The Advantage Early Growth Fund

The £8m Advantage Early Growth Fund is a region-wide, venture capital co-investment fund set up with UK Government capital to assist early stage, West Midlands based, businesses with growth potential.  It matches risk capital provided by business angels or other private sector investors on the same terms.

The Fund was launched in February 2004 with £5m support from the DTI and a plan to make equity funding a commonly accepted method of financing early stage businesses in the West Midlands region.  It does this by demonstrating that venture capital can be a constructive and supportive source of 'patient capital' whilst seeking to maximise the profits on investments. 

In November 2006 the regional development agency, Advantage West Midlands, provided a further £3m of capital to support the substantial investment rate that the fund is achieving; approximately one investment per month making AEGF one of the most active Venture Capital investors in the UK. AEGF is also supported by the European Regional Development Fund.

AEGF is very rare amongst venture capital funds because it does not charge any fees for making an investment (including the costs of legal and due diligence work).