Communities and Local Government
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Direct contact 020 7944 4400- contactus@communities.gov.uk
- Cities and regions
- Regeneration
- Coalfield areas and communities
- The Coalfields Enterprise Fund
- Frequently asked questions on the Coalfield Enterprise Fund
Frequently asked questions on the Coalfield Enterprise Fund
What is the Coalfield Enterprise Fund?
The Coalfields Enterprise Fund is a commercial venture capital fund set up to support the growth of businesses and encourage entrepreneurship in England's former coalfields. The Fund will bring over £20m of new investment into these areas and stimulate new-start companies, established businesses seeking to expand and industrial diversification. The Fund's website can be found at: www.coalfields-enterprise-fund.co.uk and gives more detail on investment criteria and eligible wards.
Who runs the Coalfield Enterprise Fund?
It is managed by Enterprise Ventures Limited. There is further information on Enterprise Ventures below.
How is the Fund managed?
The Fund is managed by Enterprise Ventures Limited, who provide central administrative functions and make investment decisions using an Investment Committee.
How does the Fund invest in companies?
All investments are on a commercial basis and it will be the Fund Manager's job to ensure that the companies have the opportunity to grow and develop. The Fund Manager puts together individually tailored funding packages comprising debt and equity for the companies in which they invest. Investments range from £40,000 to £500,000. The maximum investment allowed in any one company is £500,000 (2.5%) of the Fund.
Are there any businesses the Fund cannot invest in?
The Fund is able to invest in most sectors although it is not able to provide funding to businesses operating in those sectors normally excluded under state aid rules, such as the car industry, shipping and textiles. Further information is available from the Fund Manager.
Do I have to be an ex-coalminer to apply?
No, you need to be either located in an eligible coalfield ward or employ people who live in an eligible coalfield ward.
How and to whom do I apply?
You should send your written proposal or a make a phone call to the Fund Manager to establish initial contact and initial discussions. The contact details are as follows:
Enterprise Ventures Ltd
Richard Bamford /Paul Taberner / Deborah Moon
Tel. 01772 270570
Can the Fund invest in businesses located in Wales and Scotland?
The Fund operates in the coalfield areas of England only. Full details of all eligible coalfield wards are available from the Fund Manager or via this site.
Will there be regional allocations?
The Fund is flexible in terms of where it is allocated. The Fund's Investment Committee make decisions on individual investments purely on their merits.
What is Enterprise Ventures?
Enterprise Ventures is a long established independent fund management company and a leading provider of venture capital to smaller unquoted companies in the North West of England. Further details may be found at their website at www.enterprise-ventures.co.uk .
What is Enterprise Ventures' track record?
Lancashire County Council established Enterprise Ventures in 1982, as part of its economic development and regeneration activities. Over the intervening years, Enterprise Ventures has grown significantly, managing Funds on behalf of both the public and private sectors, undertaking some 350 investments. It is expert in managing both commercial funds and development-type funds, and also in all the aftercare requirements of adding value to investee performance, assisting in strategic and operational development and enhanced sales and profit performance.
Enterprise Ventures has a track record in successfully raising and managing 15 Funds in its life to date and currently has six Funds under its management, with 120 investments.
Why has a separate Fund for the coalfield areas been established?
The Coalfields Task Force identified that there is a gap in the provision of risk capital for start-up and developing small and medium businesses in the former coalfield areas. The Fund is design to fill this gap. The former coalfields comprise some of the most deprived parts of England and we believe that a dedicated fund focusing on them is the best way to help secure and bring new, long term jobs to these areas. This was endorsed by the (then) ODPM Select Committee.
Wouldn't it be better to fund existing business support schemes or the local community?
It is important to see the Fund as part of a package of measures designed to bring prosperity to the former coalfields. The Fund will complement the work of the Coalfields Regeneration Trust that supports community groups and capacity build, and the regeneration of former coalfield sites by English Partnerships. This is why we have appointed experienced venture fund managers to ensure the fund works successfully along side other schemes to provide an integrated package of support.
What is the total size of the Fund?
The UK Government is providing £10m of funding. The Fund will operate as a co-investment Fund, which means that this will have to be matched by funding from other sources, so the total investment into the coalfields areas will be at least £20m. If the Fund is successful, further investments could be made by Government or other sources in due course.
How long will the Fund operate for?
The Fund is expected to operate for 10 years. The majority of the investments are likely to be made in the first five years.
How does the Fund know that the required matched funding will be available?
The Fund Manager has been appointed for their expertise in this area and are confident that there will be ample investors to match the Government funding.
How many jobs will the Fund create/secure?
The Fund's business plan anticipates that it will invest in about 100 companies. The number of jobs safeguarded or created will depend on the actual companies that benefit from the Fund. It is too difficult to estimate the exact figure at this early stage, but it is expected that the Fund will have a very positive effect on jobs created and /or secured.
What is Communities and Local Government's involvement in the Fund?
Communities and Local Government (then ODPM) provided £10m funding. The Fund has been set as a limited partnership in line with the British Venture Capital Fund model. Communities and Local Government will play a key role in influencing and monitoring the strategy and direction of the fund, while leaving the day to day management to the Fund Manager.
