Funding for Business
Early Stage Funding
Finding appropriate funding for new technology ventures can be difficult as they are perceived by investors to be very high risk. Later on when the technology application is proven, the route to market has become established and there is a positive cash flow, it will become easier to attract funding.
Science City York Micro-Grants
Up to a maximum of £500 is available to start-up businesses located in York and North Yorkshire working in association with Science City York.
Applicants are eligible to apply if the business:
- Is in the early stages of development and has been trading for less than 18 months old.
- Is a creative, science or technology-based venture.
- Is operating as a sole trader, a partnership or a private limited company.
- Has not already received significant investment from either the public or private sector.
This is a 'matched funding' scheme where the applicant is required to contribute at least 50% of the costs.
The project to be part-funded by the grant should be designed to move your business forward and ideally support growth or expansion plans.
Application Procedure
Application forms are available electronically from the Science City York Delivery Team, who will discuss and review your application with you.
The completed form should be returned by e-mail and in hard copy with an original signature.
The application will be assessed by the funding panel within two weeks of receipt.
A response will be given within two days of the panel decision.
If successful, the grant will be released on receipt of invoices for the project expenditure.
Further Assistance
Science City York offers advice and assistance with identfying available, and the most appropriate, sources of finance to help launch and develop your business proposition.
Businesses can seek access to private investors through the Yorkshire Association of Business Angels or the Viking Fund, a venture capital fund for equity rounds up to £250,000.
For University of York spin-outs there will also be access to other valuable sources of early-stage funds such as the White Rose Seed Corn Fund.
Investment Readiness
Science City York will assist new ventures to identify the appropriate stepping stones to use and will help set priorities and an action plan for the business. Many new entrepreneurs will also find it helpful to join the investment readiness programme of Connect Yorkshire so that they can develop a suitable presentation and prepare themselves ready to attract investors. Connect Yorkshire also organise two major investment conferences a year for new ventures to pitch to venture capitalists, and it runs a Business Competition at Venturefest Yorkshire.
Subsequent Funding Rounds
There are many sources of venture capital funds in the region and elsewhere in the UK. Many of the larger legal firms have corporate lawyers who specialise in this area (http://www.thelawyer.com/lawyerdirectories.html), and the larger Accountancy firms usually have specialist corporate finance departments (http://www.icaewfirms.co.uk/). In York, most professionals are members of the York Professionals (http://www.theypi.co.uk).
Each of the nine regions of the UK has its own Regional Venture Capital Fund (RVCF) to invest in SMEs (Small/Medium Enterprises) in their region. In Yorkshire the RVCF is managed by YFM Venture Finance. Initial investments are limited to £250,000, but they can follow on after 6 months or more with a further £250,000.
For other sources of venture capital the British Venture Capital Association (BVCA) has a useful search facility to find investors for amounts from £10,000 to over £100m.
For further information, please contact Science City York's Delivery Services Manager or T 01904 870050
