First small firm gets funding from the government’s Capital Enterprise Fund
BUSINESS secretary Lord Mandelson yesterday announced that a Bedford-based firm has become the first to receive money from a £75m government fund launched help small to medium businesses.
Octopus Investments, which manages £30m of the Capital for Enterprise (CFE) fund, said that it will invest £2m into software firm KeTech.
“Ambitious and innovative businesses like this are the lifeblood of the economy but tough credit conditions can make it difficult for them to invest in their future,” said Mandelson.
The CFE fund, which was announced in January, comprises £50m in state money and £25m provided by retail banks. Its aim is to provide long-term capital to viable businesses which are struggling in the face of limited credit.
A Glasgow-based company is expected to be the second firm to receive investment, this time from Mavern Capital Partners.