a venture capital fund for the creative industries

www.advantagecreativefund.co.uk

A Venture Capital Fund for the Creative Industries

Kath Morgan


Brief History• Pilot fund launched in 2000

• Pilot -16 investments in 13 businesses investing £1.3 million

• ACF launched in 2003

• Project completion date of December 2008

• £5.4 million to invest into West Midlands’ creative industries over 5 years


The ACF• Funded by the public sector to act in an

area of market failure

• Small scale equity investments (£10k -£250k) into creative businesses capable of growth

• Double bottom line

• Evergreen


The ACF• Virtual business model

• Advantage Creative Services to manage business support

• Da Capo Enterprises created to manage micro investments


ACF achievements• 81 investments into 55 companies,

investing £5,415,618

• Average investment £98k

• 320 new jobs created; 210 jobs safeguarded

• Turnover created in businesses of £27m


ACF achievements cont..• Private sector leverage of £5.8m

• 111 businesses assisted with investment readiness

• 877 applications and 319 business plans reviewed

• 2 exits, £428k realisations as at August 09

• 27% failure rate against expected 40%


Lessons learned• Separate organisations managed the pilot

CAF and the ACF – Problematic

• Money with Management is critical to success

• Integrated infrastructure to support the business from start-up to established

• Evergreen??


Development of model• Flexibility vital – grants/loans/equity

• One Stop Shop for the creative business

• Escalator of finance/ business support

• Long term commitment from sponsors, financially and strategically

• Networks vital – with sponsors, with other intermediaries, with creative sector

• Integrated infrastructure

a venture capital fund for the creative industries

Economy & Finance