Barclay's allocates £66m to DTI-backed regional venture capital fu nds

Barclay’s Bank has become the first high street bank to announce its support for regional venture capital funds (RVCFs), each endorsed and financially backed by the DTI. The objective of the funds is to provide venture capital to start-ups and young companies wishing to expand but having difficulties obtaining equity investment, as they need amounts well below the usual venture capital threshold of £1m. The initiative is designed to plug this gap, with typical investments anticipated to be between £100,000-250,000. The RVCFs will be managed as separate companies and run by approved independent fund managers appointed by the small business service and supported by the nine regional development agencies. Barclay’s has allocated more than £20m in equity and in excess of £40m in debt. The capital is not yet available for allocation by the funds, but will become available in late 2001 and throughout 2002. The RVCFs may also receive investment from other private sector companies as well as public-sector pension funds. A minimum of 25% of the total value of the funds will be provided by the DTI.

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