Businesses encouraged to explore equity funding opportunities with MEIF II

Warwickshire businesses are being urged to tap into the growth potential offered by equity funding through the Midlands Engine Investment Fund II (MEIF II), backed by the British Business Bank.

MEIF II provides a powerful avenue for businesses of all sizes to access substantial financial support that can not only fuel expansion but also bring in valuable expertise.

Hardeep Sandhu, Service Manager (Business Growth) at Warwickshire County Council, strongly encourages businesses to consider this option. "Equity funding isn't just about securing funding - it's about bringing on board experienced partners who can drive your business forward," she said. "Starting the conversation early, even if it's just a consideration for the future, could be a game-changer."

In Warwickshire and across the Midlands, MEIF II’s equity funding is managed by Mercia Ventures, an investment business with a track record of growing and scaling businesses. Earlier this year, Mercia was appointed as manager of the two new MEIF II equity funds specifically focused on businesses that are either rooted in the region or planning significant expansion here. MEIF II will augment Mercia’s existing funds under management which it can invest across the region.

With over £160 million available to invest over the next five years, MEIF II can provide up to £5 million in equity funding to help businesses achieve their strategic objectives. Whether you're an innovative start-up or a well-established company, this fund is designed to support a broad range of businesses. For Warwickshire companies, this is a unique opportunity to scale rapidly with the backing of seasoned investors. More information is available through Mercia Ventures.

Key highlights of the investment opportunities include: 

• Investments ranging from £500,000 to £5 million, tailored to fit your business needs.
• Open to businesses across all industries, with a focus on later-stage investments for traditional sectors and early-stage support for technology and life sciences.
• No requirement to meet Enterprise Investment Scheme (EIS) or Venture Capital Trust (VCT) criteria, making this accessible to companies at any stage of growth.
• Flexible deal structures, including the potential for profitable businesses to receive significant cash-out options (up to 50% of the investment).

Rafael Joseph, Investment Manager at Mercia Ventures, emphasised the strategic advantage of partnering with them.

“Mercia has a solid history of investing £1-10 million into businesses across the UK. With the funds which Mercia manages, we are in a strong position to help ambitious companies in the Midlands realise their growth potential. This fund enables us to provide not just capital, but also the strategic guidance crucial for scaling successfully. We’re eager to connect with businesses looking to explore how equity funding can accelerate their growth.”

Hardeep added: “This is another option for businesses to raise finance. Mercia Ventures has a credible team who can support businesses, sit on their boards and advise as well as invest to ensure businesses future growth strategies materialise. A conversation now could be fruitful for a business who is thinking about equity further down the line and enables businesses to be aware of all financial options in order to be prepared and the business to contingency plan.

“I am really keen to ensure that businesses are equipped with a clear understanding about Equity Finance as businesses may have shied away from in the past but, and equity financing can foster growth with the right investment experts alongside capital."

For more information, please visit https://www.mercia.co.uk/meif-iimercia-equity-finance-west-midlands/

* The MEIF II offers a range of commercial finance options with debt finance from £25,000 to £2 million and equity investment up to £5 million. For more information, visit: https://www.british-business-bank.co.uk/finance-options/nations-and-regions-investment-funds/midlands-engine-investment-fund-ii

 The MEIF II is part a wider package of finance and funding available for businesses in Warwickshire including the County Council’s own loan and grant programmes.”