Invest NI is to continue its funding relationship wit Crescent Capital and Techstart Ventures, the latter of which has previously operated two $2m funds aimed at spinouts.
Invest NI, the economic development agency for Northern Ireland, is to fund two new VC vehicles worth a combined £95m ($122m) to nurture local early-stage businesses, the Irish News reported yesterday.
The agency’s investment will create a second seed fund managed by Scotland and Northern Ireland-focused seed investor Techstart Ventures sized at $38.6m.
Techstart’s existing purview includes a proof-of-concept grant award program and two spinout-focused equity funds each sized at about $2m, according to an Invest NI evaluation report.
Invest NI will also equip Crescent Capital’s fourth equity fund with $83.7m to foster fledgeling companies in the technology, life sciences and manufacturing spaces.
Techstart will typically invest $2.6m in each company over multiple rounds, including an inaugural commitment of about $386,000, while Crescent Capital’s vehicle will back initial funding rounds with up to $3.2m, rising to a potential $6.4m per investee.
Both vehicles are to be funded through Invest NI’s Access to Finance scheme, a program part funded by the EU-owned European Regional Development Fund that offers loan and equity funding to promising small and medium-sized enterprises.
With the help of Invest NI’s funding, Crescent and Techstar’s earlier funds have reportedly backed more than 60 local businesses.
