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Profile Spring 2007 Newsletter

South Yorkshire businesses to ‘reap' the benefits from pilot fund

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Seedcorn Fund

Innovative and technologically minded businesses are set to reap the benefits of a new £4.6 million fund piloted in South Yorkshire.

The Seedcorn Fund aims to invest into early stage technology and knowledge-based businesses in South Yorkshire over the next two years.

The Fund will be available to help companies which have the potential to create an impact upon their chosen marketplace through unique technologies, with the promise of dynamic development and the potential for high yield returns.

Filling a significant gap in the financing market, the Seedcorn Fund will benefit ventures which may be seen as too high risk by mainstream investors, offering a secure future for innovation in the region.

The fund provides two key areas of investment. The first is the Proof of Concept with up to £75,000 available to start-up businesses which have a technically proven product but need to fix their position in the market.

The second part of the fund is called Commercialisation - which will place follow-on investment in tranches of up to a total of £500,000. This will be invested into businesses which are likely to have made some progress in their market but need further investment to become established and move into profit.

Jonathan Dixon, Deputy Chief Executive of South Yorkshire Investment Fund (SYIF), said: "Just like our other funds, the Seedcorn Fund will be run on sound commercial lines with all the discipline of a traditional fund. For SYIF, it will help us to fill the gap that we have for investment in innovative, early stage businesses.

"The new fund will also fill the gap in the local finance market for ventures that are often seen as too risky by mainstream finance providers. For South Yorkshire, it will help to attract and retain the kind of businesses that will shape our economy for many years to come."

For more information on the fund please contact Jonathan Dixon, Deputy Chief Executive of SYIF on 01709 386392 or email jonathand@syif.com. Alternatively, for an application form, email application@syif.com

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Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund can provide seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provides access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

For further details please contact Suzanne Tinkler, SYIF Marketing Manager, on 01709 386 381.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).