First SMEs Benefit from Capital for Enterprise Fund
In Nottingham today, Business Secretary Lord Mandelson announced an investment of £2m from the Capital for Enterprise Fund to local firm KeTech.
A further £1m investment is being made in Glasgow-based Vamosa, which provides IT systems to businesses and the public sector.
Lord Mandelson said:
“Ambitious and innovative businesses like these are the lifeblood of the economy but tough credit conditions can make it difficult for them to invest in their future. The Government is committed to ensuring that viable companies have the finance they need to grow”.
Ensuring innovative British businesses can access this sort of risk capital is one of the key commitments from the Government’s industrial strategy, New Industry New Jobs. The £75m Capital for Enterprise Fund was created to help viable small and medium-sized businesses with genuine growth potential that would otherwise be unable to secure investment.
KeTech will receive £2m of equity funding from Octopus Investments, which manages £30m of the total £75m.
KeTech Group Chief Executive John Kearney said:
“Since the current economic crisis began, the lack of available credit, even to viable businesses such as KeTech, has significantly impaired our ability to keep growing. As a result, we turned to the Government for help.
“I am therefore delighted that the Octopus Capital for Enterprise Fund is injecting much-needed capital into KeTech. This will play a critical role in enabling us to secure profitable new contracts which regrettably, until now, we have been forced to turn away.”
Maven Capital Partners, which also manages £30m of the £75m fund, is investing £1m of equity funding in Vamosa.
Vamosa Managing Director George Knox said:
“With this investment, we will help to define the global Enterprise Content Governance sector.
“It is our vision for a Scottish business to ensure multi-national organisations and governments receive the highest return on investment from their content assets. Receiving this capital injection from Maven is a proof-point to the opportunities available to Vamosa.”
Founded in 1998, KeTech provides communication software and services to the rail industry. It also produces specialist detection systems for use in defence and emergency services markets, together with a range of building management systems. The firm has more than doubled its turnover to £16m since 2006 and it employs over 100 people at six UK sites.
Software firm Vamosa is based in Glasgow and also operates in London and the US. It offers a range and products to businesses and governments that help them to analyse, monitor and maintain all forms of business content. The company was founded in 1999 and has 36 employees.