New finance venture to boost businesses
Minister for Regional Economic Development and Coordination, Rosie Winterton, has launched a new £90 million venture capital and loan fund which will boost business growth in Yorkshire and the Humber.
Finance Yorkshire, supported by Yorkshire Forward, will invest in businesses across the region and is set to complete a four-year investment phase by 2014.
Rosie Winterton joined more than 300 local businesses, including corporate financiers, advisers, accountants and solicitors, at the launch of Finance Yorkshire at the Aspire in Leeds.
Rosie Winterton said: "The recession has presented significant challenges for many people and businesses in Yorkshire, so I'm delighted to formally launch this new investment fund at such a crucial time in the region's recovery.
“Alongside other Government support measures, this fund will help drive economic growth across Yorkshire and the Humber by providing finance to hundreds of small and medium-sized businesses and start-ups, helping them to flourish and creating thousands of new jobs."
Finance Yorkshire builds on the success of the now fully invested Partnership Investment Finance (PIF), which invested £42 million for qualifying businesses, and the South Yorkshire Investment Fund (SYIF), which invested £60 million in South Yorkshire.
James Newman chairman of Finance Yorkshire said: “Approximately 98 per cent of companies are small and medium sized enterprises (SMEs). That figure really brought home to me how important this fund is to the economy. That is what Finance Yorkshire is here to do, support SMEs.
"Every company, especially a new one, needs to have a mission and a vision. Our mission is to provide access for SMEs who are short of finance. If we are able to do this, and stimulate demand – then we can stimulate the region’s economy in turn.”
Finance Yorkshire’s successful event follows the launch of the Yorkshire and Humber Understanding Finance for Business programme this week in Leeds.
The £3million programme, supported by Yorkshire Forward, aims to provide high growth businesses in the region with the knowledge, advice, tools and resources to be investment-ready to access funding from potential investors and existing funding streams.
Understanding Finance for Business will give companies the opportunity to work with industry experts who have a proven track record in dealing with companies to raise investment.
Rosie Winterton commented: “We need to make sure that companies know about the support available to help them prepare for investment and the Understanding Finance for Business is a great example of how this can help.
“By helping to make sure that local businesses put together high-quality investment propositions they are able to make sure they are investment-ready and also able to take advantage of programmes like the Finance Yorkshire Fund.”
Terry Hodgkinson, chair of Yorkshire Forward said: “Finance Yorkshire will be key to supporting Yorkshire and Humber’s small and medium-sized businesses to grow and prosper and will enable them to leverage significant investment into the region over the next four years; creating thousands of jobs along the way.
“This is a fund for the whole of the region and it will play a critical part in helping Yorkshire and Humber’s economic recovery over the coming months and years.”
Finance Yorkshire can provide seedcorn, loan and equity linked investments, ranging from £15,000 to £2m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme.
For more information about Finance Yorkshire, please visit www.finance-yorkshire.com or ring 0845 649 0000.
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire