Midven, the privately owned venture capital fund manager that
concentrates its investments on the West Midlands, has reported an
80% growth in its level of investments in small and medium sized
enterprises in the first six months of 2011.
In the first half of 2011, Midven's £18m Exceed - Midlands
Advantage Fund invested in four separate businesses - compared to
just one business in the first half of 2010. Meanwhile, its Early
Advantage Fund supported nine businesses - compared to six
businesses in the first half of 2010.
Midven, which manages five funds with some £61m under
management, invests in high growth prospect businesses across a
range of sectors including software, telecommunications, services,
healthcare and medical technology, engineering and
manufacturing.
Midven has also reported a 33% increase in the number of
'follow-on' investments to support further growth.
"It's been an encouraging first half. The level of enquiries has
been growing in part fuelled by an increasing confidence in the
region as a place in which to develop successful
businesses.
"Equity investment is being viewed as an alternative to debt but
we would actively encourage more companies to take advantage of the
venture and expansion funds that are available," said Roger Wood, a
director of Midven.
"We have never been busier with a significant number of new
investments in the pipeline and a level of enquiries from companies
requiring investment right through to the end of the year. The
challenge for us is to identify the real growth opportunities - and
that means we need more businesses coming forward. Supporting SMEs
and early stage businesses is fundamental to this region's growth
and prosperity. The more companies we can help get off the starting
blocks and performing strongly, the better," said Mr Wood.
Midven's figures build on those from the BVCA which revealed
that in 2010, the West Midlands outperformed the traditionally
buoyant south east in terms of percentage growth of investment
activity. Some £1 billion was invested in the region in 2010,
compared with about £1.25 billion in the south east.
"The region's growth has been significant. In 2009, the
investment level for the West Midlands was around £0.4
billion and whilst it grew in 2010, that of the south east fell. It
would appear from our own figures for 2011, that the growth trend
in investment is continuing," said Mr Wood.
For more information about Midven, please visit their website
here: www.midven.co.uk