Mercia Fund Management

Project information

Index: 0787R2
Acronym:DISTRICT+
Priority:1: Innovation and the knowledge economy
Sub Theme:Innovation, research and technology development
Location UNITED KINGDOM WEST MIDLANDS Birmingham West Midlands Start/End date of the practice
Start: 01/07/2011

Topic of the practice

Innovative financial products

Good Practice Information

MFM has been established to provide venture capital finance and make investments on purely commercial terms in return for an equity stake in the business. MFM invests in technology and innovation companies based in the West Midlands and operating within one of the following technology sectors: Medical and Healthcare, Advanced Materials, Clean Technologies and ICT & Digital Media. MFM invests at the seed stage and, working with the investee's Founders, looks to build out the management team and attract in further third party venture capital investors, often through syndication. MFM is an active, hands-on investor and therefore usually takes a position on the board of an investee company. MFM has been established to provide venture capital finance and make investments on purely commercial terms in return for an equity stake in the business.
MFM is based at Birmingham Science Park Aston and has a strong relationship with a number of significant partners (Including the Universities of Birmingham, Warwick, Aston, Coventry, Staffordshire, Wolverhampton, Birmingham City and Keele, University of Warwick Science Park, MidTech NHS Innovation hub, Pera Innovation Ltd, Complete Resourcing Ltd and Forward Group plc). The Universities of Birmingham and Warwick invested in Mercia Fund 1 and they, together with a further six universities, invested in Mercia Fund 2. This relationship not only gives MFM early access to investment opportunities but is a source of technological expertise for due diligence, technology evaluation and development, and grant funding.

Evidence of success

In common with other venture capital providers, MFM0 makes equity investments on the basis of anticipated strong capital growth and high levels of return. Typically, Mercia Fund Management would expect to receive a 5 to 10 fold increase on its overall investment at exit. In most instances, Mercia Fund Management will secure its returns through a strategic trade sale of the investee to a larger industrial concern, although an exit via flotation of the business on a recognized stock exchange such as the Alternative Investment Market (AIM) is not ruled out.

Contact details to obtain further information on the practice

Mark Payton

Mercia Fund Management Ltd

markp@merciafund.co.uk

www.merciafund.co.uk

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