North East Angel Fund
Investment for Entrepreneurs
The North East Angel Fund is a specialist early-stage seed fund for small businesses in the North East of England.
With £9 million capital it is one of a suite of funds established by North East Finance and forms part of the £142m Finance for Business funds in the region.
The main NE Angel Fund will typically invest between £50,000 and £150,000 in any one funding round. It can invest initially on its own but seeks to involve private investors whenever appropriate.
An average funding round could be £300,000 where the Angel Fund invests £100,000 alongside business angel and or other venture capital institutions.
We have now invested £9m of the capital into 66 businesses and completed, in cluding follow-ons over 120 deals.
The Fund also made smaller initial investments to pump-prime new-start and spin-out type business propositions where it sees the potential to help them on to further finance.
The Fund operates as a normal venture capital fund, with investment terms to match. Of course if you want a small business loan try the NE Micro Loan Fund that we also manage making loans from £1,000 up to £25,000
Who can apply
To be eligible for investment by the North East Angel Fund and the Micro Loan Fund you must be:
- Based in the North East of England
- A small or medium sized enterprise, an SME
- Looking for venture capital start-up or growth finance, this is not grant finance.
There is no particular bias towards a particular sector, we can invest in most business sectors from service businesses to manufacturing, technology or general industry including software and IT.
There are however some exclusions due to the ERDF (European Regional Development Funds) rules which apply to the Fund. These include retail, establishments providing generalised education, gambling, and agriculture and export.
The Fund can not fund undertakings in difficulty, insolvency, or take part in rescue or restructuring finance deals. Further, we can not provide replacement capital and, generally, management buy-outs or buy-ins are ineligible.
The Fund is looking to invest in companies with strong management teams, innovative products and services, a good market size, a scalable business model and an exit strategy.
We can not possibly set out all the criteria on this site so to discuss the eligibility of your investment proposal please contact one of Rivers Capital
For more details contact us at:
Tel: 0191 230 6370 or 01642 903 902