The NEDCF forms part of the £120m North East Fund, which is supported by the European Regional Development Fund and will invest across the seven local authorities of Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead, Sunderland and Durham. The Fund provides flexible equity and debt funding solutions to SMEs and can invest between £400,000 and £2 million in businesses looking for growth finance to accelerate their development.
The North East Development Capital Fund (NEDCF) offers an attractive alternative to traditional forms of SME finance or bank funding, providing investment capital of between £400,000 and £2m to help North East SMEs achieve their growth potential. Across the region there are dynamic, viable businesses with innovative product or service offerings, and led by high-calibre management teams, which are looking for the funding to help realise their potential. The success of those businesses will contribute to regional economic development, job creation and innovation.
The objective of NEDCF is to drive increased levels of investment in high-potential local businesses, by offering flexible funding options that will support them in developing new products, entering new markets or expanding their current operations (the finance available cannot be used to fund acquisitions). Whilst the Fund is primarily focused on established businesses, investment may also be available for start-ups where the business case supports it.
Whether it is because a company cannot access bank funding, needs a more flexible form of finance tailored to its growth plans, or simply also needs access to business insight and expertise as it expands, NEDCF finance can be used in a variety of scenarios and is likely to suit the aspirations of many high-growth businesses.
Maven's North East investment team, based out of Newcastle and Durham, has many years’ experience in SME investment and helping management teams fulfil their companies' growth potential. The support offered to each company is about much more than simply finance, with Maven’s executives also providing strategic and operational input throughout the time of investment, to ensure that the process of working with Maven is as effective and rewarding as possible.
In order to be eligible for NEDCF funding, a business:
NEDCF funding is available for established businesses and is not targeting any specific sectors. However, there are certain restrictions which prohibit funding in sectors including pure real estate development activity, gambling related services & equipment and a number of other specific exclusions, and the Maven team can advise on these restrictions.
In order to fully appraise a funding application Maven will need to receive a detailed investment proposal covering the key points about your business and growth plans, including:
Download our Business Plan Checklist
The strength and experience of the management team ultimately drives business success, and is a key factor in assessing eligibility for funding. When a company is eligible, Maven executives aim to meet management as early in the process as possible, in order to build an understanding of the business, its product and markets, and the key people. Maven will also undertake both internal and external due diligence on any proposed investment.
Where that assessment process is successful, and Maven has access to all of the necessary information, the aim is to deliver a NEDCF funding package tailored to suit the growth requirements of your business.