Home > News & Events > September 2002 > News Article

Fund Invests In South Yorkshire's Future Growth

Published: 11th September 2002

Large Picture

New deal: Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund (left) with Mike Pound, Managing Director of Qualsys, the first company to be supported by the Fund.

The South Yorkshire Investment Fund is laying the foundations for future growth in the region and has already released over £1.4 million to business.

Both established and start-up companies require a whole raft of support services if they are to help secure the region's economic revival.

These already exist in a range of Government backed business support agencies but shrewd commercial investment is required if these businesses are to flourish.

South Yorkshire Investment Fund has signalled its strong appetite for backing growing business in the region. It has already completed sixteen loans and investments, amounting to a total of £1.4m.

Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund says: "Because we understand the nature of South Yorkshire's business community and smaller businesses in particular we are well placed to advise and invest in growing businesses."

The Fund provides development and risk capital ranging from £15,000 to £500,000 to businesses in, or prepared to relocate to, South Yorkshire.

It offers two key products, one of which is an unsecured loan, ranging from £15k to £50k. There is no need to give a personal guarantee and effective interest rates are from as little as 3%.

The second product is an equity-linked package, ranging from £50k to £500k where South Yorkshire Investment Fund takes a minority stake in the business.

The equity-linked package, with its competitive fees, is designed for new or existing businesses with potential for rapid expansion. Investments can be made as a mix of ordinary and preference shares or subordinated loan stock.

A unique feature of the Fund is its Mentorbank project, which provides subsidised mentoring support to help management teams grow the businesses more profitably.

Mr Goulbourn added: "We are committed to further developing the South Yorkshire economy and helping companies grow through shrewd commercial lending. Our door is very much open and we are keen to discuss investment opportunities with entrepreneurs in the region."

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).