Northstar Ventures launches EIS Growth Fund to ‘supercharge’ tech firm success

A venture capitalist has launched a new endeavour to “supercharge” tech firm growth.

Northstar Ventures has unveiled its first-ever enterprise investment fund.

Known as the Northstar EIS Growth Fund, it will back the region’s highest potential scale-ups working across areas including clean tech and healthy ageing.

Delivering additional capital to firms with established management teams, business models and revenue traction, bosses say it will provide individual investors with opportunities to benefit from tax efficient, venture-scale returns.

They add it will seek to mirror Northstar’s support for companies such as eco-friendlier aggregate maker Low Carbon Materials and Washington-based electric powertrain maker Advanced Electric Machines, which late last year secured £23 million investment.

The first close of the EIS fund is planned for the end of March, with investments set to be made in a diverse portfolio of up to six businesses during the 2024/2025 tax year.

The fund will be officially launched at an event in Zerolight’s offices, in Newcastle, on February 6, from 5pm, with further Q&A sessions scheduled for February 16, March 1 and March 15.

Meanwhile, Northstar has strengthened internally ahead of the fund’s roll-out with the appointment of Ed Twiddy as board chair.

The former North East Local Enterprise Partnership director and current Atom bank director of environment, society and government has replaced David Hickey, and says he is looking forward to “finding and funding the next generation of great companies in the region”.

He said: “For the next phase of Northstar’s evolution, the firm needs to be fit to support the devolution agenda, ready to commercialise the innovation coming from our university partners and able to find entrepreneurs from all parts of society who have the creative spark and drive to build more great firms in our region.

“That’s a wonderful vision and goal to be involved in,” added Ed [pictured, above], whose CV also includes roles at Durham University and Tyne Rivers Trust, and time with the Treasury.

Hailing his arrival, Alasdair Greig, Northstar Ventures’ director, said: “We are expanding our range of venture funds, including a move into EIS, and Ed’s experience in government and as an entrepreneur will be hugely valuable.

“David has been a valuable guide and mentor to the executive team, and we thank him for his help and support.”

For more information about the Northstar EIS Growth Fund, visit www.northstarventures.co.uk/funds/eis-fund/