Establishing a new UK finance escalator for innovative SMEs: the roles of the Enterprise Capital Funds and Angel Co-investment Fund

Owen, Robyn and Mason, Colin (2015) Establishing a new UK finance escalator for innovative SMEs: the roles of the Enterprise Capital Funds and Angel Co-investment Fund. Venture Capital: an International Journal of Entrepreneurial Finance, 17 (1-2). pp. 59-86. ISSN 1369-1066

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Abstract

This paper examines UK public policy addressing the seed and early stage equity finance gap since the Global Financial Crisis (GFC). Drawing on lessons learned from recent studies of UK and international government equity schemes, two contemporary models of government backed equity finance are examined. The focus is on the Enterprise Capital Funds (ECFs) and the Angel Co-investment Fund (ACF), the UK government’s main schemes operating in the sub-£2m equity finance gap to address the capital requirements for developing the UK’s young, potential high growth businesses.
The paper highlights the shortcomings of traditional interim fund performance analysis and presents current demand and supply side evidence that establishes that these schemes are making attributable impacts on their portfolio businesses and the wider UK economy. It also demonstrates that they are playing important roles in the establishment of a new post GFC UK finance escalator. However, whilst these schemes were found to be currently complementary and effective, their future roles within the UK’s evolving post GFC seed and early stage equity markets are also considered.
Key Words: Government Equity Schemes, Venture Capital, Potential High Growth SMEs

Item Type: Article
Additional Information: Published online: 07 Apr 2015. Online ISSN: 1464-5343, Special Issue: Financing Small and Medium Sized Enterprises: Meeting the challenges after the Global Financial Crisis. Guest Editors: Rob Baldock and Richard Harrison
Research Areas: A. > Business School > Centre for Enterprise and Economic Development Research (CEEDR)
Item ID: 18115
Notes on copyright: 18 month embargo. This is an Accepted Manuscript of an article published by Taylor & Francis in Venture Capital on 07/04/2015, available online: http://www.tandfonline.com/10.1080/13691066.2015.1021025
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Depositing User: Stanislava Angelova
Date Deposited: 14 Oct 2015 11:32
Last Modified: 06 Apr 2019 14:02
URI: https://eprints.mdx.ac.uk/id/eprint/18115

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