A Scottish technology fund brokerage has launched its first venture fund targeting Britain’s ‘green economy’ – albeit with a preference for Scottish based companies.
Glasgow-based Greenbackers Investment Capital will manage the Greenbackers Cleantech Fund in collaboration with Innvotec Ltd, a state-regulated alternative investment fund manager with a 30-year history in technology and private company investing.
The Greenbackers Cleantech Fund – which will focus solely on cleantech and green economy start-ups and emerging private companies – will provide competition to both established private-sector investment boutiques (such as Scottish Equity Partners) and also to a plethora of over-lapping rival public-sector development agencies.
Investment into the fund is based on the Enterprise Investment Scheme and Small Enterprise Investment Scheme rules. The fund intends to make new investments each quarter: details of these will be announced shortly.
Greenbackers focus will be on growth stage cleantech innovation, climate change mitigating technology and green economy businesses.
The fund plans to invest in mature-seed stage/maturing-A stage companies, initially in amounts from £25,000 to £100,000, with an expectation of increasing these levels as the Fund becomes established.
The fund will engage with entrepreneurs seeking funding, business incubators supporting promising green technology start-ups and other fund managers interested in co-investment opportunities in the clean-tech space.
Robert Hokin, Greenbackers’ chief executive and managing partner, commented: “There is excellent and quite often overlooked growth potential in the UK’s emerging cleantech sector – more so in Scotland. This fund is the start of meaningful and long overdue support that we want to provide.”
Innvotec chairman John Marsden stated: “We believe that Greenbackers’ deep knowledge of the cleantech sector will provide substantial value and insight to our investors and valuable financial support to entrepreneurs in this growing asset class.”
Meanwhile, a report by the Positive Money lobby group has urged the Bank of England to put climate change “front and centre” of its mandate to boost green investment.
The report said the bank’s concern for financial stability will look “incoherent” unless the BoE does more to boost investment in the transition to a low-carbon economy.
16 May 2018