Early-stage tech firms reap £52.5m in investment

The recession hasn’t kept the SETsquared Partnership from seeing a healthy year for investment in early-stage technology businesses: in the year from 1 September 2008, it’s seen the companies it incubates reap £52.5 million from private investors and VC funds.

Those funds not only pave the way for continued growth and development, but have also helped to create 142 new jobs, according to the partnership, which combines the resources of the Universities of Bath, Bristol, Southampton and Surrey.

Energy was the largest industry sector to receive funding, followed by healthcare and information technology. Semiconductors, renewable energy and computer animation businesses also benefited from new investment.

“People remain willing to invest in good ideas and good businesses particularly when they have shown traction in their market,” said Jonathan Bloor, co-founder and director of DocCom, a healthcare communications business that’s received £250,000 in investment over the past six months.

“The UK needs to innovate its way to recovery and future prosperity,” said Karen Brooks, projects director for SETsquared. “The investment trends that we’re experiencing are promising signs that we are going to be very successful in doing that.”

The SETsquared Business Acceleration Centres support early-stage, technology, high-growth-potential ventures both from within and outside the universities of Bath, Bristol, Southampton and Surrey to accelerate their businesses. Each centre provides business mentoring to entrepreneurs and business professionals, and office space. Over the last four years, companies supported by the centres have raised over £170 million and created over 1100 jobs.

Over 100 businesses have ‘graduated’ from the centres, typically after 18 months to three years.