Invest Northern Ireland - NISPO II Fund Manager for SME's and Universities.

Descriptions

Through this tender Invest NI and the universities propose to establish NISPO II, an integrated suite of equity and grant funds and a capability programme for Investment Awareness. An economic appraisal has been completed, which provides evidence that there is actual and potential demand for GBP 23.6 million equity and grant funding. This comprises a GBP 13 million SME equity fund, two university funds of GBP 3 million in total and a GBP 7.6 million Proof of Concept grant fund; there is also a capability gap for investment awareness.The objective of NISPO II is to provide:— A GBP 13 million SME equity fund for seed and early stage investment; potential investee companies will be technology based, demonstrating high growth potential and export prospects; Invest NI is the sole investor in the fund although match funding of no less than 30 from private investors is required on a deal for deal basis;— 2 university funds of GBP 1.5 million each for post Proof of Concept investments to spin out from or spin in to the universities and commercialise research/intellectual property; typically at seed stage. Potential investee companies will be technology based and have evidence of high growth potential. Invest NI will be a limited partner alongside each university for its specific equity fund;— A GBP 7,6 million SME Proof of Concept grant fund where individuals or SMEs can demonstrate the need for the testing of an innovative concept in order to prove it pre commercialisation; and— An Investment Awareness Programme to address cultural resistance to third party equity investment – to create awareness, to educate and to improve investment readiness.The structures to be used for the delivery of NISPO II for SMEs are:- The SME equity fund will be established using a Limited Partnership structure with a ten year term (subject to extension in accordance with the Limited Partnership Agreement constituting the Limited Partnership). The fund's typical investment range will be between GBP 50 000 and GBP 250 000, targeting SMEs registered or substantially based in Northern Ireland;- The two university funds will also be established using a Limited Partnership for each fund with a ten year term (subject to extension in accordance with the Limited Partnership Agreement constituting the Limited Partnership). The funds' typical investment range will be between GBP 50 000 and GBP 250 000, targeting university spin outs or spin ins.- A Proof of Concept Grant Fund Management agreement, which passes the full grant management function to the fund manager. The agreement will have a six year term. Grant awards must be completed by the end of year 5 and year 6 is to allow final claims to be received and remaining grants paid. Grants of up to GBP 40 000 will be available at a 100 % grant rate of third party costs to individuals or SMEs where an innovative concept is eligible to be proven prior to going to market; and- The Investment Awareness Programme is to be delivered under a contract for services with a five year duration.