Minister announces £250 million of Access to Finance funding to support start-ups and SMEs

Pictured (L-R) are Kieran Donoghue, CEO, Invest NI; Dr Caoimhe Archibald, Minister for the Economy; Ian Maxwell, Executive Director of Finance, Invest NI

Economy Minister Dr Caoimhe Archibald has launched a new round of Access to Finance funding from Invest NI.

The portfolio of three funds includes £100m from Invest NI and is expected to attract over £150m in private sector funding. As a result, a potential total investment of more than £250m will be made over the next 10 years.

Launching the new round of funding, Minister Archibald said: “In 2011, with many businesses struggling to access essential credit, Invest NI set up its Access to Finance Programme and it has safeguarded or created thousands of jobs. There is still a strong need for government intervention on this issue and so today we launch three new funds. This £100m public investment is expected to attract over £150 million in private finance, potentially resulting in a total investment of more than £250 million over the next 10 years.

“These funds will particularly support start-ups and SMEs. As the backbone of our economy, access to finance for these types of businesses is crucial.”

Since Invest NI's Access to Finance funds were launched in 2011, more than 1,250 businesses across the north have benefited, which has helped to create and safeguard over 5,000 jobs in the north, generating more than £500m.

Kieran Donoghue, CEO of Invest NI, said: “Since 2011, our Access to Finance initiative has bridged a gap in private sector funding and provided much-needed support to SMEs in Northern Ireland. Because of these funds, SMEs, start-ups and entrepreneurs have been able to break into new local and global markets, drive innovation, and support business expansion.

“Boosting business investment is one of six key objectives in Invest NI’s three-year Business Strategy. For this reason, we have committed £100m across three funds – two equity and one debt – to provide access to essential investment to help our local companies grow, export, and innovate.

“The scale of this funding will positively impact our economy long into the future, enabling us to grow the sustainable, competitive economy that Northern Ireland deserves.”

The funds operate on a commercial basis and are managed by FCA approved fund managers who have responsibility for all investment decisions.

The funds are:

• TechStart III: a £55m fund managed by TechStart Fund Managers, including a £7m Proof of Concept grant fund. It will help budding tech focussed entrepreneurs commercialise their innovative ideas.
• Co-Fund III:  a £39m fund managed by Clarendon Fund Managers. It will invest alongside private investors and business angels.
• Small Business Loan Fund III: a £6m fund managed by Ulster Community Finance which will provide loans of between £10,000 and £125,000 for established micro-businesses and SMEs.

Access to Finance is open to any business in Northern Ireland that meets the individual fund criteria. More information is available on each fund on investni.com