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SYIF Seedcorn Fund update

Published: 4th December 2007

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Jonathan Dixon Deputy Chief Executive South Yorkshire Investment Fund.

We are pleased to announce that the £4.65m Seedcorn Fund which was launched as a pilot by South Yorkshire Investment Fund on 1 April 2007, has now been fully committed.  Although just £1.26m of the fund has actually been paid out to date (4 December 2007), the remaining £3.39m is scheduled for follow-on investment from now until 31 December 2008. 

Although we recognise that this may be disappointing for some, the demand for the Fund, which was much greater than anyone expected, does provide the strongest possible evidence that technology businesses are alive and kicking in South Yorkshire and many more are ready and willing to come here from elsewhere in the UK and overseas. 

The lessons learned from the management of the pilot find will be used to guide the design of a bigger, regional Seedcorn Fund that is expected to go live from 2008.  SYIF will continue to manage the Seedcorn investment portfolio to support clients and ensure that returns can be maximised, with the aim being to create a self-sustaining legacy fund, alongside those for the main SYIF funds.

In the meantime, we are exploring options to raise a little more money to extend the Seedcorn Fund for clients with interesting proposals that were just pipped to the post by the availability of funds.  We will let you know how we get on in this regard.  If you receive any new enquiries, our response for the timebeing is that we would like to take details and if available, see a business plan in preparation for a time in the future when Seedcorn investment will again be on offer. Clients may continue to be assured that all details will be treated in absolute confidence.

If you have any questions or comments, please do not hesitate to call me on 01709 386392 or 07900900490.

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).