£8m Fund To Boost New NI Businesses

There was official encouragement today as 'start-ups' and early stage businesses in Northern Ireland received a boost.

The newly appointed NI Finance Minister, Sammy Wilson, today officially launched a new £8million suite of initiatives to support enterprising new companies.

Speaking at the formal launch of the NISPO (Northern Ireland Spin Outs) initiative in Parliament Buildings, the Minister (pictured) said: "Promoting a stronger enterprise culture in Northern Ireland is a key component of our Programme for Government.

"We recognise that a strong knowledge-based economy requires skills across a broad range of business activities, with particular emphasis on the commercialisation of new ideas, products and services.

"The ability to fund innovation and move towards commercialisation is key," he said.

Fully funded by Invest Northern Ireland, the NISPO initiative includes a £5million venture capital fund which will focus on 'seed' and early stage businesses which have high growth potential.

Investments by the fund will typically be in the £50,000 to £250,000 deal size range and a £3million proof of concept fund has also been established to provide funding to very early, non university projects.

An important element of the initiative is an 'Enterprise Escalator' to assist promoters move from research to readiness for commercial funding and early stage capital.

The Minister said: "If young, technology companies are to achieve their full potential they must quickly develop skills in raising private equity, dealing with private investors, and structure their management teams for growth.

"The support of an experienced fund manager as investor and mentor can be invaluable," he said, noting that science and technology are "changing our world at a faster rate than ever before".

He said that universities and local companies have demonstrated that they can provide world class research.

"Government must seek to help companies convert this research into commercial applications which can in turn help to build world class companies, with high salaried jobs here in Northern Ireland," the Minister said, concluding: "ESynergy will join with our existing venture capital providers, Crescent Capital, Clarendon Fund Managers and Enterprise Equity, and with Halo, Northern Ireland's business angel network, to increase the provision of private sector-led equity finance to young knowledge-based companies."

Following a competitive tender process, ESynergy, a London-based firm has been selected to manage the NISPO suite of funds and services on behalf of Invest NI.

(BMcC/JM)