NESTA looks to private sector to aid distribution of £50m Fund for early-stage start-ups

02/01/2007

"As the Chancellor clearly stated in the Pre-Budget Report, innovation is the key to a globally competitive nation. This fund seeks both to help tomorrow's innovators move forward and, by focusing on commercial viability, to act as a trailblazer for the private sector, highlighting the benefits of early investment."

Drawing heavily from the Venture Capital sector, the committee, which includes Apax partner, Adrian Beecroft and MTI CEO and Managing Partner, Ernie Richardson, reflects NESTA CEO Jonathan Kestenbaum's desire to bring a commercial ethos to the way public funds are invested.

Joining Adrian and Ernie is former Deloitte partner, Ian McIsaac, an expert in global risk management and the current Finance Director and Registered Treasurer of the Conservative Party; Sherry Coutu, a serial entrepreneur and well-known early-stage technology investor, and NESTA Chairman, Chris Powell.

The investment committee also draws from the public sector to include innovation expert and entrepreneur Marc Clement, Head of the Department of Research and Innovation at Swansea University.

The Fund will look to invest £10 million each year, offering innovative start-ups seed money of between £50,000 and £150,000, and up to £500,000 in further rounds of finance. In addition to this financial input, companies will also receive mentoring and support from NESTA.

The committee's combined experience reflects the Fund's focus on identifying, investing in and supporting particularly innovative early-stage companies in the ICT, healthcare, technology and environmental technology sectors.

Commenting on the new committee, NESTA Chief Executive, Jonathan Kestenbaum said: "As the Chancellor clearly stated in the Pre-Budget Report, innovation is the key to a globally competitive nation.

"This fund seeks both to help tomorrow's innovators move forward and, by focusing on commercial viability, to act as a trailblazer for the private sector, highlighting the benefits of early investment."

David Hunter, MD of NESTA Investments:
"With this sizeable fund our end goal is not just the sustainability of individually innovative companies but the prospect of exploring different models of equity finance for these types of businesses."

NESTA spokespeople are available for comment and interview. Please contact our press office on 020 7645 9583 or 07957 156759

Biographies

Chris Powell
Chris Powell is Chair of NESTA and of the Institute of Public Policy Research's think tank and the British Council's creative industries advisory group. He is a board member of United Business Media plc and Riverside Studios and a director of advertising agency, BMPDDB.

Adrian Beecroft
Adrian Beecroft was, until very recently, Chief Investment Officer at Apax. He was one of the founding partners and played a major part in the international expansion of the business and its transformation from managing £10m to over $20bn. Adrian is the sponsor of the Beecroft Institute of Particle Astrophysics and Cosmology at Oxford University, a Fellow of the Institute of Physics, and a trustee of charity, Impetus Trust.

Marc Clement
Marc Clement is Head of the Department of Research and Innovation at Swansea University and the newly appointed trustee for Wales for NESTA. A chartered engineer, chartered physicist and Fellow of the Institute of Electrical Engineers, Marc is also an entrepreneur. He founded a laser company based in South West Wales, developing laser systems for plastic surgery and cancer therapy.

Sherry Coutu
Sherry Coutu is a trustee of NESTA and a non-executive director at RM Plc, New Energy Finance Limited and Library House Limited. Her other activities include investing in early-stage companies, guest lecturing in Entrepreneurial Finance at London Business School, being vice chair of the Prince's Trust Business Technology Leadership Group, and a member of Cambridge University Finance Committee and the Harvard Business School European Advisory Council. She is also a venture backed serial entrepreneur.

Ian McIsaac
Ian McIsaac is Finance Director and Registered Treasurer of The Conservative Party and a member of the Party Board. A chartered accountant, Ian was, until his retirement, a partner in Deloitte, where his last major role was as a managing partner of global risk management. He is a Governor of Sutton's Hospital in Charterhouse and a board member and trustee of the City Disputes Panel.

Ernie Richardson
Ernie Richardson is CEO & Managing Partner of MTI, joining in 1985 after working as the chief financial officer in a start-up venture in the oil processing sector. He is a director and chairman of several of MTI's investee companies with a general focus on software and communications. At MTI he has been responsible for a number of its most successful transactions. He became CEO & Managing Partner in 2003.