North East Accelerate Fund makes strong start

A new regional investment fund has seen fast uptake.

The North East Accelerate Fund has attracted more than 50 applications within its first three weeks, signalling strong early demand from ambitious founders across the region. 

The £35 million fund, managed by Mercia Ventures, aims to support early-stage businesses with investments of up to £1 million. 

Accelerate forms part of the wider £350 million North East Fund announced last month by North East mayor Kim McGuinness.

Assessments are already underway, with the first deals expected to complete early in the new year. 

Ian Wilson, fund principal at Mercia Ventures’ Newcastle office, said: “The North East Accelerate Fund has quickly gained traction with businesses in the region, highlighting the strong demand for capital. 

“We have worked hard to fast track applications through the pipeline and the first deals are already progressing. 

“We want to encourage even more ambitious founders to consider how equity investment can help them innovate and fulfil their potential.”

The new fund complements the previous North East Venture Fund, which helped scale several successful regional companies across electric vehicle infrastructure, safety software, biotech and energy consultancy. 

Since opening its Newcastle office in 2018, Mercia Ventures has invested more than £40 million in local businesses, attracted a further £45 million from other investors, as well as contributed to the creation of over 500 jobs.

To prepare for delivering the Accelerate Fund, the venture capital and investment firm has strengthened its Newcastle team with two new appointments, with Connor Murphy transitioning from the company’s debt team and Owen Conquest joining from UNW. 

They will work alongside Ian and investment director Chris McCourt. 

Ian added: “We’re looking for ambitious businesses with cutting-edge technologies and services that address a clear market need, and play to regional strengths such as life sciences, software, engineering and electrification. 

“We look forward to working with them to grow their business and drive the next generation of North East success stories.”

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