Finance

Newcastle sits within the catchment area of the North East Local Enterprise Partnership (NELEP). The city is the most concentrated area in the North East for business activity, and companies choosing to invest and grow here are able to apply for finance from The North East Fund.

Invest Newcastle works closely with fund managers across the North East. Contact a member of the team to discuss your growth plans and request an introduction to a local fund manager.

 

The North East Fund

The North East Fund is a £120m investment programme available to SMEs in Newcastle and wider North East. Businesses eligible to apply for funding include existing operators as well as those look to relocate to the area.

There are five funds – each with a different investment focus. This provide a broader offer to SMEs across various sectors and at different stages of growth.

Innovation Fund

 

The Innovation Fund looks for strong teams with scalable opportunities and invests up to £500,000 by way of loans or equity. Where possible, it provides further investment to support accelerated growth.

If funding of more than £500,000 is required, the fund managers work with SMEs to identify potential investors who may provide additional finance as part of a syndicate.

The fund is managed by Northstar Ventures.

Venture Fund

 

The Venture Fund can invest up to £1m at any stage in the business life cycle but is specifically looking for those firms which are engaged in innovation or developing disruptive business models.

Funding is available to all companies with high growth potential and also pre-start enterprises. The fund aims to provide a range of investment products, tailored to each specific requirement, including both equity and mezzanine debt. The fund can either act as the lead investor or participate in syndication deals with others.

Capital Development Fund

 

The Development Capital Fund can invest from £400,000 to £2 million to support established businesses via debt finance, mezzanine loans or equity investment to help fulfill their growth potential. The Fund targets dynamic companies with strong management teams and ambitious growth plans.

The funds can provide up to £15 million in a single transaction to finance development capital and MBOs.

The fund is managed by Maven Capital Partners (Maven).

Small Loan Fund

 

 

The Small Loan Fund backs small businesses with big plans. The Fund can support a wide variety of growth plans and typically advances loans of between £10,000 and £50,000 to support actively trading North East businesses. Businesses with a limited trading history are also eligible for support where a clear route to generating sales in the short term can be demonstrated.

Repeat financing or co-financing with other funders to support plans requiring a larger amount can also be arranged where appropriate. Funding is typically provided on an unsecured basis without the need for Director’s Guarantees.

The fund is managed by NEL Fund Managers.

Growth Capital Fund

 

The Growth Capital Fund backs ambitious businesses with investment of up to £500,000 to accelerate growth potential.  The Fund can support a wide variety of growth plans and targets established businesses with strong management teams. Bespoke funding packages can be tailored to individual business needs, typically via debt finance, mezzanine loans or equity investment.

Repeat financing or co-financing with other funders to support plans requiring more than £500,000 can also be arranged where appropriate. Funding is typically provided on an unsecured basis without the need for Director’s Guarantees.

The fund is managed by NEL Fund Managers.

Other finance guidance

Invest Newcastle is able to carry out searches on behalf of businesses using a bespoke online platform. The system allows us to identify a range of funding options based on company profile, social aims, growth stage, and other factors. Contact a member of the team to learn more.

Get in touch