Small businesses in search of venture capital were given a boost today when the first Regional Venture Capital Funds (RVCF) were launched in the East Midlands (Ј20m) and the North East (Ј15 million). Accountants and business advisers PKF, who were appointed by the Small Business Service (SBS) to advise the DTI, says it will encourage more entrepreneurs to take the plunge starting new businesses and provide a huge boost to existing small businesses.
Funds are being created in each of the nine regional development regions in England varying in size from Ј15 million with around Ј235 million to be invested over the nine funds. The funds can invest up to Ј250,000 as an initial equity investment and a further Ј250,000 as a follow on investment.