North East projects win £2m for angel investor pilot scheme

A new pilot funding programme to encourage Business Angels in the regions to invest in innovative SMEs has awarded £2m to two North-based projects.

A total of £3m has been shared across three angel investor partners (AIPs) as part of the programme from Innovate UK, part of UK Research and Innovation.

A consortium led by Sunderland-based North East Business and Innovation Centre (BIC), has received £1m from Innovate UK to support the growth of local angel networks across the North East, Yorkshire and North West.

The programme, which partners with the Innovation SuperNetwork, Leeds-based North Invest and the national UK Business Angels Association, will encourage investment in early stage companies.

Northstar Ventures, one of the most active early stage investors in the country, has also secured £1m to work with start-up businesses, focusing on spin outs from North East universities, to help them secure angel investment and grant funding to accelerate their growth potential at an earlier stage.

The scheme is designed to increase the pool of regional angel investors prepared to consider investing in earlier stage businesses in participating regions, and provide grants to businesses to deliver innovation projects on a long-term basis.

Paul McEldon, Chief Executive of the North East BIC, commented: “We are delighted to be able to pilot the Regional Angel Investment Accelerator in the North of England to stimulate and grow the angel community.

“Our programmes support technology businesses at the forefront of innovation but we need to proactively develop an engaged and diverse early stage investment community in our regions to allow these businesses to grow and scale up. We are looking forward to working with Innovate UK, angel investors and all our partners to achieve this.”

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