This item was published during the term of a previous administration that ended in April 2007
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New equity fund to help companies grow
24/03/2005
A new equity fund to help Scotland's innovative
companies grow was announced by Enterprise Minister Jim
Wallace in Parliament today.
The Executive and Scottish Enterprise will each commit
£20 million to the fund to help close the equity gap often
faced by Scotland's innovative businesses.
The £40m contribution is intended to lever in additional
capital from the private sector and other sources - to
deliver a fund of significant scale.
The fund will build on the success of the £45 million
Co-Investment Fund, which was launched two years ago and
has supported a range of businesses requiring investment of
up to £2 million.
The Scottish business community have told Ministers that
the Co-Investment Fund has proved crucial in helping young,
cutting edge companies develop and grow.
Business demand has now been created for a new fund to
focus on enterprises which require investment of £2million
to £5 million to develop and grow.
Speaking during a debate on life sciences Mr Wallace
said :
"Our life science industry makes a major contribution to
the Executive's number one priority of growing the economy.
It is one of Scotland's success stories, providing high
quality jobs for thousands of people.
"We must continue to do all we can to drive forward the
success of this sector. Together, the two complementary
investment funds will help create the critical mass of life
sciences companies in Scotland that is fundamental to our
future success as a world player in the field.
"Closing the equity funding gap is one area where we
know the Executive can make a difference in growing life
science businesses.
"Our Co Investment Fund has already made a real
difference - it has helped close the equity gap in very
early stage investment for 41 companies, almost one-third
of these life sciences.
"We have been listening to our innovative businesses and
we know the Co-Investment Fund is working. However
technology companies are also telling us that there remains
a funding gap between £2 million and £5 million. This new
fund will make a big difference in meeting that gap.
"The global life science market is valued at $600
million and growing - the economic opportunities to exploit
Scotland's strengths and potential are huge and it is
important the Executive does all it can to achieve
this.
"Scotland has a reputation for making key breakthroughs
in health-related research. I am sure this new fund and
other Executive investment - including the £150 million for
ITI life sciences - will help ensure Scotland maintains and
builds on this reputation."