A national venture capital firm with an office in Birmingham is on course to beat last year’s record investment of £19.7 million.
Enterprise Ventures (EV) invested £5.4 million in 41 transactions in the three months to the end of September 2012, bringing the total value of deals so far this year to £17.3 million.
EV manages funds totalling £130 million including the Coalfields Funds, which provide finance for start-ups and SMEs in former mining areas of the Midlands.
EV chief executive Jonathan Diggines said: “Uncertainty in the economy appears to have dampened demand for investment funding overall.
“At the same time those entrepreneurs who are planning new ventures are more active in seeking out alternative sources of finance as they fear rejection by the banks. We have continued to achieve a steady flow of enquiries and investments.
“EV is now one of the largest and most active providers of finance to businesses in the sub-£10 million turnover category.
“It is these smaller firms that struggle most to find funding currently, as even where investment funds are targeted at SMEs, conventional funders consider it safer to invest in those at the higher end of the turnover range.”