One fund manager is looking at investing in three potential businesses which want to relocate to the region and create dozens of new jobs.

And with a further 700 applications being considered the region's new £125m super fund is living up to its billing as a major job-creation driver.

The Finance for Business North East Fund, which was launched in January, has £125m to invest in regional businesses over the next five years with the aim of helping 850 companies create 5,000 new jobs.

So far 22 companies have received investment from the fund of £5.3m which has leveraged in a further £7m of private investment.

North East Finance, which manages the fund portfolio, has so far received almost 700 applications for loans and investments.

Andrew Mitchell, chief executive of North East Finance, said: "We have been delighted with both the quantity and the quality of the applications to the fund so far.

"There are lots of good businesses out there who are already benefitting from the fund and others who will shortly be benefitting from the fund."

FBNEF has been created with £62.5m from the European Investment Bank, £44.25m from the European Regional Development Fund 2007-13 and £18.25m from regional development agency One North East.

It is aimed at helping SMEs and start-ups across all business sectors with its six individual component funds tailored for more specific investment needs.

The first investment in April into Gateshead-based games development company Eutechnyx, which received £650,000, helped attract £5.2m from Dutch-based private equity firm Prime Technology Ventures. The cash is being used to create a new generation of free-to-play games which could see it double its North East workforce to 170.

A specialist North East engineering firm has turned to the region's most active business investor to help shape its future commercial development.

Wallsend-based Rotational Engineering designs and manufactures a range of rotational steel moulds that are predominantly used in the plastics market.

The business has recently brought a number of new contracts on board, and also has several other deals in the pipeline.

In order to be able to fully exploit these new and emerging commercial opportunities, it has sought and secured a new £75,000 investment from Finance for Business North East through the Growth Fund managed by regional fund management firm NEL Fund Managers Ltd.

Company secretary Pat Davidson says: "Despite the recession, we've managed to retain both a strong niche position in the market and a very skilled and experienced workforce, and this new investment gives us the capacity to capitalise on both things.

"The specialist services we provide means that we developed very strong, detailed client relationships, and our aim now is to maximise the commercial potential of these relationships through securing bigger and better contracts, as well as exploring how best we can properly compete in European markets.

"NEL were recommended to us by another local company, and their involvement has not only provided the financial investment we were looking for, but has also provided the imperative for us to review our business processes and identify how we can plan and operate our work even more effectively."

Simon Johnson, senior investment executive at NEL Find Managers, adds: "Rotational Engineering's design and manufacturing expertise gives it a very strong market position, one which can be even more successfully exploited with the delivery of the development plans in which we've invested."

After more than doubling its turnover in the last five years, one of the UK's leading coffin manufacturer's is focussing on securing further organic growth following a major investment.

Since moving into its Washington factory in 2005, JC Atkinson & Son has seen its annual turnover rise from £2.5m to £5.5m, and now supplies around ten per cent of the coffins (60,000) used across the UK every year.

The formation of a wholesale business alongside its primary manufacturing activity has been partially responsible for the firm's recent growth, along with an expansion of the company's UK-wide customer base of independent funeral directors and specialist supplier contracts with larger, household name funeral businesses.

JC Atkinson & Son has had a decade-long relationship with regional fund management firm NEL Fund Managers Ltd, and is utilising a new £150,000 investment from the Growth Fund that is managed by NEL as part of the Finance for Business North East Fund initiative to help put its ongoing development plans into action.

The launch of a range of new products within the next few months will also play a central part in the firm's future growth.

Managing director Julian Atkinson says: "The relationship that we've had with NEL over the years has remained fruitful for all parties, and the type of investments we've secured have matched our funding requirements very well.

"The organic growth that we've enjoyed in recent years means that we've always known exactly which direction we're moving in and what we need to do to reach the next milestone, and we believe continuing to follow this proven path will enable us to maintain our momentum in the years to come."

Jane Siddle, Investment Executive at NEL Fund Managers Ltd, adds: "JC Atkinson & Son is an excellent example of how successive rounds of investment capital can be used over a long period to help a business achieve different objectives at different stages of its development.

"It has succeeded by redefining the industry standards for quality, service and innovation, and the management team continues to show the sort of ambition, commitment and drive that is required to maintain commercial success over the long term."

A footwear business is stepping up its growth plans following a major investment into the South Shields firm from the £125m Finance for Business North East programme.

Mes Footwork, which allows buyers to design their own customised trainers, has received £27,000 to expand the burgeoning venture into a global force.

22 year-old owner, Matt Scott, said: "This investment will help drive the company forward, reaching a larger audience, creating more national and international sales and employing more local people.

"It's no secret that the current economic environment is tough, not just for us but for a lot of businesses. We have had a somewhat difficult and frustrating start to the year with opportunities to grow the business but without the funding to make it happen. Now that can change.

"We now have the right team to build a successful and sustainable business."

Mr. Scott now hopes to use the investment to expand the company's range of designs to 10 and upgrade its website, allowing customers greater input when designing their footwear.

The investment is the latest to be made from the North East Angel Fund, which is operated by Rivers Capital Partners Limited and managed by E-Synergy Limited. It is one of six funds that make up the Finance for Business Fund.

Last year the company received investment from North East Finance's pilot Design and Creative Fund when it was starting out.

Jonathan Gold, director of Rivers Capital Partners, who is joining the board of Mes Footwork, added: "This is an impressive company with a clear focus and high ambitions. Matt had already proved himself by making sales.

"We are seeing good demand for the North East Angel Fund but it is important that people who have good ideas are willing to see them through and do something about it."

The event will give SMEs throughout Sunderland the chance to find out how they can benefit from the new £125 million Finance for Business North East programme (FBNEF).

The groundbreaking fund is an exciting portfolio of six investment funds set up to drive economic growth by providing vital access to finance for hundreds of SMEs over the next five years.

The business breakfast will take place at the North East Business and Innovation Centre (BIC) in the city on Thursday June 10 beginning at 8.30am. It is organised by North East Finance (NEF) which is managing the FBNEF programme.

Andrew Mitchell, chief executive of NEF, said: “This is a perfect opportunity for Sunderland’s businesses to explore the growth and investment opportunities that are available on their doorstep. The fund is the first of its kind in England and will provide vital investment to hundreds of fast growing SMEs at a time when we are emerging from recession.

“Interest in the funds is already very good. The first investments have been made and there are many excellent businesses in Sunderland that can benefit. We’re delighted to be working with the BIC to spread the message to SMEs and entrepreneurs who will have the opportunity to speak to our fund managers and find out how they can benefit.”

For more information about the road show and to book a place at the event, please contact Stephen Warren at North East Finance on 0191 211 2300 or email: stephen.warren@northeastfinance.org

The Finance for Business North East Fund (FBNEF) was set up in January with the aim of helping around 850 companies create 5,000 jobs in this region over the new five years. It is the first such fund in the country.

So far North East Finance, which is co-ordinating investments through FBNEF’s six venture capital funds, say there have been over 500 enquiries – of which around a fifth are from firms looking to relocate to the region.

Andrew Mitchell, chief executive of North East Finance, said: “This development has the potential to be hugely beneficial to the region. The message is getting through across the UK that the North East is prepared to support growing and start-up businesses.

“Clearly in the past we have suffered from not having the venture capital funds available to support businesses but the new money has changed that perception.

“This is not about encouraging companies to come to the region so they can get funding. We are talking about companies which can establish a clear business case for investment from one of the funds, and then show their willingness to relocate to the North East.”

Newcastle-based North Star Equity Investors is managing two of the six funds and it says it has received a large number of enquiries from firms outside the region.

Its chief executive Marion Bernard said: “We are receiving enquiries from across the UK and internationally and this has major potential benefits for the region.

“If we can attract high quality global companies to set up in the region we may be able to help create a cluster of similar businesses around one business type leading to the development of global centres of expertise in the North East.”
Last year North Star invested £350,000 into Windsor-based retail price comparison website Cogenta Systems which led it to open a Newcastle base which will be a platform for its European expansion.

Barrie Hensby, chief executive at Newcastle-based NEL Fund Managers which runs another FBNEF fund, said: “Such outside interest clearly underpins the view of North East England as a region in which companies can see themselves thriving, and backs up the premise of the wider FBNEF scheme of enhancing the regional economy in a sustainable, long-term way.”

FBDNEF, originally named Jeremie, is funded with £62.5m from the European Investment Bank, £44.25m from the European Regional Development Fund 2007-2013, and £18.25m from regional development agency One North East.
Malcolm Page, One North East deputy chief executive, last night hailed the level of interest.

“The speed and reach of modern communications means that news of FBNEF has generated significant interest not just across the region but the UK as well,” he said. “It is inevitable that companies from outside the North East will express an interest in it – just as companies from across the UK have in the past gravitated towards venture capital funds delivered in London and south east England.”

He added: “The fund is solely focused on supporting North East businesses – we are primed to help up to 850 regional firms over the next five years which will spearhead new economic growth.”

The Finance for Business North East Fund - managed by North East Finance - is hosting the latest in its series of regional roadshows in Morpeth on Wednesday September 22.

The breakfast briefing will take place at The Corn Exchange, Morpeth Town Hall beginning at 8.30am.

Entrepreneurs and ambitious companies looking to grow can learn about the six investment funds that make up the £125m super-fund and talk to fund managers about what they look for in a prospective investment.

Launched in January, Finance for Business North East has so far invested in more than £5m in over 20 companies across the region, leveraging in a further £7m in private investment.

Andrew Mitchell, chief executive of North East Finance, said: "The Finance for Business North East Fund is a fantastic resource for the region. The aim is to stimulate entrepreneurial activity, growth and job creation over the next five years.

"It's a unique opportunity for local firms in all sectors to receive investment and advice to support their growth plans and it's an opportunity they shouldn't miss. We need to ensure that businesses, entrepreneurs, banks, professional advisers and business angels across the region are all aware of this.

"The level of interest since the launch has been very high as we expected it would be. There have been some exciting deals completed and the pipeline is very strong."

For more information about the event please contact Stephen Warren at North East Finance on 0191 211 2300 or email: stephen.warren@northeastfinance.org

The event will begin with breakfast and include presentations and networking opportunities and finish at 10.30.

Additional information about the Finance for Business North East Fund can be found at www.northeastfinance.org   

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Blaydon-based Kent Connections, which transports fruit from the Garden of England to the North East and Scotland, has been boosted by a £200,000 investment from the Finance for Business North East Fund.

Kent Connections is now aiming to turn its present turnover of £4m to £6m and expects to add up to 12 people to its 48-strong workforce in the process. Current clients include Tesco, Del Monte and Dole, the world's largest producer, distributor and marketer of fresh fruit and vegetables, and it is now actively targeting new opportunities in its core market.

The investment has been made by NEL Fund Managers from the Growth Fund - one of six funds in the Finance for Business North East portfolio.

Jane Siddle, investment executive at NEL Fund Managers, adds: "Kent Connection is a long-term North East success story which clearly has the potential to achieve even more, and is also an excellent example of the type of ambitious, well-managed business for which the Growth Fund was created."

Kent Connection finance director, Michael Clarke, explains: "Both the recession and food prices have caused problems for many companies in our sector, and have indeed forced a few out of business, but we're now starting to see an upturn and are very well positioned to fill the gaps in the market that have been left behind.

"NEL were recommended to us and we're very pleased with the outcome of the investment process. Their corporate backing also gives us added credibility when speaking to other current and potential business partners."

ENDS

A £125m ‘super fund’ has made its first investment into the North East economy - with ambitious Gateshead-based games development company Eutechnyx receiving backing to develop groundbreaking titles and crack the free-to-play games market.

The £650,000 investment into Eutechnyx from the Finance for Business North East Fund is being managed by venture capital firm NorthStar Equity Investors (NSEI).

The funding allows Eutechnyx to finalise the development of a ground-breaking new title set to revolutionise the racing genre, as well as finance the development of its forthcoming free-to-play infrastructure ‘Auto Club Revolution’, as the company expands into the world of casual online games.

NSEI managed the investment from the North East Accelerator Fund - one of a suite of six funds that sits within the Finance for Business North East Fund (FBNEF). The £125m fund will support loans and equity investments into around 850 businesses, creating more than 5,000 new jobs over the next five years, which will help lead forward regional economic growth.

Eutechnyx is one of the largest independent videogame developers in the world, specialising in console-based driving games since 1987, with titles such as Ferrari Challenge, The Fast and the Furious and MTV’s Pimp My Ride.  Eutechnyx has also secured investment of £5.2m from Prime Technology Ventures, a Dutch based technology investor, to aid its development plans. 

Brian Jobling, CEO of Eutechnyx, commented:“We are thrilled to have secured this investment.  As an independent developer, this injection will help us to continue to forge our own destiny within a rapidly changing games industry.  Not only does the investment enable us to continue to innovate, we can continue to do so on our own terms.  The Finance for Business North East Fund support means a lot to companies like Eutechnyx and to start-ups all over the North East.”

Malcolm Page, One North East Deputy Chief Executive, said: “This investment into Eutechnyx marks an important milestone in the evolution of the Finance for Business North East Fund. It is the first of what will be hundreds of investments into exciting growing North East companies which will underpin the regional economy as we enter renewed economic growth.”

Jose Palma Andres, European Commission Director for ERDF operations in the UK, said: “We are absolutely delighted to have supported Finance for Business North East. We are confident that this investment will be the first of many - paving the way for the success of the various funds and a sustainable basis for future risk capital operations in North East England.”

Simon Brooks, European Investment Bank Vice President responsible for the UK, said: “The European Investment Bank congratulates Eutechnyx on being the first recipient of funding from the £125m Finance for Business North East Fund. We welcome their contribution to the knowledge economy and creating specialist jobs in the region, and look forward to seeing similar success stories in the near future.”

Andrew Mitchell, chief executive of North East Finance, which oversees investments from FBNEF, said: “We’re delighted to see the first investment successfully completed. The volume and quality of funding applications so far has been very high and we anticipate more deals following on from the other funds very soon.”

Alasdair Greig, Investment Manager of NSEI, added:“The North East Accelerator Fund was set up to help companies invest in their future growth at an early stage in their development. This investment in Eutechnyx, an exciting growth company and good demonstration of the digital media skills in the North East, is the perfect example of what the fund is all about, and as such, a fitting inaugural investment.”

NSEI, with its experience of identifying and supporting early stage companies, was chosen to manage the North East Accelerator Fund. The wider Finance for Business North East Fund will invest in companies and pre-start enterprises in any sector (other than those operating within the Excluded Sectors as defined in the Fund Management Agreement) at an early stage of their development, i.e. predominantly at the start-up and seed capital stages.

The event will give Yorkshire’s financial and professional advisory community an early opportunity to find out more about the new £125 million Finance for Business North East programme.

The groundbreaking super-fund  is an exciting portfolio of six investment funds set up to drive economic growth by providing vital access to finance for hundreds of SMEs over the next five years.

The road show will take place at the Malmaison Hotel in the city on Thursday May 27 beginning at 6pm and is organised by North East Finance which is managing the new programme.

Finance for Business aims to invest £125 million into a broad spectrum of businesses located in the North East through loans and equity investments designed to drive growth. It will invest in around 850 businesses by 2014, targeting start-ups, technology-based businesses and growing companies across all eligible sectors.

Andrew Mitchell, chief executive of North East Finance, said: “This is a perfect opportunity for people to explore the growth and investment opportunities in North East of England. The Finance for Business North East programme is the first of its kind in England and offers a unique resource to growing businesses at a time when we are emerging from recession,

“We have a strong track record in developing and managing successful investment funds in the North East. The new funds build on this and we’re keen to spread the message to ambitious SMEs and entrepreneurs.”    

The fund’s creation has been made possible by a unique collaboration with the European Investment Bank (EIB), based in Luxemburg, which is contributing £62.5 million to the programme. The European Regional Development Fund (ERDF) and regional development agency One North East (ONE) have jointly invested a further £62 million.

The £125m pot is divided into six separate funds, each targeted at specific sectors and business types. The funds are overseen by five FSA-regulated venture capital fund managers, which have been carefully chosen for their proven track records of managing and delivering high profile equity and loan investments. They include:

• The £15m Proof of Concept Fund and £20m Accelerator Fund which are managed by NorthStar Equity Investors
• The £25m North East Technology Fund run by IP Group
• The £7.5m Angel Fund managed by Rivers Capital Partnership
• The £20m Growth Plus Fund managed by FW Capital
• The £20m Growth Fund which is run by NEL Fund managers.

For more information about the road show and to book a place at the event, please contact Dawn Dunn at North East Finance on 0191 211 2300 or email: dawn.dunn@northeastfinance.org

County Durham injection moulding firm Formula Plastics is planning for a brighter future after battling through the economic downturn and restoring its business performance to pre-credit crunch levels.

The Newton Aycliffe-based firm, which manufactures a range of components for the automotive industry, was hit hard by the downturn, but over the last year has begun to recover, achieving growth of 20 per cent and getting back to its previous annual turnover of £1.5m.

Backed by an investment of £100,000 from the Finance for Business North East Growth fund - managed by NEL Fund Managers Ltd - it is looking to maintain growth by recruiting a new sales manager, investing in new equipment and diversifying into new markets. It will also take advantage of a growing number of opportunities in its core operational area.

Managing director John Suggate says: "The global downturn had a big impact and we had to work hard to keep things going but we've seen a gradual market improvement and have been able to turn this into a stronger business performance.

"Many of our competitors weren't able to emulate our survival and we can now see a lot of opportunities to pick up additional contracts, and we'll be appointing our first sales manager with a view to bringing new skills into the business and quickly expanding our customer base.

"The latest investment gives us the opportunity to make a long-term difference to the range of services we offer and the growth to which we believe they will lead."

Formula Plastics employs 33 people and supplies plastics components for Honda, Nissan, Toyota and Jaguar Land Rover.

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SMEs in Northumberland were out in force in Morpeth this week (September 22) to attend the latest Finance for Business North East road show.

North East Finance was hosting the event at Morpeth Town Hall as part of a series of roadshows being held around the North East over the last nine months to introduce the new £125m super fund to local businesses.

The super-fund, which comprises six individual investment funds managed by independent fund managers, was launched in January 2010.

Business attending the roadshow in Morpeth heard from Andrew Mitchell, chief executive of North East Finance, on the opportunities presented by the funds which aim to drive economic growth and create new jobs in the North East over the next five years.

As well as events in Morpeth, North East Finance has also visited Sunderland, Middlesbrough and Hexham reaching hundreds of SMEs, intermediaries and business support organisations in the region in the process.

Dawn Dunn, business development manager at North East Finance, said: "The roadshows have been very effective in engaging our key audiences and spreading the message about Finance for Business.

"The success of these events is reflected in the high number of applications we've received to date - both from within the region and beyond."

ENDS

Managed by NEL Fund Managers, the Growth Fund is designed to provide ambitious regional businesses which are at a development and growth stage with access to investment capital for expanding their operations and creating new, sustainable employment opportunities.

Whilst many applications have come from sectors traditionally associated with the region, such as manufacturing and engineering, a significant number have been received from newer industries.

Expanding sectors that have been well represented amongst potential Growth investees include technology, tourism and workplace training, as well as 'asset light' niche markets such as event management, media and the creative industries.

NEL has so far received formal investment applications with completed business plans to the value of £27m since the launch of the Growth Fund - one of six funds overseen by North East Finance.

Simon Johnson, senior investment executive at NEL, says: "We've been extremely pleased at both the quality and the number of applications and enquiries we've had about the Growth Fund and especially with the range of industries that have been represented with them.

"Industries that would have been unheard of in the North East just a few years ago now have a crucial role to play in its economic resurgence, and the ambition that businesses in these burgeoning sectors are showing through their Growth Fund investment applications demonstrates they are ready to accept this challenge."

NEL is looking to make around 130 investments over the five-year life span of the fund and is actively looking to speak to ambitious companies with robust business plans.

ENDS

The £125m Finance for Business North East Fund, managed by North East Finance (NEF), was launched in January with the first investment in Gateshead-based Eutechnyx in April.

Since then another 50 new and existing companies have received backing with investments from the fund totaling more than £10m which has been matched with a further £10m from the private sector

At a time when one avenue of cash support available to regional business has been terminated through the ending of the Grant for Business Investment scheme, and when businesses are struggling to get cash from the banks, it is being viewed as lifeline for the North East

Andrew Mitchell, chief executive of NEF, which oversees spending by the fund, said: "It is important for the region to have fast-growing companies and the fund gives confidence to the North East business community that there is the money available to support growth and investment up to 2015."

He went on to say that around 350 jobs have been safeguarded through the 50 investments to date and elaborated on further good news on the job front.

He added: "Twenty-five new jobs have been directly created as part of the deals so far, but those same 50 companies are forecasted to create 400 new jobs in total over the next three years."

The fund has been created with £62.5m from the European Investment Bank, £44.25m from the European Regional Development Fund and £18.25m from regional development agency One North East.

It is set to run for five years with the aim of helping 850 companies create 5,000 new jobs.

As well as the 51 companies to receive funding, through loans and equity investments, NEF has a further 800 applications.

Of these 500 are currently under active consideration with 93 of these from businesses based outside the region.

There had been some concern that there was not the critical mass of North East businesses to take full advantage of the fund's riches.

However, the opposite appears to be the case with more than £5m of the £10m private sector funding invested to date has come from outside the region.

ENDS

A North Tyneside industrial coatings firm is expanding its operational capacity thanks to funding from Finance for Business North East as it looks to capitalise on new commercial opportunities after managing to retain its entire workforce through the depths of the recession.

Monitor Coatings is bringing a range of services that it currently sends out to sub-contractors in-house, so that it can provide a more holistic service for customers.

Five new jobs will be created immediately as a result of the structural changes, with more expected to follow as and when a number of lucrative new contracts for which Monitor is currently bidding come into the business.

To help make these changes, Monitor has secured a new £400,000 investment from regional fund management firm NEL Fund Managers, via the Finance for Business North East Growth Fund. It is one of six funds in the Finance for Business North East portfolio managed by North East Finance.

The money will be used to buy the new equipment required to extend the range of services that the North Shields-based firm will soon be offering, as well as to provide the training required by the 34-strong workforce to use them.

Originally founded in 1927, Monitor provides high quality coatings for customers in a range of industries, such as aerospace, oil & gas exploration, steel and alternative energy generation.

Monitor numbers internationally known  brands such as Rolls-Royce, Tata (Corus), Halliburton and Bombardier amongst its customer base, and has a Singaporean subsidiary together with eight technology partners which are based throughout the world, giving it the ability deliver its products on a global basis.

Finance director Philip Winspear said: "Our industry was quite badly affected by the recession, but we worked hard to retain the whole of our highly-skilled workforce, something that we knew would be crucial to our success once economic conditions began to improve.

"Bringing these services in-house makes sense from both a commercial and a process efficiency point of view, and we're convinced that it will equip us to grow the business at the speed we're aiming for, especially with the pipeline of new opportunities that we can see lining up for us to address.

"We needed access to investment capital that we could access quickly when the right equipment purchasing opportunities came along, and the Growth Fund meets our criteria perfectly.

"The knowledgeable and pragmatic NEL team has work closely with us through what is a thorough but easy-to-manage investment application process, and we're now fully prepared to take the business forward."

Simon Johnson, senior investment executive at NEL Fund Managers, adds: "Companies don't build a client list as impressive as Monitor's without consistently providing high quality services, and their expertise in a very specialised sector gives them an excellent opportunity to achieve impressive commercial returns."

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A specialist North East law firm is looking to expand outside the region after beating the recession and recording a million pound turnover in just two years.
 
Cinnamon Property Lawyers is now aiming to quadruple this figure within three years by targeting specific areas of the country in which to provide conveyancing services through a series of local partnerships.

Cinnamon's expansion plans are being supported with a £90,000 investment from regional fund management firm NEL Fund Managers, via the Finance For Business North East Growth Fund.
 
The company was founded by managing director John Cook in Autumn 2008, and was initially staffed by a number of lawyers and other key staff who had been made redundant when Dickinson Dees' volume property business was sold.

Despite the slump in the property market, Cinnamon has succeeded over the last two years by combining traditional legal practice and service ethics with strategic use of new technologies.

Having secured a significant percentage of the North East property market, it is now looking to build the Cinnamon brand in areas such as South Yorkshire, Birmingham, Bristol and the home-counties, working with lawyers who provide the contact on the ground whilst managing the administration from its Team Valley headquarters. It expects to double its workforce of 20 in the next three years.

John Cook, managing director, said: "Even though the company was set up right in the heart of the credit crunch, we always knew that our service offering had the potential to succeed, and being able to come this far so fast is down to the determination and skill of the Cinnamon team.

"The NEL investment team understood what we were trying to do and quickly saw the business's investment potential - we built a good relationship with them through the application process and look forward to repaying their confidence in us."

Jane Siddle, investment executive at NEL Fund Managers, adds: "For a firm in this sector to simply stay in business over the last two years would have been a real achievement, so to build a million pound turnover from scratch shows the quality of the Cinnamon proposition, and they now have the resources they require to become even more successful."

ENDS

An historic north east manufacturing name is looking forward to a prosperous second century after winning a million pound contract with one of Germany's biggest companies.

Fairgrieve Moulding has beaten off competition from Australia and the US to secure a deal to manufacture equipment for global confectionery giant August Storck AG.

And the Washington-based firm's directors hope this initial contract will lead to additional work with Storck that could be worth up to a further £4m.

To help provide the working capital required to fulfil the contract and to purchase the additional equipment needed to manufacture the 94,200 sweet trays ordered by Storck for delivery before the end of the year, Fairgrieve has secured a £200,000 investment from regional fund management firm NEL Fund Managers, via the Finance For Business North East Growth Fund.

Founded in Sunderland in 1913, Fairgrieve manufactures high quality compression and injection mouldings using a wide range of modern materials.

Run by husband and wife management team Steve and Linda Biggins, the business currently employs nine people, a figure Steve hopes will increase in the coming months.

He says: "Even being asked to tender for a contract by an organisation like Storck is a testament to the products we produce, the production standards we uphold and the market reputation that we've built up over the years, so to win it in the face of international competition is a tremendous achievement for us.

"We've needed to move quickly to get everything in place to fulfil the Storck contract, as all the product has to be delivered before the end of the year, and the NEL team's support through the investment application process has been invaluable - we couldn't have done it without them."

Jane Siddle, investment executive at NEL Fund Managers, adds: "Fairgrieve's achievement in securing this major contract should not be underestimated, and it is yet another example of the manufacturing expertise that north east England still boasts.

"Their track record and production expertise made this a very attractive opportunity for us, and continues the investment momentum that the Growth Fund has gathered over recent months."

ENDS

A renewable chemical sector entrepreneur has unveiled ambitious plans to develop the UK's first manufacturing facility producing industrial chemicals from domestic and commercial waste - and is looking for a site on Teesside

Solvert Limited will use advanced biological fermentation processes to produce renewable n-butanol, acetone, hydrogen and electricity from wet biodegradable waste.

Led by a team of leaders from the UK waste and chemical business sectors, the company has so far secured a funding package worth £200,000 to develop the project.

This includes a £100,000 investment from the Finance for Business North East Proof of Concept Fund managed by Northstar Ventures.

The company's CEO Kris Wadrop, said: "Organic waste, such as spoilage from supermarkets or leftover food from our kitchens at home and in restaurants, holds immense potential for conversion into valuable chemicals to replace those produced from crude oil."

Proof of Concept funding from Northstar Ventures will enable Solvert to finance the initial development of the business, with encouraging results already coming from laboratory testing in conjunction with CPI's Sustainable Process Centre at Wilson.

Solvert is now looking at four possible sites for the £100m manufacturing plant including the Impetus Reclamation Site at North Tees, Tata Steel, Wilton and the former ICI site at Billingham.

Stephen Price, Proof of Concept manager at Northstar, said: "This is an exciting project which could have a very positive regional and environmental impact. Kris, an expert in the field of renewable chemicals, has pulled together a highly credible senior management team, and Solvert's new waste-management solution offers the prospect of significant job creation on Teesside."

ENDS

A North East plastic packaging manufacturer has secured a £1.2 million investment through the North East Finance for Business Fund that will cut costs for its customers, create up to 25 jobs and help the environment.

The money has enabled Re Pet Ltd to purchase an extrusion machine and ancillary equipment for the company's plastic production plant in Houghton-le-Spring.  It comes from the North East Accelerator Fund, managed by Northstar Ventures, and the Waste & Resources Action Programme's (WRAP) Accelerating Growth Fund (AGF) investing alongside management.

Re Pet produces plastic sheeting, containing between 50% to 100% recycled content, for products destined for the food packaging industry.  The raw materials used in PET (polyethylene teraphthalate) production are derived from crude oil, but by using recycled materials, Re Pet can offer a more environmentally-friendly manufacturing option.

As a UK-based supplier of recycled PET, the company hopes to capitalise on future growth in the market with the expected switch from PVC to PET plastic.  The process involves sandwiching recycled plastic between thin layers of virgin material, which is then pushed through a die under high pressure, creating a plastic sheet tailor-made to an exact width and gauge.

Alex Buchan, investment manager at Northstar Ventures, said: "We are delighted to be working with such a dynamic new company.  Re Pet will redress the undersupply of recycled material in the UK market, and we believe the business has great potential."

"As well as increasing consumer awareness with regards to recycled material, RePET will also create between 12 and 25 new jobs in the region."

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A specialist industrial coatings firm is demonstrating the business benefits of investment capital by moving into new markets, creating new jobs and bringing new contracts to the north east.

AMD Specialist Coatings received a £120,000 investment last year from regional fund management firm NEL Fund Managers, via the Finance for Business North East Growth Fund, to support its service expansion plans.

The company has since created three new jobs as a direct result of the funding, and is now looking at creating two new apprenticeships, as well as possibly bringing more new staff on board if a number of contracts that are currently in the pipeline come to fruition.

AMD used the Growth Fund investment to bring in a new stoving oven, spray booth and other equipment, as well as installing new IT systems and a new environmental lighting system across its Team Valley premises.

Additional training resources were also provided to help staff deliver the new services that the company now offers, which have already created a lot of new interest from current and potential customers, especially within the oil and gas sector.

The company has more than 50 years experience in wet paint and powder coating services. Its customer base includes major names such as WD Close & Sons, Pearson Engineering, Responsive Group, the Express Group, Soil Machine Dynamics and Tesco. 

Managing director Steve Davis says: "The investment we received from the Growth Fund has been central to the swift progress we've made over the last six months, and we're very pleased to be seeing the desired results coming through already.

"We now have everything in place to take AMD to a new level, and are very confident that we will be able to turn the company's potential into further commercial success over the next few years and beyond.

"NEL have always seen the bigger picture when it came to our development plans, and the team has really helped us to move things forward with their sound advice, commercial knowledge and enthusiasm for the work we're doing."

Jonathan Luke, senior portfolio executive at NEL Fund Managers, adds: "The Growth Fund is designed to help expanding businesses like AMD realise their business potential and create sustainable employment opportunities along the way, and it's great to see how quickly this investment has impacted on the great work the company is doing."

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North East Finance (NEF), which manages the region's £125m Finance for Business North East Fund, will host Finance Forum at the Riverside Stadium on May 12 between 8.30 and 12.30.

NEF has teamed up with Tees Valley's five local councils - Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton - to host the event with the aim of driving business growth in the area.

Finance Forum is targeted at local SMEs and aims to improve access to finance by introducing more firms to the £125m Finance for Business North East Funds.

Businesses attending the event will have an opportunity to chat to the fund managers running the six investment funds in the Finance for Business portfolio, learn more about the application process and the benefits to be gained from investment funds.

UK Steel Enterprise, the regeneration arm of Tata Steel, will also be at the event. It provides loan and equity funding up to £750,000 to new or expanding businesses (whether steel related or not) across the Tees Valley. Businesses will also be able to speak to each of the local councils involved in the event about a raft of other support services available to growing businesses.

Andrew Mitchell, chief executive of North East Finance, and Steven Catchpole of Tees Valley Unlimited are lined up as keynote speakers at the event.

Andrew Mitchell explains: "We've made a number of exciting investments into businesses in the Tees Valley region since we launched the funds last year.

"The idea now is to drive more deals by encouraging a greater number of businesses in the area to come forward for funding.

"To do this we need to ensure that people are aware of the opportunities and the funds relevant to them. We also need to ensure they understand the investment process and how to present their case to the fund managers."

Steven Catchpole, from Tees Valley Unlimited, added: "One of our key roles is to encourage the development of a diverse local economy in which ambitious SMEs sit alongside our successful traditional industries.

"The Finance for Business North East Fund is vitally important in this respect. Alongside the other business support services we have on offer, the fund will underpin future growth and encourage a new generation of entrepreneurs.

"This is a great opportunity for local companies to find out more and access the support and advice they need."

Anyone interested in attending Finance Forum is encouraged to register their interest as early as possible by contacting Dawn Dunn at North East Finance on 0191 211 2300 or by emailing dawn.dunn@northeastfinance.org.  

Further information is available at www.northeastfinance.org

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CANDDi, (Campaign and Digital Intelligence) based in Middlesbrough, will use the funding to expand the team developing its advanced web analytics and marketing automation platform.

The company's chief executive and co-founder, Tim Langley, explained: "Believe it or not websites are terrible at converting visitors into customers. It's very hard to know who has been to your website, and why they didn't buy something or make an enquiry. We help companies to better understand their prospects and respond appropriately with tailored offers and messages, or a more individual approach."

The web-based product is being developed for car dealers and manufacturers initially, but will expand into other sectors including ecommerce, as the company grows.

"The beauty of this exciting new software is the way it helps brands develop a better understanding of prospect behaviour," added Dr Richard Exley, Head of the Proof of Concept Fund at Northstar.

"CANDDi really impressed us with their new approach to web analytics and sales-lead generation - and the fact that they can convert window shoppers into customers."

Originally set up by Manchester-based Langley and co-founder Tom Cheesewright, CANDDi moved to Middlesbrough to join the Difference Engine accelerator programme which helps young companies to find backers.

Newcastle is to be home to Europe's first £1m digital start-up accelerator programme, in a move that could attract the sector's most promising emerging businesses to the North East.

The ignite100 programme is backed by funds from IP Group and Northstar Ventures, and will put 10 high-potential business teams through an intensive 13-week programme of mentoring to help them re-shape and develop their idea.

Each team will receive up to £15,000 at the start of the programme, which will be topped up to £100,000 once it has achieved its pre-set goals and proved its potential.

The programme is accepting applications now, with a view to launching in September. The project builds on the success of the North East-based Difference Engine seed funding programme, which helped spur on the development of businesses such as Screenreach, Curated.by, Pinevio and Love Your Larder.

The Difference Engine was run by former investment manager Jon Bradford and backed by One North East as well as Sunderland and Middlesbrough Councils, but its successor has a much more private sector focus following the disintegration of the regional development agency.

ignite100 co-founder Bradford said: "This is a vital development for early- stage digital businesses for whom funding options are now increasingly limited.

"With a mix of investment capital, intensive business development support and external advice from key partners such as Google, PayPal and Amazon, we believe we can build a portfolio of sustainable businesses that will in time play their part in supporting the local economy.

"The offer of £100,000 from two leading technology-focused venture capital businesses, together with strong angel investor backing and support makes the ignite100 programme a very compelling opportunity for digital companies."

The idea of the business development boot camp is well-regarded in America, with notable programmes such as Y Combinator and TechStars giving teams access to guidance from a regular stream of experienced business mentors.

The Difference Engine was one of a group of projects that have explored this approach in Europe, such as London's SeedCamp, Cambridge's Springboard and - more recently - Birmingham's Oxygen Accelerator. However, the funds available from the ignite100 programme will make it the most high-profile accelerator of its kind in Europe.

Funding will come from the Finance for Business North East Technology Fund managed by IP Group and the Northstar-managed Finance for Business North East Proof of Concept Fund.

As well as the two main project backers, ignite100 is also supported by angel investors including Hotspur Capital Partners and Green Lane Capital. The day-to-day project management will be handled by Paul Smith, Twitchhiker creator and partner in Never Odd or Even.

The backers gathered to support the project after seeing the success of two batches of Difference Engine alumni. Over half of the businesses from the original programme in Middlesbrough have since received funding. Notable successes include interactive digital media company Screenreach, which has just opened an office in New York and has raised around £750,000 in finance in the last year.

IP Group's investment manager Nick Edgar said: "The combination of funding, specialist advice and networking opportunities provides a solid launch pad for those serious about taking their digital business idea forward and there will be second-round funding opportunities for those demonstrating a successful and profitable business model."

Dr Richard Exley, head of Proof of Concept Funds at Northstar Ventures, added: "Start-ups often lack an experienced management team and our job is to plug that gap by making sure those behind each business have thought long and hard about their products and markets, and then to help them gain traction.

"There's no doubt there will be a great deal of interest in the programme from start-ups and established business players alike."

For details see www.ignite100.com

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A North East venture capital team has won a major national award from a leading industry body.

Newcastle-based Northstar Ventures picked up the Early Stage Team of the Year award at the annual British Business Angels Association dinner in London, where nearly 200 people gathered together in the unique setting of the Museum of London, to celebrate achievement for early stage investors and entrepreneurs.

The BBAA annual awards ceremony is one of the most important events in the venture capital community's calendar. To date, Northstar team has invested over £6.5 million into 21 early stage companies on behalf of the £20 million Finance for Business North East Accelerator Fund. 

Many of these investments attracted additional support from business angels and, in total, £20 million has been raised for its portfolio of early stage companies across a range of sectors including digital media, energy and environment, healthcare, biotech, and mobile communications.

Northstar's £650,000 investment into leading racing game developer Eutechnyx helped to secure further funding from Prime Technology Ventures.  Last month the company released the first glimpse of its highly anticipated online racing game, Auto Club Revolution, that delivers console-quality online racing to the free-to-play games market.

Meanwhile, cell culture technology company Reinnervate has gone on to raise funding of £3 million since receiving its first investment from Northstar in 2006.  It has also expanded its commercial and product development teams, following the initial launch of its cell culture device Alvetex late last year - with further product launches scheduled throughout 2011.

Northstar chief executive Marion Bernard said, "We're delighted to have been named best in Britain.  As the judges' comments stated, Northstar has been instrumental in making investments - and raising funds - across a number of stages and sectors in an extremely challenging environment.

"Since its inception in 2004, Northstar has consistently backed ambitious management teams across the North East to help their businesses grow and succeed.  Our investment team is dedicated to providing close support for its investee companies covering their strategic, operational, and financial needs."

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A successful north east asbestos management firm is eyeing bigger and better contracts across the UK after investing in new equipment and expanding the range of services it provides.

Nichol Associates is now able to provide a ‘one stop shop' for all asbestos-related requirements after setting up an analytical testing service alongside its existing asbestos surveying, removal, consultancy and training operations.

The company is now fully equipped to bid for larger and longer contracts with bigger organisations, and is aiming to build on the success it has already enjoyed both within and outside the north east.

As a result, it is expecting to break through the million pound turnover barrier next year, and is also aiming to add at least eight more people to its existing 22-strong workforce over the next two years.

To help fund the company's development plans, Nichol Associates has secured a £70,000 investment from the Finance For Business North East Growth Fund, which is administered by regional fund management firm NEL Fund Managers.

The Hebburn-based business grew quickly after being set up in 2006 by experienced asbestos manager Dave Nichol, on the back of enhanced measures being introduced around the responsible management of asbestos within non-domestic premises.

The company's existing client base ranges from multi-national organisations and city councils with wide-ranging asbestos management issues, through to individuals from the health and safety, facilities management and asbestos contracting industries with a particular training need.

Dave Nichol says: "When we set up the company, we knew that the increased responsibilities that building owners faced around managing asbestos-related issues presented a clear commercial opportunity, and capitalising on this has helped us build a company that is already recognised as a leading name in its sector.

"We knew that there were bigger contracts out there that we could bid for if we enhanced the resources available to us, so looked at the different options for bringing in the investment that we needed to make this happen.

"The NEL team didn't treat us like just another set of figures - they developed a really strong grasp of our business and how it would benefit from a capital injection, and worked closely with us through the thorough investment application process.

"Our aim now is to maximise the benefits that offering every type of asbestos-related service can bring to both existing and new customers, as well as to ourselves, and to bring more contracts and jobs into the north east in the process."

Simon Johnson, senior investment executive at NEL Fund Managers, adds: "Offering proven expertise within an expanding niche market presents a powerful commercial opportunity, and this latest Growth Fund investment will enhance Nichol Associates' capacity to build on very solid foundations and achieve even better results.

"Interest in the Growth Fund continues to be very strong from firms right across the north east, proving that the difficult economic climate is doing little to diminish the commercial ambitions of businesses in our region."

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The company behind a unique scheduling system for electric vehicles has secured an investment of £500,000 from the Finance for Business North East Technology Fund to help achieve its expansion plans.

Route Monkey has, over the past six years, developed the first scheduling system of its type for electric vehicles, which is initially being targeted at commercial vehicles and fleets. The unique system helps fleet managers identify the best vehicle for every delivery or collection, helping to remove range anxiety and improve their return on investment.

And as well as securing the investment from the Fund, Route Monkey has struck a strategic partnership with Smith Electric Vehicles, to supply its market-leading technology to one of the world's biggest commercial electric vehicle manufacturers.

The global agreement will see RouteMonkey's scheduling software interface with Smith Electric's proprietary telematics system, Smith Link^TM. RouteMonkey's real-time scheduling capabilities allow electric vehicle fleets to make opportune, additional collections and deliveries, without range anxiety or real-world interruptions affecting performance.

Route Monkey - which provides software solutions for vehicle operators, such as routing and back office solutions - is using the investment from the Fund to concentrate its focus on the electric vehicle market, and to open a new office in Newcastle in addition to its base in Scotland. It is also looking at expanding its software product portfolio, again with particular focus on the electric vehicle market.

As the business grows, it plans to recruit more software developers and add further sales resource to its team, creating new jobs in the region.

Longer-term, the business is looking to break into the United States and to establish a re-seller network in territories including South Africa and Ireland.

Colin Ferguson, chief executive of Route Monkey, said his aspiration is for the business to be the "de facto scheduling provider in commercial electric vehicles," and that the partnership with Smith Electric Vehicles, based in Washington, Tyne and Wear, is a second major boost for the business, following the investment.

"We came up with the concept in 2006/7, and took it to market in 2009. Since that time, we have been relatively successful, becoming a niche software provider which turns over a seven-figure sum, all of which has been done under our own steam, with no investment," he said.

"I am confident that with this support from IP Group, which we are extremely grateful for, we can take Route Monkey to another level. We are looking to export and expand into new areas internationally, and are able to look at doing that with a much more aggressive strategy than before.

"We are proud to be putting down roots here in the North East, and as our product portfolio and company grows, the new jobs we create will be here in this region."

Ian Wilson, investment manager at IP Group in Newcastle, said: "Route Monkey is an outstanding business, which has positioned itself well to take advantage of the many opportunities in the electric vehicles sector, which will undoubtedly be a real growth area in months and years to come. Its partnership with Smith Electric Vehicles is testament to the strength of its product.

"The North East already has a global reputation for its work in electric vehicles, and I am confident that Route Monkey will become an established name in the industry before too long."

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Big hitters in the investment world visited the Tees Valley to take part in an event designed to drive growth by giving SMEs an opportunity to meet investors.

North East Finance (NEF), which manages the region's £125 million Finance for Business North East Fund, hosted a ‘Meet the Investor' event at Teesside University's Queen's Campus.

The event, which attracted around 100 guests, was hosted by NEF in partnership with North East Access to Finance and the Endeavour Partnership.

NEF is looking to increase the number of investments being made into business ventures across the Tees Valley and held the event to give SMEs and business intermediaries an opportunity to impress investors with their ideas and find out what they look for in an investment.

Guests were able to speak with representatives from the fund managers looking after the seven funds in the Finance for Business North East portfolio as well as members of the NEF board - who hold key positions within the British Venture Capital Association.

Andrew Mitchell, chief executive of NEF, said: "The Finance for Business fund has been actively investing for well over a year now and, while we've made many excellent investments in Tees Valley businesses such as Femeda, CCE and Solvert and we're keen to make more."

Femeda, CCE and Audacious are recent beneficiaries of investment from the Finance for Business Fund. Femeda is developing groundbreaking health products, CCE is creating technology that will improve fuel efficiency and cut emissions in power plants, and Audacious is an exciting digital business with strong prospects. These businesses will be attending the event to offer an insight from the investee perspective.

Andrew added: "We want to build the pipeline of deals we have here in the Tees Valley to really drive economic growth and encourage businesses, whether starting out or already well established, to reach their potential.

"This can hopefully help to encourage the development of a diverse local economy in Tees Valley, alongside more traditional industries. There are some fantastic emerging sectors around biomass, Digital City and Boho and we need to reach out to people in these sectors.

"The event was designed to give people unparalleled access to some of the leading investors in the country. It was an opportunity for them to learn what makes them tick, what they look for in a deal and how to attract investment. In the long-term, this can only help to drive deal making here."

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