Funding Opportunities
South East Growth Fund
For companies able to achieve significant growth
The South East Growth Fund (SEGF) is a £30m venture capital fund committed to investing in fast growing small and medium-sized enterprises (SMEs) in South East England. The South East Growth Fund is managed by West Midlands Enterprise Ltd.
Most small businesses want to become more successful, to do this they often require more capital. Experience suggests that obtaining funds is a demanding process as the opportunities are fragmented and sometimes complex. SEMN seeks to improve the perception through explaining the key issues to consider and options available.
Types of funding include free capital, loans and equity investment. Sources may include schemes and funds administered by regional agencies, Government and international agencies including Universities, introduced below.
Free capital is scarce, sometime available to start-up companies through donations by friends and family: more usually this high-risk capital is obtained as an interest-free loan, or exchanged for a small percentage of equity.
An additional source of free capital is in the form of Research and Development Tax Credits, the biggest single funding mechanism for business R&D provided by the Government. This tax relief can help you fund the technological advances you need to keep your company competitive, by reducing your tax bill or providing you with cash. About 5,500 companies claim per year and £1.8bn has been claimed since 2000, over half of this by SMEs. For detailed information on how R&D Tax Credits can help you, and the rules visit www.dti.gov.uk/innovation/randd you will learn more from case studies at Your tax advisor or accountant will be able to help you.
Loan options. There are a number of loan options available, including from friends, family, directors' loans and banks.
CommercialiSE has been announced as the programme for the South East that links University Knowledge with business expertise to deliver and integrated framework of funding and support. Finance South East (FSE) are the appointed fund manager. This funding escalator provides proof of concept funding, seed funding, business training, mentoring and an Executives register. The aim of the escalator is to back at least 100 new ideas every year at the concept and feasibility stage, leading to stellar successes demonstrating exceptional growth potential and attracting substantial private venture capital. FSE will make investments contingent on the appropriate commercialisation support to address any gaps in the quality of the management teams. The scheme is open for applications from creative entrepreneurs and businesses located in the region. CommercialiseSE Update
In addition, companies can source loans through the Small Firms Loan Guarantee scheme and the South East regions' Accelerator Fund managed by Finance South East. You can obtain information on how these funds may help you at www.financesoutheast.com/ourfunds/.Employees can obtain Career Development Loans from central Government.
The Small Firms Loan Guarantee can help small companies borrow money from banks. More information be found at www.businesslink.gov.uk alternatively speak with your bank to obtain details of the scheme.
Career Development Loans are provided by Government to employees who wish to improve their skills. Loans of up to £3,000 are available for employees who work less than 30 hours per week in order that they can study. www.direct.gov.uk/cdl
Equity can be traded to raise capital, and this may arise at many stages of company development. Sources of equity capital may commence with investment from Business Angels, Venture Capital Funds, and through Initial Public Offering and Stock Market Listing. An review on funds invested in the UK and Ireland in 2006 features internet and mobile service, is provided by Ascendant.
Report intro
Page one
Page two
There are a number of Projects and programmes run to finance part of the total cost of a company's development. These include Selective Finance for Investment in England (SFIE), regional Grants for Research and Development, Government Collaborative Research and Development, and Government Innovation Platforms.
SFIE is available to companies operating in a limited number of locations in the South East, where their presence is strategically important. The South East England Development Agency (SEEDA) provide an introduction at www.seeda.co.uk/Work_in_the_Region/
Grants for Research and Development is managed by SEEDA, and these are available at four levels, with micro awards of up to £20,000 rising through research, development and up to exceptional awards of £500,000. Companies are required to fund some 50% of the total project cost. For more information visit www.seeda.co.uk/Work_in_the_Region/Funding_&_Advice
DTI Collaborative Research and Development funding awards are made through calls, held twice each year. Bids are invited by the DTI to specific calls for technology advances, deemed priority by the Technology Strategy Board. There are three levels of funding; typically awards are made in excess of £500,000. For more information visit www.dti.gov.uk/innovation/
DTI Innovation Platforms are appointed by the Technology Strategy Board, in conjunction with the DTI. They provide a way of working for Government and business to generate more innovative solutions to major policy and societal challenges. Two business led pilot schemes have been established for Network Security and Intelligent Transport Systems. It is expected that a new scheme for Assistive Living will commence in 2007. More information is provided by is at www.dti.gov.uk/innovation/tech-priorities-uk/
Working with Universities can provide valuable research and knowledge transfer allowing companies to improve their competitiveness and productivity.
National Knowledge Transfer Partnerships are supported by 15 Government organisations www.ktponline.org.uk/
Follow on Funding. The Engineering and Physicasl Sciences Research Council follow-on Fund aims to help researchers bridge the funding gap between traditional research grants and commercial funding. Support is provided for the very early (pre-seed) stage of turning research outputs into a commercial proposition. After completion of the follow-on work, the prospective business idea should be in a much stronger position to secure commercial support from venture capital or seed funds. www.epsrc.ac.uk/ResearchFunding/Opportunities/KT/default.htm
Engineering Doctorate is a four-year postgraduate award intended for the UK's leading research engineers who want a managerial career in industry. It is a radical alternative to the traditional PhD, being better suited to the needs of industry, and providing a more vocationally oriented doctorate in engineering. www.epsrc.ac.uk/PostgraduateTraining/EngineeringDoctorates/default.htm
Collaborative Training awards are three and a half year postgraduate awards allocated to companies, Knowledge Transfer Networks and Regional Development Agencies. Their aim is to enable companies to take the lead in defining, and arranging, projects with an academic partner of their choice. The company provides a substantial financial contribution to the project and the student must spend at least 3 months, during the period of the award, at their premises. www.epsrc.ac.uk/PostgraduateTraining
Companies will benefit from utilizing the Lambert Toolkit a set of model agreements be drawn up to assist Universities and industry, particularly SMEs (Small and Medium Enterprises), to collaborate more effectively There are five model agreements resulting from that recommendation, each providing a different approach in the key area of who is to own, and have the right to exploit, the intellectual property in the results or outcome of the collaborative project. For more information visit www.innovation.gov.uk/lambertagreements/
International opportunities are facilitated by UK Trade and Investment, who provide a number of packages to help companies do business internationally.
Passport to Export is the flagship programme, providing training, planning and ongoing support needed to begin a successful export operation.Overseas Market Introduction Service provides low cost international market intelligence.
Tradeshow Access Programme provides grants to attend designated and company selected international shows.
Information on all these schemes is located at www.uktradeinvest.gov.uk
European Funding Programmes can be complex and long-term yet very rewarding for companies. There are a number of programmes, for which details are emerging and details are made available by SEEDA www.seeda.co.uk/Work_in_the_Region/
The European Social Fund is designed to strengthen economic and social cohesion in the European region. A new programme will be launched in 2007 runining to 2013.
Interreg is a European programme supporting and funding inter-regional collaboration across Europe. A new programme will run from 2007 to 2013. www.interregiii.org.uk/
Framework 7 Programme is the European Union's fund for Research and Development. With an allocation of €72 billion, the fund will cover nine areas, health; food, agriculture and biotechnology; information and communication technologies; nanoscience, nanotechnologies, materials and new production techniques; energy; environment; transport; socio-economic sciences and the humanities; and, security and space research.
The total for ICT will be €9.1 billion made up of 7 challenges and future emerging technologies; network and services infrastructure; cognitive systems, robotics and interaction; components, systems, engineering; digital libraries and content; sustainable and personalised healthcare; mobility, environment, energy; ICT for independent living and inclusion; and, future and emerging technologies.
The South East Digital Content Knowledge Network supported and funded by SEEDA is facilitated by SEMN. The community comprises micro, macro, applied research knowledge base, local authority and the third sector. Special Interest Groups have been selected by the community to effect new and exciting collaborations, some of which will apply for resources available through FP7. For more information on the knowledge network visit www.semn.org.uk/knowledge/
More information can be found at http://fp6uk.ost.gov.uk/
The Competitiveness and Innovation Programme (CIP) has some €4 billion available to meet the objectives to allow businesses to create more and better jobs; ensure knowledge and innovation are the beating heart of Europe; and, ensure Europe is a more attractive place to invest and work. http://ec.europa.eu/enterprise/
In England there are Lottery Funding Programmes dispensed by 8 funders; Arts Council England; Awards for All; Big Lottery Fund; Heritage Lottery Fund; the National Endowment for Science Technology and the Arts; Sport England; UK Film Council; and, UK Sport. Lottery funders normally expect an applicant to contribute towards the cost of a project or to find additional funding or contributions from a private or other source. This is normally in cash but sometimes you may be able to provide 'in kind' contributions, for example staff or volunteer time, materials and so on. More information can be found at www.lotteryfunding.org.uk/england.htm
Websites for further information provided by organisations providing support, including:-
Manufacturing Advisory Service
Overview (National Website)
Specific South East Website
Business Link
Overview (National Website)
Hampshire & IoW
Surrey
Sussex (East & West)
Kent
Oxford, Milton Keynes & Buckinghamshire