Venture capital remains a dependable source of financing for businesses with rapid growth potential, according to a Birmingham fund manager.
Midven, which manages five funds worth £61 million, said its deal flow was consistent over the past 12 months.
“During 2011 we made a total of 28 investments, supporting 17 new businesses in the process and the pipeline of investments currently being closed is very strong,” said chairman Brian Blakemore.
“This level of investment is against a continuingly difficult economic climate where output has been flat and only very modest growth forecast for the rest of this year.”
Midven has invested in small and medium-sized enterprises in the Midlands in a variety of sectors including software, biotechnology, healthcare, engineering, manufacturing and distribution.
It works with management teams to build profitable businesses that will be attractive acquisition targets.
Mr Blakemore added that much good work continued to take place in the West Midlands and he remained “realistically positive” for the future. “There are many good things happening in business in this region and we only have to look at some of our portfolio companies to see that substantial profitable growth is achievable if you have the right focus, strategy and commitment,” he said.
“This has been reflected in a number of positive realisations where we achieved money multiples of seven times on both occasions.
“We should recognise the difficulties that affect us all but should retain a realistically positive view on the future.”