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Growth Capital Ventures Attracts a £57.5m Investment Fund

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May 18, 2017

UK fintech firm Growth Capital Ventures has attracted a £57.5m investment fund. The investment fund comes after its recent £1.1m investment from private equity, which helped the northeastern firm to create over ten jobs in the region. The latest investment will go towards helping local small businesses access capital in order to grow.

 

Major investment fund to boost growth

 

Growth Capital Ventures is a fintech firm operating in Newton Aycliffe in County Durham. The firms aim is to help local startups lift off and to turn ambitious business ideas into real profiting companies. The £57.5m fund is aimed primarily for businesses operating across Lancashire, Greater Manchester, Liverpool, Cumbria and Cheshire. Growth Capital Ventures will provide startups and SMEs equity financing in order to push their growth further.

 

The investment fund is operating in partnership with Maven Capital Partners. Maven is one of UK’s top private equity firms and it has previously invested in Growth Capital Ventures. The two firms partnered and created a series of Fund Mandates, which eventually helped secure the £57.5m investment from several partners.

 

Maven will be overseeing the Maven NPIF Equity Fund. The fintech firm’s main objective has been in supporting businesses during their investment rounds. It has helped businesses raise between £150,000 and £5m for growth and expansion purposes.

 

Craig Peterson, co-founder and chief operating officer at Growth Capital Ventures, said in the official statement, “These are exciting times for Growth Capital Ventures and for businesses in the North of England. There is now widespread recognition – not least on the part of government – of the enormous potential of the regions that drove the first industrial revolution.”

 

Bill Kennedy, partner at Maven, said the partnership is “an important part of our investment strategy”. Kennedy went n to say, “The Maven NPIF Equity Fund can co-invest alongside private investors to provide high growth businesses with capital to grow.”

 

Maven’s strong support for the fintech firm

 

The private equity firm has been keen to support the fintech firm. It has previously invested £1.1m to support Growth Capital Ventures’ operation. Following the previous investment, the firm was able to grow its workforce.

 

Peterson said the previous investment also allowed the firm to “recruit and strengthen the marketing, investment and tech teams”. The fintech firm has been able to create a strong network of retail, professional and institutional investors to provide capital for UK-based businesses. The platform, GrowthFunders, is likely to expand further as a result of the latest investment fund.

 

The UK government has been pushing its “northern powerhouse” agenda to support businesses across the country. Growth Capital Ventures and Maven’s investment fund is likely to calm some of the jitters surrounding the UK business and investment sector – Brexit has caused a mixed response, and different experts have different viewpoints regarding the impact leaving the European Union will have. Nonetheless, investments like these can certainly help instil short-term positivity into SMEs.

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