By Nick Turner

Published at 11:00, Friday, 13 July 2012

A Carlisle entrepreneur has called on Cumbrian firms to follow his lead and take advantage of the venture capital investment that is helping to fund the rapid growth of his business.

Islam Pearson runs the renewable energy firm EcoLogicLiving with his wife, Judy, and securing £500,000 investment thought the North West Fund which will kick-start an expansion that should see turnover over the next three years and staff numbers increase from 19 to 35. 

The money comes from the North West Fund for Energy and Environmental which is managed by CT Investment Partners.

The backing also comes with extensive business support from the fund managers who take an active role in business planning. The deal also involved them taking a 23 per cent in EcoLogicLiving for their duration of their funding.

Mr Pearson said: “A lot of friends and family tried to warn me off – thinking that venture capital meant vulture capital., but it’s not like Dragon’s Den – they’re not trying to get 60 per cent of your business, but are there to support you.

“It’s not cheap money, but it makes you work harder because it is not a grant which is free money. You know you have to give the money back – there is an exit strategy – and that give you an incentive psychologically to work harder.”

In its first 18 months the North West Fund, which is supported by the European Investment Bank and European Regional Development Fund, has already invested £25 million in 95 businesses in the region – but only two of those have been in Cumbria.

Mr Pearson fears that there may be because of tendency to risk adversity among Cumbrian businesses, but added: “People need to be bold and thing big and there is a lot of support to help them grow their business.”

The North West Fund has up to £400 million to invest in the region with support from co-investors as well as Europe.
The money has to be invested by 2015 and as investments are paid back an on-going fund will be created to fund hi-growth businesses into the future.

It is made up of six separate funds, each with their own specialist managers: Development; Venture; Business Loans; Energy and Environment; Biomedical and Digital and Creative.

Spokeswoman Julie Brooks said: “This a great opportunity to create prosperity and employment for the region.
“We would like to see more applications from Cumbria and have some in the pipeline as well as the two investments we have made.”

For more information about the North West Fund go to: www.thenorthwestfund.co.uk

Published by http://www.in-cumbria.com