Success story

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£125m venture capital fund, North East England

Regional Development Agency One North East, led and co-ordinated nearly two years’ intensive work with the European Investment Bank (EIB), European Union and UK Government to establish the first publicly backed fund of its type in England.

The new JEREMIE venture capital fund – Joint European Resources for Micro to Medium Enterprises Initiative – will invest loans and equity investments into 850 SMEs over the next five years and create more than 5,000 jobs, targeting business start-ups, technology-based companies and growing smaller businesses.

The EIB, European Regional Development Fund and Government have all approved their investments into the fund which will go live in January 2010.

The fund is seen as providing vital access to finance for firms during the recession, helping them consolidate and plan ahead with greater confidence to seize the opportunities the economic recovery will present.

Leading venture capitalist Robert Drummond is heading the JEREMIE Investment Advisory Board with support from deputy chairman Sir David Chapman and board members Dr Anthony Henfrey, Richard Green, Peter Yendell and Robert Davies, to monitor the performance of investments.

Key facts

• £125m in funding will be made available to SMEs.

• 850 SMEs will receive loans and equity investments over the next five years.

• More than 5,000 jobs will be created.

Robert Drummond, former chairman of the British Venture Capital Association, said:

“The new JEREMIE project heralds a challenging and exciting new era for venture capital in the North East. I am excited that the JEREMIE funds will be used to help many young and small companies prosper and deliver good returns to investors too.”