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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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Nichol Associates aiming fro higher with growth funding
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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Business on route to success
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 LinkTM. 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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