Mercia invests £15m in North East in 2022

Mercia Asset Management, one of the UK’s most active venture capital providers invested £15m in North East businesses during 2022.

During the year Mercia also successfully exited one of its earlier investments, Consett-based EV charging firm Elmtronics, when the business was acquired by Mer of Norway.

Mercia, which is one of the longest-established VCs in the North, provides funding from a range of sources including the North East Venture Fund (NEVF), the Northern Powerhouse Investment Fund (NPIF), and its own funds and invests mainly in the regions outside London.

Ian Wilson, who leads Mercia’s Newcastle office, says: “Venture capital plays an important role in developing the industries of the future but with the majority of funding focused on London, the regions continue to be underserved. Mercia aims to address that gap.

“After several years of investing in Newcastle, we are now seeing the results, with some of the businesses we have backed emerging as leaders in their field and attracting attention from international buyers or investors.

“Despite the economic outlook, we see lots of opportunity in the North East, with many exciting new businesses and cutting-edge technologies. While some of the other funders have become more risk averse, Mercia will continue to invest throughout 2023 and we look forward to supporting many more businesses in the region.”

Sean Hutchinson at British Business Bank, said: “Through the Northern Powerhouse Investment Fund, Mercia is driving forward crucial investment, providing transformational funding opportunities for businesses such as Tees Valley-based Nova Pangaea, and Salesfire.

“Throughout 2023, companies will be looking to secure access to finance to help them take their businesses to the next level, and it is no doubt that NPIF – Mercia Equity Finance will be pivotal in realising these goals.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

By Mark Adair – Correspondent, Bdaily