Creative England in partnership with Triodos Bank UK – has today launched a £24m fund to provide vital scale up finance to the UK’s most promising creative businesses.
The fund will target post-revenue, IP rich SMEs, that have reached a point of scale that requires supporting finance. At present, the scale-up window for creative industry SMEs sees 72% suffering from a lack of growth capital.
The fund will be supported in part by Triodos Bank UK, the specialist ethical bank, in addition to Creative England. Launched at a time where traditional lending to SMEs has reached an all-time low, it will be deployed across the creative industries, subject to an application process underpinned by viable investment potential.
Serving as a key differentiator to traditional SME lending, in addition to individual loans deployed, Creative England will provide counsel that is aligned specifically to growth in the creative industries via a regional network of investment and sector specialists. Testament to Creative England’s active involvement in the support of investee companies in this arena, a record 83% of businesses supported by Creative England have succeeded past year 3, compared to the national average of 60%.
The landmark fund aims to unlock the latent potential of a key economic growth engine that contributes over £100bn in gross value added to the economy, employing one in 10 across the British Isles while maintaining its status as one of the most future-proof industries. Over the past seven years, Creative England has invested over £20m in the creative industries; with 81% of this investment deployed outside of London and the South-East.
This continues their previous lending activity, which is designed to support business growth and build inclusive growth by benefiting local communities and regional development. Testament to this objective, 45% of CreativeEngland’s historical finance activity has created jobs in areas with the highest economic need. This new fund will be UK-wide and available to businesses in the devolved nations as well as England.
Caroline Norbury – CEO of Creative England said: “Our country’s greatest industrial asset is our people and their ideas. If we want to translate from ambition to bottom-line growth, then continual investment is a must. Access to transformative risk capital to enable creative entrepreneurs to evolve from small businesses to scaleups that can add value to UK Plc, hinges on the ability to access a level of finance that is – in its current state – notoriously inaccessible.
“The launch of today’s fund ensures a shift in the ecosystem for lending across the creative industry. Beyond the finance itself, Creative England’s national support-network differentiates today’s launch from a traditional loan facility, into an opportunity to access expertise and counsel and connect to the relevant networks that sustain businesses at the cutting edge of their craft. The fund has been launched with creative excellence and economic prosperity at its core and is the first of many investment platforms that will continue to leverage these objectives.”