Fund boosts Rotherham Company with Angel's Help
Published: 31st March 2003
Business Angel Don Green with Michael Flanagan from Advanced Sewer Products studying the new design of drain stopper with John Sarrington and Lynne Martin looking on from South Yorkshire Investment Fund.
South Yorkshire Investment Fund (SYIF) along with a syndicate from the Funds ’ business angels network, Capital Network, has backed a Rotherham company with a £95,000 investment.
The investment will allow Advanced Sewer Products Limited the opportunity to bring an innovative new design of drain stopper to the construction industry.
The patented product has overcome many of the traditional problems of the slow and messy installation of existing drains bungs. It is much quicker to install and is more stable in the pipe. It can be retrieved without entering the manhole, avoiding a torrent of sewerage that fills the chamber when the bung is released.
Michael Flanagan, Managing Director of Advanced Sewer Products, said: "The Fund have been extremely helpful in providing this loan, which in combination with the business angels investment, will help take the product to market and will make its public debut in June 2003.
"We are currently looking for distributors and agents for overseas markets and we expect to take a major share of this niche market."
In addition to the SYIF loan, the company received funding from a syndicate of business angels, headed by Don Green.
Mr Green said: "I have been elected as the lead member of this, the first Capital Network syndicate. Personally I have been looking at opportunities for investment in the area for some time, and Advanced Sewer Products are a company with a strong business plan and great potential."
The business angels syndicate arose from a recent SYIF organised Capital Network event where businesses seek funding from people looking to invest in fast growing businesses.
Tony Goulbourn, Chief Executive of South Yorkshire Investment Fund Ltd,
said: "We are delighted to be able to support Advanced Sewer Products in this way. It is a new company offering a genuinely innovative product. It is also good to see investors arising as a result of the Capital Network Events, something we are keen to promote.
"The Fund has a number of strands which promote the launch and growth of small businesses. The Capital Network team not only works closely with investors keen to see their money work hard for them but also with our investment managers - it is all part of building sustainable businesses for the future.
The Fund provides development and risk capital ranging from £15k to £1m to businesses in, or prepared to relocate to, South Yorkshire.
It offers two key products, one of which is loans ranging from £15k to £150k with effective annual interest rates from as little as 3% per annum.
The second product is an equity-linked package, ranging from £50k to £1m where the 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 way the Fund can help businesses is the Mentorbank project, which provides subsidised mentoring support to help management teams grow the business more profitable.
The Fund’s products are designed to support businesses through critical stages of growth. From start through to major expansion, the fund will provide financial support. If a business is looking to start up, invest in new technology or equipment, enter new markets or locate into South Yorkshire it should call South Yorkshire Investment Fund first.
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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).