In light of declining arts funding, venture capital firm Edge Investments has opened up £40 million to the creative industries, intended to encourage flair and entrepreneurial spirit within smaller creative companies which might be suffering at the hands of declining arts funding.
Theatre companies wishing to apply for the fund will be able to do so on commercial terms, with Edge Investments seeking a minimum of a three times return over its seven to ten-year life for investors, who include high net worth people and businesses. This includes government-owned British Business Bank, who are committing £24 million towards the scheme.
While full details have yet to be confirmed, Edge Investments have divulged that they will look to invest in ‘fast-growing and revenue-generating small- and medium-sized creative companies, which have access to core intellectual property assets which Edge believes are poised to benefit greatly from the growing digital economy.’ ‘The creative industry is of increasing importance to the wider UK economy,’ says Ken Cooper, managing director of Venture Capital Solutions at British Business Bank, ‘and we are particularly pleased that this fund will ensure these high-growth businesses have access to the finance they need to scale.’
Chief executive of Edge Investments David Glick adds, ‘There are nearly 160,000 creative industries businesses in Britain. Yet despite being in this high-growth sector, many of them find it difficult to attract adequate capital to maximise their potential. Our new Edge Creative Enterprise Fund aims to fill that funding gap.’
While there is no specified deadline for securing financial support as yet, prospective companies can visit the Edge Creative Enterprise Fund website for more information at http://www.edge.uk.com/edge-creative-enterprise-fund