UK technology firms Ketech and Vamosa are the first to benefit from a government-backed £75m Capital for Enterprise Fund (CFEF), providing investment to innovative small businesses.
The CFEF is a fund comprised of £50m from government and £25m from high street banks (Barclays, HSBC, Lloyds TSB and RBS). The £75m CFEF was created to help viable small and medium-sized businesses with genuine growth potential that would otherwise be unable to secure investment.
Business Secretary Lord Mandelson has announced an investment of £2m from the Capital for Enterprise Fund to UK software company KeTech. It will receive the equity funding from Octopus Investments, which manages £30m of the total £75m.
KeTech provides communication software and services to the rail industry. It also produces specialist detection systems for use in defence and emergency services markets, together with building management systems. It has more than doubled its turnover to £16m since 2006.
John Kearney, chief executive of KeTech Group, said: “Since the current economic crisis began, the lack of available credit, even to viable businesses such as KeTech, has significantly impaired our ability to keep growing. As a result, we turned to the Government for help.”
A further £1m investment by the fund is being made in Glasgow-based Vamosa. It offers a range of products to businesses and governments to help them to analyse, monitor and maintain business content. Maven Capital Partners, which manages £30m of the £75m fund, is investing £1m of equity funding in Vamosa.
George Knox, managing director of Vamosa, said: “With this investment, we will help to define the global Enterprise Content Governance sector. It is our vision for a Scottish business to ensure multi-national organisations and governments receive the highest return on investment from their content assets. Receiving this capital injection from Maven is a proof-point to the opportunities available to Vamosa.”
Lord Mandelson said: “Ambitious and innovative businesses like these are the lifeblood of the economy but tough credit conditions can make it difficult for them to invest in their future. The government is committed to ensuring that viable companies have the finance they need to grow.
