Regional SME low carbon fund looks beyond East of England

The University of East Anglia’s Low Carbon Innovation Fund (LCIF) for small to medium-sized enterprises (SMEs) launched last year. The £20 million fund will provide capital for businesses until December 2015. It recently made its first investment in Norwich-based water mains monitoring technology company, Syrinix, and expects to announce one to two further investments shortly. However, the fund is also acting as an inward investment vehicle and is actively seeking to invest in small firms outside the region that can relocate.

"We will invest in businesses outside of the East of England looking to relocate," said Laura Chellis, LCIF project coordinator. "The level of interest in the fund is continually increasing and we look forward to expanding our portfolio of investments in small to medium-sized business over the coming months and years."

Broad eligibility
The fund has broad eligibility criteria. Qualifying companies can either create products that use less energy than those currently on the market or require less carbon to make or they can be involved with low carbon services so that other businesses and organisations produce less CO2. Businesses can also qualify if they are changing their operational methods to be low carbon or developing alternative energy sources.

Funding structure
The European Regional Development Fund has allocated £8 million toward the £20 million LCIF. Turquoise International is responsible for raising the other £12 million from private co-investors.

"It is not a grant scheme but an equity investment fund, which means it follows the Dragon’s Den-style model in that the company sells us part of the business," said Chris Harrison, Low Carbon Innovation Centre chief executive.

The investments will range between £50,000 to £500,000 in public funds, and private finance must meet or exceed that amount, typically in the ratio of 40 per cent to 60 per cent, respectively.

First investment
Water main monitoring specialist Syrinix was the first company to receive funding from the programme. Syrinix received £65,000 for its vibration sensor technology that helps monitor trunk water mains while helping reduce its carbon footprint.

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Related links:
www.lowcarbonfund.co.uk/LCIF/