London-based fund manager and investor MMC Ventures has won a competitive tender from the London Mayor Boris Johnson to launch a new £11m ($16.8m) fund for investment in the capital.
The ‘matching fund’ means that at least £22m will be pumped into the capital’s firms.
The new investment will focus on businesses creative industries, software for financial services, leisure, education and healthcare and is expected to create over 420 jobs over the next two years.
Although the formal announcement of the fund will be made tonight, MMC has already completed five investments in London SMEs, including Masabi, LoveHomeSwap and MBA & Company.
London Mayor, Boris Johnson, said: “London’s small to medium companies are a vital component of this city’s economy, supporting significant numbers of jobs. It is a top priority for me that these entrepreneurial enterprises receive practical support to thrive and grow, not least as many have the potential to become major employers in the future. This innovative equity fund is using public and private money in order to offer much needed financing when more traditional routes are not available.”
The Deputy Mayor for Business and Enterprise and LondonlovesExcellence Awards judge Kit Malthouse said, “We’ve listened to London’s small business owners and know that getting access to finance can be challenging. The MMC London Fund will invest money to support fast-growing businesses today, using returns from the investments to support even more companies in the future. This is a win-win for all involved.”
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