Community News

KC launches start-up finance fund to boost local economy

KC has launched an investment fund of £300,000 to provide start-up and growth financing for business

(L-R) Sean Royce, Peter Sykes and Alan Gordon-Freeman

KC has launched an investment fund of £300,000 to provide start-up and growth financing for businesses in the digital and technology sectors.

Through the fund, called KC Invest, KC hopes to stimulate business growth in the Hull and East Yorkshire economy and help create new, sustainable jobs for local people.

The KC fund will be administered by two local enterprise agencies, the Acorn Fund and Sirius. They will each receive £150,000 from KC to distribute as loan financing to business start-ups and expanding businesses in the sectors KC is focusing its support on.

Both the Acorn Fund and Sirius are Community Development Finance Institutions that are able to deliver loans through the European Regional Development Fund (ERDF). Because the financing provided by KC will be matched by ERDF, the total cash available to local businesses will be £600,000. 

People who apply for KC Invest funding through the Acorn Fund or Sirius will also have access to mentoring and support to make sure their fledgling business has the best possible chance of long-term success. Feasibility grants will also be available to fully explore business ideas where more market research is needed before financing is agreed.

 KC has launched the fund in the wake of the economic crisis and banks’ resulting reluctance to provide affordable financing for small businesses.

Sean Royce, KC’s Finance and Commercial Director, said: “The ‘perfect storm’ caused by the banking crisis and public sector cuts mean that not only is the job market depressed, but it’s also harder than ever for people to obtain finance to set up their own businesses and create work for themselves and others.

“Yet we need those new businesses more than ever now to stimulate growth and help the country’s economic recovery.

“Through the KC Invest fund we want to give practical support to new business start-ups to help support the local economy and create new jobs.

“While we have the desire and resources to do this, we’re not experts in small business support, which is why we’re partnering with the Acorn Fund and Sirius, who both have excellent and long track records in supporting new business start-ups.”

Peter Sykes, Fund Manager at the Acorn Fund, said: “KC’s commitment to the local enterprise economy is to be commended. We cannot have enough of this type of financial and hands-on support for new start-ups. It is to be hoped that the KC Invest fund can set an example of other leading local employers to get involved in the local community in a way that can help breathe new life into our economy.”

Alan Gordon-Freeman, Managing Director of Sirius, said: “This is a fantastic opportunity for those involved in technology to develop and grow their own businesses. The funding can help to attract other forms of finance as well as bring other specialist support such as business management and marketing.

“KC should be applauded for this innovative community support; it will certainly go a long way in helping to create new businesses, new jobs, local wealth and more career choices in the future.”

KC hopes that KC Invest is the start of a surge of private sector investment in the region, with other large local businesses providing funding for start-ups within their sectors using the blueprint it has established. It is hosting a seminar on Friday 9 September at the Hallmark Hotel in North Ferriby where local businesses and business support agencies can find out more about how KC Invest is set up and how it operates. The seminar will be opened by the Rt Hon Alan Johnson MP. To register to attend email invest@kcom.com or call 01482 602396.

More information about KC Invest can be found on our website here. People who are interested in applying for KC Invest finance can contact the Acorn Fund on 01482 324976 or Sirius at 01482 890146.