and equity
packages
Small loans are generally unsecured.
Area
Funding could also be made available from the Tees Valley and
Enterprise Finance Guarantee Scheme. Derwentside

Who can apply? Target

Finance is available for start-ups, expansions, SMEs (excluding retail)
acquisitions and buy-ins/buy-outs across many
business sectors including manufacturing and Availability
related services. On-going

Where can I get more information?

UK Steel Enterprise Ltd
The Innovation Centre,Vienna Court
Kirkleatham Business Park, Redcar TS10 5SH

Tel: 01642 777888

Fax: 01642 777999
Email: north@uksteelenterprise.co.uk

www.uksteelenterprise.co.uk

28 Access to Finance Guide 2010

Carbon Trust
Loan Fund

Loans
What are the size of deals? Type
£3k to £500k. Loan

The loans are unsecured and interest free for four Area
years without arrangement fees. England, Wales and
Scotland
Who can apply?
SMEs who are profitable and have been trading for Target
at least 12 months and wish to invest in energy SMEs
efficient equipment/systems or carbon saving
projects. Availability
On-going
Where can I get more information?
The Carbon Trust
6th Floor, 5 New Street Square
London EC4A 3BF

Tel: 0800 085 2005

www.carbontrust.co.uk

Access to Finance Guide 2010 29

 Darlington Borough
Council – The Falchion
Fund
Loans

What are the size of deals? Type

£3k to £10k. Loan

Who can apply? Area

SMEs who employ up to 250 people and that have Darlington
additional sources of funding involved in a business
start-up and/or development/expansion project. Target
SMEs and start-ups
The fund is unable to represent a sole funding
source. Availability
On-going
Where can I get more information?
Business Engagement Team
Darlington Borough Council
Town Hall, Darlington DL1 5QT

Tel: 01325 388 682

Fax:01325 388 900
Email: mike.toyne@darlington.gov.uk
Email: business.support@darlington.gov.uk

www.darlington.gov.uk/business

Loans are funded by Darlington Borough Council, HSBC Bank Plc

and British American Tobacco (BAT).

30 Access to Finance Guide 2010

Enterprise Finance
Guarantee

Loans
What are the size of deals? Type
£10k to £1m. Loan

Who can apply? Availability

This guarantee facility for SMEs (turnover below Until 31/03/2011
£25m) covers:

n new term loans (with terms of between 3 and

10 years)
n existing lending where lenders might not
otherwise refinance the debt
n conversion of part or all of an existing utilised
overdraft into a term loan in order to release
capacity in the overdraft to meet working capital
requirements

The guarantee will fund working capital and

investment by businesses seeking to grow or
develop subject to conditions detailed on the BIS
website below.

Where can I get more information?

Department for Business, Innovation and Skills
1 Victoria Street
London SW1H 0ET

Tel: 020 7215 5000

www.berr.gov.uk/whatwedo/enterprise/finance/
efg/page37607.html

Further information on the Enterprise Finance

Guarantee can be accessed through all major
high street banks.

Access to Finance Guide 2010 31

 Five Lamps
Organisation
Loans

What are the size of deals? Type

£1k to £20k. Loan

Who can apply? Area

Sole traders that have been trading for up to 12 Tees Valley area
months and that are unable to access loans from covering Stockton,
mainstream sources. Funding can be used for Middlesbrough, Redcar
equipment such as tools, machinery, stock, rent, and Cleveland,
insurance and marketing material. Darlington and
Hartlepool
Where can I get more information?
The Five Lamps Organisation Target
Eldon Street,Thornaby SMEs
Stockton-on-Tees TS17 7DJ
Availability
Tel: 01642 608 316 On-going
Freephone: 0800 458 0120
Email: info@fivelamps.org.uk

www.fivelamps.org.uk

32 Access to Finance Guide 2010

PNE Group
Loan Fund

Loans
What are the size of deals? Type
Up to £5k. Start up finance of up
to £5k is available over
Who can apply? a maximum of
All loans are made to individuals and not Limited 36 months. Businesses
Companies. Directors of Limited Companies can which have
apply in their personal capacity. commenced trading
are not eligible
Applicants must be 18 years of age, unemployed
and have to demonstrate some degree of social, Area
educational or financial disadvantage to qualify for Tyne & Wear,
consideration (for example, if funding cannot be Northumberland and
obtained from a traditional lender). North Durham

Applications will be accepted either direct to the Target

Loan Fund or from those clients of recognised Start up micro
Enterprise Agencies, who will submit the completed businesses only
application to The Loan Fund Manager at Project
North East together with a letter of Availability
recommendation. The Loan Fund has
limited resources, and it
Where can I get more information? must be understood
PNE Group from the outset that
Business Support Centre, 7-15 Pink Lane “going through the
Newcastle upon Tyne NE1 5DW process” does not
guarantee success.The
Tel: 0191 230 6401or 230 6403 decision whether or not
Email: loans@pne.org to offer a loan is made
by an independent
www.pne.org panel of Trustees whose
decision is final

Access to Finance Guide 2010 33

 Small Loans for Business
Regional Enterprise
Loan Fund (RELF)
Loans

What are the size of deals? Type

Limited Company – £3k to £25k. Unsecured matched
Sole Trader or Partnership – £3k to £15k. loan – can provide up
to 50% of total funding
Who can apply? package
Start-up and expanding businesses which are
unable to fully finance their borrowing requirement Typical term: 12 – 36
from traditional sources. Certain sectors and types months
of business are excluded – please visit our website
for more details. Loan is conditional
upon borrower
Not applicable for businesses seeking funding as engaging with a
part of a “rescue package”. mentor, at a highly
subsidised rate
Where can I get more information?
To find out more about the fund, check eligibility Size
criteria, and to download the application form, £1.8m
please visit: www.entrustrelf.co.uk
Area
Richard Charnley, Portfolio Executive, Entrust North East Region
Portman House, Portland Road
Newcastle upon Tyne NE2 1AQ Target
SMEs
Tel: 0191 244 4028
Email: r.charnley@entrust.co.uk Availability
Current
RELF is part of the Entrust Group of Business Services,
and part of Solutions for Business, the Government's
package of publicly funded business support
designed to help companies start and grow, and is
funded by Regional Development Agency, One
North East.

34 Access to Finance Guide 2010

Spirit of Enterprise
Loan Fund

Loans
What are the size of deals? Type
£1k to £5k. Loan (some limited
grant/loan support to
Who can apply? enable individuals to
People with a physical, sensory, learning disability engage with business
or mental health challenge. People from development support
disadvantaged communities, areas of multiple through Business Link
deprivation, offenders, veterans, 50+ and homeless, programmes)
with the aim of helping them into self-employment
or, if already operational, to develop their business. Area
North East of England
Where can I get more information?
Northern Pinetree Trust Target
The Pinetree Centre, Durham Road, Birtley Disabled,
County Durham DH3 2TD disadvantaged and
people with additional
Tel: 0191 492 8200 or complex support
Fax: 0191 410 0916 needs who wish to set
Email: manager@pinetree-centre.co.uk up businesses and
have been unable to
www.northernpinetreetrust.co.uk access mainstream
www.spiritofenterprise.info finance

Availability
On-going

Access to Finance Guide 2010 35

 Street North East
Loans

What are the size of deals? Type

£500 to £10k. Loan

Who can apply? Area

Existing self employed and micro businesses (less North East of England
than 10 employees) who are unable to access
mainstream finance and start-ups that can Target
demonstrate a positive cash-flow for at least six Micro/SMEs
months.
Availability
Where can I get more information? On-going
Street North East
Portman House, Portman Road
Newcastle upon Tyne NE2 1AQ

Tel: 0191 230 2080

Email: enquries@streetnortheast.co.uk

www.streetnortheast.co.uk

36 Access to Finance Guide 2010

Grant for Business
Investment (GBI)

Grants
What are the size of deals? Type
From £10k – no upper limit. Grant

Who can apply? Area

GBI is a discretionary grant which aims to North East of England
encourage capital investment in projects which
lead to long-term improvements in productivity, skills Target
and employment. Most manufacturing businesses SMEs
can apply, as service industry businesses that
supply nationally rather than locally. Applicants Availability
can be companies, partnerships or sole traders. On-going
Assistance can be provided to:

n establish a new business

n expand/modernise/rationalise an existing
business
n set up research and development facilities
n enable businesses to take the next step from
development to production

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/gbi.cfm

Access to Finance Guide 2010 37

 Grant for Research
& Development (GRD)
Grants

What are the size of deals? Type

£5k to £500k. Grant

Who can apply? Area

GRD is an umbrella term for a range of grants that North East of England
can provide support to help SMEs improve their
competitiveness by developing new products or Target
processes. SMEs of technology
based businesses
Project proposals are assessed against selection
criteria which include: Availability
On-going
n technological innovation
n level of technical
n commercial prospects
n need for the grant and business impact

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

38 Access to Finance Guide 2010

Grant for Research
& Development –
Proof of Market Grant

Grants
What are the size of deals? Type
£5k to £20k. Grant

Who can apply? Area

SMEs with fewer than 250 employees and with an North East of England
annual turnover of less than €50m or balance sheet
of less than €43m. Target
SMEs
Assistance for pre-R&D exploratory research on the
market and IP opportunity of an innovation idea. Availability
Grant rate of 60% with a project duration of 3 – 9 On-going
months.

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

Access to Finance Guide 2010 39

 Grant for Research
& Development –
Micro Grant
Grants

What are the size of deals? Type

£5k to £20k. Grant

Who can apply? Area

SMEs with fewer than 10 employees and with an North East of England
annual turnover of less than €2m or balance sheet
of less than €2m. Target
SMEs
Assistance for small cost project to develop a low-
cost prototype of a technologically innovative Availability
product or process. On-going

Grant rate of 45% with a project duration of 3 – 12

months.

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

40 Access to Finance Guide 2010

Grant for Research
& Development –
Research Grant

Grants
What are the size of deals? Type
£20k to £100k. Grant

Who can apply? Area

SMEs with fewer than 50 employees and with an North East of England
annual turnover of less than €10m or balance sheet
of less than €10m. Target
SMEs
Assistance to investigate technical and
commercial feasibility of innovative new Availability
technologies. Leading to early stage experimental On-going
model (not pre-production prototype).

Grant rate of 60% with a project duration of 6 – 18

months.

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham, SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

Access to Finance Guide 2010 41

 Grant for Research
& Development –
Development Grant
Grants

What are the size of deals? Type

£20k to £250k. Grant

Who can apply? Area

SMEs with fewer than 250 employees and with an North East of England
annual turnover of less than €50m or balance sheet
of less than €43m. Target
SMEs
Assistance to develop a pre-production
prototype/pilot plant of a new product or process, Availability
which involves a significant technological advance On-going
for that sector. Development projects will typically
produce a beta-prototype device.

Grant rate of 35% with a project duration of 6 – 36

months. If the awardee is a small company, the
grant percentage will be 40% of eligible costs.

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham, SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

42 Access to Finance Guide 2010

Grant for Research
& Development – Exceptional
Development Grant

Grants
What are the size of deals? Type
£250k to £500k. Grant

Who can apply? Area

SMEs with fewer than 250 employees and with an North East of England
annual turnover of less than €50m or balance sheet
of less than €43m. Target
SMEs
This grant is the same as the Development Grant
except the project will have a major effect on UK Availability
industry and is strategically important for the UK in On-going
one or more sectors.

Grant rate of 35% with a project duration of 6 – 36

months.

Where can I get more information?

Business Link in the North East
Spectrum 6, Spectrum Business Park, Seaham
Durham, SR7 7TT

Tel: 0845 600 9 006

Email:enquiries@businesslinknortheast.co.uk

www.onenortheast.co.uk/business/
finance/grd.cfm

Access to Finance Guide 2010 43

 Gateshead Council –
Enterprise and
Innovation Fund
Grants

What are the size of deals? Type

Regeneration Grant – equivalent of up to 50% of Grant
the first year’s non-domestic rates.
Area
Development Grant – up to a maximum of Central and parts
£20k available for projects that are developing of East Gateshead,
workspace for creative, design and Team Valley
engineering sectors.
Target
Business Start Up Grant – covering up to 50% of SMEs in sectors
eligible start-up costs for new businesses in covering creative,
Gateshead to help with the purchase of productive engineering, low-
equipment, ICT equipment including specialist carbon or renewable
software, other office equipment and energy businesses
improvements or alterations to business premises.
Availability
Where can I get more information? Current
Gateshead Council
Civic Centre, Regent Street
Gateshead NE8 1HH

Tel: 0191 433 2084

Email: economicdevelopment@gateshead.gov.uk

www.gateshead.gov.uk

44 Access to Finance Guide 2010

Hartlepool Borough
Council – Business
Grants

Grants
What are the size of deals? Type
Hartlepool Enterprise Development Fund invests Grant
up to £5k for start up and expansion.Assistance
offered to sole traders is up to £2k and other Area
businesses up to £5k. Hartlepool

Hartlepool Access to Markets Fund invests up to Target

£2.5k and offers funding of up to 50% for project SMEs
costs including marketing and websites.

Rates Equivalent Grant offers up to 50% of the first

year's business rates subject to a maximum of £10k.

Capital Investment Grant offers up to 50% of

eligible costs on plant and equipment up to a
maximum of £10k.

Jobs Creation Grant offers up to £1k per job

created for unemployed Hartlepool residents up to
a maximum of £10k.

ICT Grant Scheme offers up to a maximum of £2k

towards consultancy, software, capital equipment,
staff training, website development and R&D.

Where can I get more information?

Hartlepool Enterprise Centre
Brougham Terrace, Hartlepool TS24 8EY

Tel: 01429 867677

Email: enterprisecentre@hartlepool.gov.uk
www.investinhartlepool.com

Access to Finance Guide 2010 45

 Northumberland
County Council
Grants

There is a whole raft of support for businesses in the Area

Northumberland area which is accessed through Northumberland
the council and which also includes the Rural
Project Development Fund (RDPE) which covers: Target
Micro/SMEs
n micro-enterprise development
n natural and cultural assets
n sustainable communities
n tourism and recreation

Please refer to Page 47 for more information.

Where can I get more information?

David Baird
Property Development Officer
Northumberland County Council
County Hall, Morpeth
Northumberland NE61 2EF

Tel: 01670 534 169

Email: david.baird@northumberland.gov.uk

www.northumberland.gov.uk

46 Access to Finance Guide 2010

Rural Development
Programme for England
– Business Support

Grants
RDPE is the mechanism for delivering money Type
allocated to England from the EU and DEFRA via Grant
the European Fund for Rural Development from
2007 to 2013. Target
SMEs
Funding is targeted at making agriculture and
forestry more competitive and sustainable, through Availability
diversifying into new opportunities.The following Until 2013
support is available:

Micro-Business Development
www.rdpenortheast.co.uk/page/themes/
microenterprise.cfm

Collaborative Processing and Marketing Fund

www.rdpenortheast.co.uk/page/themes/
bioenergy.cfm

Land-Based Skills Programme

www.rdpenortheast.co.uk/page/themes/
sustainable_communities.cfm

Bioenergy Supply Chain Development

www.rdpenortheast.co.uk/page/themes/
sustainable_farming_forestry.cfm

Where can I get more information?

Tel: 0845 600 9006

www.onenortheast.co.uk/page/rural/rdpe.cfm

Access to Finance Guide 2010 47

 South Tyneside Council
– Business Grants
Grants

What are the size of deals? Type

Grant
Business Start-up Grant – of up to 50% of eligible
costs to a maximum of £3k can be awarded to pre- Area
start businesses. South Tyneside

Business Development Grants – of between £2.5k Target

and £25k are available to established businesses in SMEs
the borough (those trading for at least six months),
that can demonstrate the need for grant funding to Availability
support specific strategic and expansion projects. On-going

Micro loan Fund – provides loans of up to £15k (up

to £3k for pre-start business) with implementation
support provided by mentors.

Where can I get more information?

South Tyneside Council
Business Matters
25-27 Market Place, South Shields
Tyne & Wear NE33 1JH

Tel: 0845 460 33 33

Email: ideas@southtyneside.gov.uk

www.southtynesidemeansbusiness.co.uk

48 Access to Finance Guide 2010

Sunderland City
Council

Grants
The Council’s Business Investment Team co- Area
ordinate a range of financial incentives for Sunderland
businesses wishing to start-up, expand or relocate
and which are engaged in manufacturing and Target
related service industries (business to business, high SMEs
tech, e-business, etc).
Availability
In order to qualify, projects must meet certain criteria: On-going

n the business must be located in Sunderland or

looking to relocate to Sunderland
n the business must demonstrate viability
n all applications must be made before
committing to any project
n in most cases projects must create new jobs
n the final award will depend on the number of
jobs created

Where can I get more information?

Sunderland City Council
Business Investment Team
Room 3.22
Civic Centre, Burdon Road
Sunderland SR2 7DN

Tel: 0191 561 1210

Fax: 0191 553 1180
Email: business.investment@sunderland.gov.uk

www.investinsunderland.com

Access to Finance Guide 2010 49

 Business Support
Business Support
In addition to equity finance, loans
and grants, there is a range of
business support activities which are
focused on regional SMEs and are
designed to maximise the economic
development benefits deriving from
regional investment fund activity.
Current access to finance ‘soft-side’
support in the North East region
includes the following subsidised
products which are part of ‘Solutions
for Business’, the government’s
package of publicly funded business
support, enabling you to access
leading experts at affordable fees.
Business Link
Business Link – the Government’s ‘one
stop’ business support service – also
gives customers fast access to the
right information to answer their
business concerns.
The independent advisers in Business
Link can help businesses to identify
the most appropriate course of
action, the right order to address their
needs and the best places to access
that help.
Business Link works with organisations
that have the necessary expertise to
deal with these enquiries and can
broker the customer to the most
appropriate source of advice or
50 Access
Accessto to
Finance
Finance
Guide
Guide
2010
2010
finance from either the public or
private sector. For example, local
authorities operate a range of
support and financial incentives,
some of which are covered in this
guide. However, as there can be
changes at short notice, please
contact Business Link for up to date
information on loans and grants in
your local authority area.
Business Link host an events portal
where you can find everything you
need to know about Business Link
events in the North East –
www.eventsnortheast.co.uk
Business Link can be contacted on
the phone – 0845 600 9 006, or
www.businesslink.gov.uk/northeast
Solutions for Business
Solutions for Business (SfB) is a
package of publicly funded business
support products and services
designed to help businesses start,
grow and succeed. Solutions for
Business products are simple to
understand and access, good value
for money and directed to where they
will have most impact to help
businesses grow.

The right advice, loan or grant – at the
right time – can make the world of
difference to a business.
The key Solutions for Business
products are described below.
Understanding Finance for Business
These free training modules and
workshops offer supplementary
support to SMEs.They are designed to
encourage individual and group
interaction and participation.This is
achieved through challenging you in
a relaxed environment without being
too overwhelming or confusing.
The workshops are designed to
demystify the aura that surrounds
finance and commercial acumen
workshops and provide a blend of
theory, discussion, group
presentations and experiential
applied learning all within a safe,
competitive and fun environment.
For further information please refer to
www.financeworkshops.co.uk or call
0191 261 3812.
Access to Finance Guide 2010
Business Support
Coaching for High Growth
This innovative programme is run by
Entrust and provides coaches or
mentors for SMEs via their network of
multiple providers who are matched
to specific business needs of the SME.
Their panel of highly experienced
mentors and coaches bring industry
experience, independence and
objectivity to your business ambitions
and goals; working with you to identify
opportunities; providing links to
sources of investment, and helping
you make tough decisions to achieve
accelerated growth.
They will help you to define your
needs, select the right change agent
and stay in touch afterwards to ensure
that you are getting the most out of
the programme.
To apply for a place on the Coaching
for High Growth Programme please
use the online application form at
www.entrust.co.uk and for further
information please contact Michelle
Rainbow at Entrust on 0191 244 4000
or email coaching@entrust.co.uk
51
 Business Support
Business Support
One North East also supports a
range of partners delivering
Solutions for Business that can help
businesses looking to develop and
grow such as Starting a High Growth
Business, Innovation Advice and
Guidance, Business Collaboration
Networks, Collaborative Research
and Development and Business
Growth: Specialist Facilities and
Environments.
North East of England Investment
Centre (NEEIC)
The North East England Investment
Centre (NEEIC) helps new and
existing businesses to develop and
grow. NEEIC administers a number of
Solutions for Business products –
such as Starting a High Growth
Business, Innovation Advice and
Guidance, Innovation Vouchers,
Train to Gain and RDPE Business
Support.
If you think you could benefit from its
help, firstly, please phone Business
Link for more information. An adviser
will assess your needs. If you are
eligible, they will support you
through the application process.
www.neeic.co.uk
Business Link on 0845 600 9 006
52 Access to Finance Guide 2010
Centre for Process Innovation (CPI)
CPI creates significant value for the
North East through managing and
facilitating a number of Economic
Support Projects, attracting inward
investment from the public and
private sectors.
Tel: 01642 455 340
www.uk-cpi.com
Centre of Excellence for Life
Sciences (CELS)
CELS offers a range of support and
commercial services to healthcare
and life science companies.
Tel: 0191 215 5025
www.celsgroup.com
Codeworks
Codeworks Connect provides
support in business development,
networking and promotion of digital
media and technology businesses.
Tel: 0191 556 1122
www.codeworks.net
Digital City
Digital City Business Growth Workshop
System is specifically geared towards
digital media, digital technologies
and creative businesses.The
specialized workshops cover all of the
most fundamental areas of business

growth from finance to sales to
pitching.
Tel: 01642 248 692
www.dcbusiness.eu
Sunderland Software City
Sunderland Software City was
designed to inspire and encourage
the growth of the software industry in
the region.They can assist in business
development, funding, workshops
and mentoring.
Tel: 0845 872 8575
www.sunderlandsoftwarecity.com
Newcastle Innovation Machine
Newcastle Innovation Machine gives
funding support for science based
companies, access to contacts and
networks across the region, property
allocation along with advice on areas www.narec.co.uk
such as IP, licensing, law, finance and
marketing.
Tel: 0191 231 2200
www.newcastlesciencecity.com
Entrepreneurs’ Forum
The Forum provides a powerful cross-
sector network to help new and
developing businesses through
sharing practical experiences via
their open workshops, inspirational
speakers and private mentoring.
Access to Finance Guide 2010
Business Support
Tel: 0870 8502233
www.entrepreneursforum.net
NAREC
The New and Renewable Energy
Centre (Narec) at Blyth offers business
support for new and renewable
energy projects for SMEs.The project
will cover a wide range of micro-
generation such as solar thermal,
photovoltaic, heat pumps, combined
heat and power systems, wind
turbines and biomass.
SME support focuses on Innovation
advice and guidance to develop new
and emerging micro-renewable
technologies as well as providing
support to encourage micro-
renewable uptake.
Tel: 01670 359 555
Northern Film & Media
Northern Film & Media is the screen
agency for the North East of England,
providing the link between talent,
experts and the market. It has
partnered up with NorthStar Equity
Investors to manage the £2.4m
Finance for Business North East
Creative Content fund. It hosts a
range of professional training events,
including commissioning editors and
industry experts to the region,
53
 Business Support
Business Support
organising workshops, seminars and
courses with industry-standard
training providers such as Producers
Alliance for Cinema and Television
(PACT), Indie Training Fund (ITF)
and National Film and Television
School (NFTS).
Please refer to their website
www.northernmedia.org or call
0191 275 5930.
Other organisations that offer help
and support to SMEs with soft side
initiative include:
Connect North East
Connect North East facilitates
experience exchange, peer to peer
learning, and introductions to
professional services, business
support and investment for early
stage science and technology start-
up companies.
It also co-ordinates workshops,
seminars, conferences, debates,
mentoring and coaching facilities,
advice and information provision and
networking opportunities which focus
on business growth.
For more information, please contact:
Connect North East,
c/o Bridge Club Ltd.
54 Access to Finance Guide 2010
Telephone: 0191 230 5742
Email: t.allen@bridgeclubnorth.com
www.connectnortheast.com
Finance Tree
Finance Tree offers many services to
the SME. From assessing your
proposal and business plan right
through to introducing you to
investors.They run training workshops
and seminars that focus on the uses
of different sources of investment such
as venture capital with the aim to
improve your chances of attracting
investment.They are well networked
within the region and provide a range
of experience in the commercial
exploitation of science and
technology, technology transfer and
the creation and management of
spin-outs and new company creation
in and around research environments.
For more information, visit their website
www.financetree.biz or call them on
0191 230 6370.
Business Angels
Business Angels are private
individuals who invariably have
been successful in business and
who are capable of investing their
own money, mainly in the form of
equity, in businesses.
Typically, they invest in the early
stage investment cycle up to £250k
and can either invest individually or
they may choose to join an angel
syndicate and thus invest through
a pooled resource with other like-
minded investors.
Businesses seeking business angel
investment can either approach a
Business Angel Network or go directly
to a Business Angel Syndicate.
Business Angel Networks will
have angels as members to
whom the network will regularly
circulate investment opportunities
and also events will be held at
which businesses will have the
opportunity to make a pitch to
an audience of investors.
Access to Finance Guide 2010
Business Angels
Useful contacts:
British Business Angels Association
(BBAA)
The British Business Angels Association
is similarly useful for information
regarding angel investment and
sourcing angel networks. It boasts a
publicly searchable online directory
of angel networks, early stage VC
funds and professional service
providers, as well as useful information
for entrepreneurs and investors.
BBAA
New City Court
20 St Thomas Street
London
SE1 9RS
Tel: 0207 089 2305
Email: info@bbaa.org.uk
www.bbaa.org.uk
British Venture Capital Association
(BVCA)
The British Venture Capital Association
is a useful source of information about
raising venture capital and lists
member organisations which provide
funding in most sectors and stages.
The BVCA is the industry body and
public policy advocate for the private
equity and venture capital industry in
the UK.
55
 Business Angels
Business Angels
BVCA
1st Floor North
Brettenham House
Lancaster Place
London WC2E 7EN
Tel: 020 7420 1800
Email: bvca@bvca.co.uk
www.bvca.co.uk
AngelNet – E-Synergy
Members of AngelNet will have
opportunities to invest in UK-wide
business propositions alongside
E-Synergy’s established private
investor base and its existing stable
of funds that total more than £30m.
The AngelNet service is open to
individual, professional and corporate
investors who are seeking to invest
sums of £5k to £500k in early stage
ventures with major profits potential. It
will work across the UK, seeking to
match investors with targeted
investment opportunities fitting their
criteria.
There is a customised matching
service to help identify appropriate
opportunities according to range of
selection criteria such as industry
sector or geographical location.
As E-Synergy is in partnership with
Rivers Capital Partners, you can
56 Access to Finance Guide 2010
obtain information from their
Newcastle address below:
River Capital Partners
16-18 Hood Street
Newcastle upon Tyne NE1 6JQ
Tel: 0191 230 6370
Email: enquiries@e-synergy.com
www.e-synergy.com
Business Investor Group (BiG)
BiG provides equity finance and
business support expertise to
established owner-managers, or
potential managers, who can
demonstrate growth potential,
coupled with good management
skills or an established track record.
BiG is able to provide equity funding
from £10k to £1m and more. BiG will
help businesses of any size, and it will
syndicate with other financial
partners to offer the best total,
balanced-funding package.
During the last twelve years, BiG has
assisted over 47 companies (80% of
which are still progressing) and has
invested more than £14.5m. It has
created a vital regional funding
source. It has given direction to small
and medium size enterprises in the
‘North East of England’ who are
looking to start-up or develop their

growth. BiG members also assist in
developing entry or exit strategies.
Because of BiG’s expertise and high
profile networking programme, its
members are exceptionally well
placed to understand the problems
of the entrepreneur. BiG members are
also able to provide a wide range of
professional skills to assist companies,
both pre-and post-investment.
Business Investors Group
PO Box 198
Chester-le-Street
DH3 9AE
Business Angels
through Beer & Young Ltd, Beer
Property Finance – mezzanine and
equity finance for commercial and
residential property.The firm has
offices throughout the UK, including
Edinburgh and Belfast.
Rod Beer
Painters’ Hall
9 Little Trinity Lane
London
EC4V 2AD
Tel: 020 7329 4884
Email: beer@beerandpartners.com
www.beerandpartners.com

Tel: 0870 7669341 Braveheart Ventures

Email: funds@big-angels.co.uk The Group has grown steadily year on
www.big-angels.co.uk year since forming in 1997 and now
comprises a management team of 20
Beer & Partners and a client base of around 100.
Beer & Partners is a leading source of Service offerings include bespoke EIS
venture capital and business angel portfolios, fund management,
investment for growing SME investment facilitation and
businesses in the UK.They have an management services.With close
impressive network of Business Angels, relationships with a number of leading
High Net Worth private investors and universities and innovation centres,
secured lenders. With £120m of funds and access to a wide variety of
having been raised to date on nearly emerging commercial opportunities
400 deals. 51 projects were funded in at early stages, Braveheart makes
2009 and it boasts 1,928 active investments in young, emerging,
investors.They provide help with your unlisted companies where there is
business plan and assistance potential for significant growth through
throughout the fund raising process, successful commercialisation of IP.
recovery/restructuring investment

Access to Finance Guide 2010 57

 Business Angels
Business Angels
The Group’s headquarters are in Perth
and there are regional offices in
Yorkshire and central London.
Braveheart Investment Group
c/o Viking Fund Managers
Metic House, Ripley Drive
Normanton
West Yorkshire
WF6 1QT
Tel: 01924 227 200
Email: mail@braveheart-
ventures.co.uk
www.braveheart-ventures.co.uk
Hotspur Capital Partners
The network was set up in November
2007 and is an investor group making
venture capital investments of which
seven have been completed to date.
Investors are high net worth
individuals who have been/are
successful entrepreneurs themselves
building and then exiting businesses.
Deal flow and investors come through
introductions. Hotspur does not have
a website or disclose its investors.
Its goal is to invest in three businesses
per annum which have global
potential which are then supported
and realised over a three year period.
58 Access to Finance Guide 2010
Contact: Colin Willis –
Managing Director
Email: colin.willis@hotspurcp.com
Tiger Corporate Finance Ltd
Tiger Corporate Finance is an
independent corporate finance
house specialising in deal origination
and equity finance which was formed
by Roland Tate in 2005, following
several years with PWC and KPMG
where he was Director of Corporate
Finance, gaining considerable
experience in mergers and
acquisitions.
There are 12 members actively
seeking opportunities in most sectors.
Contact: Roland Tate – Director
Tel: 0191 252 1823
Yorkshire Association of Business
Angels (YABA)
YABA is a unique regional forum
which brings together the finance
and expertise of Business Angels
with entrepreneurs and their
business ideas.
This angel network was formed in
1995 and its membership has
grown to over 170 angel and
associate members.
It regularly holds investment forums

Business Angels
at various venues throughout
Yorkshire and Humberside where
entrepreneurs present their ideas to
an audience of Business Angels and
some of the most influential business
leaders in the region.

In addition, the introduction service

enables businesses to publish an
executive summary on a secure login
area of the YABA website.To see the
benefits of being part of YABA please
visit the website www.yaba.org.uk

Yorkshire Association of Business Angels

1 Hornbeam House, Hornbeam Park
Hookstone Road, Harrogate
HG2 8QT

Tel: 01423 810149

Email: admin@yaba.org.uk
www.yaba.org.uk

Access to Finance Guide 2010 59

 Index
Index

A
Accelerator Fund, Finance for Business North East 13
Access to Market Fund, Hartlepool 45
Accessing Funding 11
Amadeus Enterprise Fund – see ECFs 24
AngelNet 56
Angel Fund, Finance for Business North East 14
Aspire Fund 20

B
Beer & Partners 57
Bioenergy Supply Chain Development – see RDPE 47
Braveheart Ventures Ltd 57
Bridge Club 54
Bridges Ventures Ltd 21
British Business Angel Association (BBAA) 55
British Venture Capital Association (BVCA) 55
Business Angels 55-59
Business Development Grant, South Tyneside 48
Business Investors Group (BIG) 56
Business Link North East 12, 50, 52
Business Start Up Grant, Gateshead 44
Business Start Up Grant, South Tyneside 48
Business Support 50-54

C
Capital Investment Grant, Hartlepool 45
Carbon Trust Investments Ltd 22
Carbon Trust Loan Fund 29
Catapult Growth Fund – see ECFs 24
Centre for Process Innovation (CPI) 52
Centre of Excellence for Life Sciences (CELS) 52
Coaching for High Growth Programme 51
Coalfields Funds 23
Codeworks 52
Collaborative Processing & Marketing Fund – see RDPE 47

60 Access to Finance Guide 2010

CONNECT North East 54
Creative Content Fund, Finance for Business North East 19

D
Darlington Borough Council – see the Falchion Fund 30
Derwentside – see UK Steel Enterprise Ltd 28
Development Grant, Gateshead 44
Development Grant (GRD) 42
Development Grant, Exceptional (GRD) 43
Digital City 52

Index
Disabled or Disadvantaged – see Spirit of Enterprise Loan Fund 35

E
Enterprise and Innovation Fund – see Gateshead Council Grants 44
Enterprise Capital Funds (ECFs) 24
Enterprise Development Fund, Hartlepool 45
Enterprise Finance Guarantee 31
Enterprise Ventures Ltd 23, 27
Entrepreneurs’ Forum 53
Entrust 34, 51
Equity Funding 13-28
E-Synergy 24, 56
Exceptional Development Grant, (GRD) 43

F
Falchion Fund 30
Female led SMEs – see Aspire Fund 20
Film 19,53
Finance for Business North East Funds 13-19
Finance Tree 54
Five Lamps Organisation 32
FW Capital Ltd – see North East Growth Plus Fund 16

G
Games 19,53
Growth Fund, Finance for Business North East 15
Growth Plus Fund, Finance for Business North East 16
Growth Fund, RisingStars 27

Grants 37-49
Development Grant (GRD) 42
Exceptional Development Grant (GRD) 43
Gateshead Council Business Start up Grant 44
Gateshead Council Development Grant 44
Gateshead Council Regeneration Grant 44
GBI – Grant for Business Investment 37

Access to Finance Guide 2010 61

 GRD – Grant for Research & Development 38
Hartlepool Access to Markets Fund 45
Hartlepool Enterprise Development Fund 45
Hartlepool Rates Equivalent Grant 45
Hartlepool Capital Investment Grant 45
Hartlepool Jobs Creation Grant 45
Hartlepool ICT Grant Scheme 45
Micro Grant (GRD) 40
North East of England Investment Centre (NEEIC) 52
Northumberland County Council 46
Index

Proof of Market Grant (GRD) 39

Research Grant (GRD) 41
Rural Development Programme for England (RDPE) 47
South Tyneside Business Development Grant 48
South Tyneside Business Start-up Grant 48
Sunderland City Council 49

H
Hartlepool Borough Council Business Grants 45
Hotspur Capital Partners 58

I
ICT Grant Scheme, Hartlepool 45
Interactive Media 19,53
IP Group plc – see North East Technology Fund 18
IQ Capital Fund – see ECFs 24

J
JEREMIE - Joint European Resources for Micro to Medium Enterprises Initiative
See Finance for Business North East Funds 13-18
Jobs Creation Grant, Hartlepool 45

L
Land-Based Skills Programme – see RDPE 47

Loans 29-36
Carbon Trust Loan Fund 29
Enterprise Finance Guarantee 31
Falchion Fund – see Darlington Borough Council 30
Five Lamps Organisation 32
PNE Group Loan Fund 33
Regional Enterprise Loan Fund (RELF) 34
South Tyneside Micro Loan Fund 48
Spirit of Enterprise Loan Fund 35
Street North East 36

62 Access to Finance Guide 2010

M
Micro-Business Development – see RDPE 47
Micro Loan Fund, South Tyneside 48
Micro Grant (GRD) 40
Micro-renewable Energy – see NAREC 53
MMC Venture Managers – see ECFs 24
Music 19,53

Index
NAREC, New and Renewable Energy Centre 53
NEL Fund Managers – see North East Growth Fund 15
Newcastle Innovation Machine (Newcastle Science City) 53
NESTA 25
North East Accelerator Fund 13
North East Angel Fund 14
North East Creative Content Fund 19
North East Growth Fund 15
North East Growth Plus Fund 16
North East of England Investment Centre (NEEIC) 52
North East Proof of Concept Fund 17
North East Technology Fund 18
Northern Film & Media 19,53
Northern Pinetree Trust – see Spirit of Enterprise Fund 35
NorthStar Equity Investors 13,17,19
Northumberland County Council 46
NVM Private Equity Ltd - Venture Capital Funds 26

P
PNE Group Loan Fund 33
Proof of Concept Fund, North East Finance for Business 17
Proof of Market Grant (GRD) 39

R
Rates Equivalent Grant, Hartlepool 45
Regeneration Grant, Gateshead 44
Regional Enterprise Loan Fund (RELF) 34
Research and Development Grants 37-43
RisingStars Growth Fund 27
Rivers Capital Partners 14, 56
Rural Development Programme for England (RDPE) 47

S
Seraphim Capital Fund – see ECFs 24
Small Firms Loan Guarantee – see Enterprise Finance Guarantee 31
Small Loans for Business, Regional Enterprise Loan Fund (RELF) 34

Access to Finance Guide 2010 63

 Soft Side Business Support 50-54
Solutions for Business 11, 50
South Tyneside Business Development Grant 48
South Tyneside Business Start-up Grant 48
South Tyneside Micro Loan Fund 48
Spirit of Enterprise Loan Fund 35
Street North East 36
Sunderland City Council 49
Sunderland Software City 53
Index

T
21st Century Sustainable Technology Growth Fund – see ECFs 24
Technology Fund, North East Finance for Business 18
Tees Valley – see UK Steel Enterprise Ltd 28
Tiger Corporate Finance Ltd 58
TV 19,53

U
UK Steel Enterprise Ltd 28
Understanding Finance for Business Workshops 51

V
Viking Fund Managers 58

Y
Yorkshire Association of Business Angels (YABA) 58

64 Access to Finance Guide 2010

 Feedback
Equity Funding (Finance for Business Funds)
If anyone has any comments or
would like to make any future
contributions to this guide, please
email or write to us at:
North East Access to Finance Ltd
1 St James’ Gate
Newcastle upon Tyne
NE1 4AD
Email: info@nea2f.co.uk
www.nea2f.co.uk
66
This publication is a general guide
only. It has been prepared by North
East Access to Finance Ltd (NEA2F)
from information provided by the third
parties named in this guide.
NEA2F accepts no responsibility
for any actions taken or not taken
in reliance on or in connection with
this guide.
Where references or links (which
may not be active links) are made
to external publications or websites,
the views expressed are those of
the authors of those publications
or websites which are not necessarily
those of NEA2F and NEA2F accepts
no responsibility for the contents
or accuracy of those publications
or websites.
The information in the guide was
correct at the time of going to press
and that it may be subject to change.