New investment fund for Greater Manchester’s early-stage innovators

Growth Company to back early-stage innovators with new investment fund

The Growth Company (GC) is launching a new investment fund for early-stage technology and innovation firms in Greater Manchester.

GC has developed the GM Co Investment Fund as a successor of the Co Angel Investment Service, which has to date facilitated £15.6m worth of investment into 19 early stage, high growth businesses.

The new fund, part of the Greater Manchester Combined Authority’s support for the early stage investment market, integrates with existing GC business finance and support services.

It will back funding rounds of between £200k and £2m with up to £150k of its own capital, while leveraging cash from angels and approved investment partners.

Ultimately, the fund will aim to bring up to £15m of investment to Greater Manchester over the next three years.

Business Finance Solutions (BFS), the GC’s in-house fund manager, will deliver the fund.

BFS director Paul Breen said: “We know the issues that early stage innovative businesses face in securing capital to get their ideas off the ground, while also understanding the expectations and needs of private investors when they are looking to evaluate opportunities.”

“The GM Co Investment Fund, coupled with the business support infrastructure that now operates across GM, gives us a unique approach to bring businesses and angels together – by investing our own equity from the Co Fund; by de-risking the opportunity and giving the investment community the confidence to add their equity to the deal as our partners; and by supporting the businesses with follow on funding as they grow and develop.”

He continued: “Every year the GM tech and innovation sectors attract a growing level of investment and this new Co Investment Fund will enable us to continue and build on this trend across GM, creating market leading businesses and new jobs as well as profitable opportunities for investors.”