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Edge to quench ‘funding drought’

The UK investment firm that helped fund children’s series such as The Clangers and Poppy Cat has raised £40m (US$61m) to pump into Britain’s creative sector.

Edge Creative Enterprise Fund is described by the firm as the first British Business Bank-supported fund to address the current ‘funding drought’ for creative industries.

The multi-million pot has been created with support from the UK government and will invest in high growth companies in industries specialising in IP creation.

It is committed to backing fast growing and revenue generating small and medium-sized creative companies with IP assets of their own.

Edge said that such companies are “poised to benefit greatly from the growing digital economy.”

The creative economy accounts for approximately 10% of the entire UK economy and provides 2.55 million jobs, Edge added.

The fund is targeting a minimum three times return for its private investors over its seven to ten year life.

David Glick, Edge Investments’ CEO, said: “Our view is that a high degree of sector knowledge mitigates risk and also allows us to assess the most promising opportunities and most talented executives.

“There are nearly 160,000 creative industries businesses in Britain yet despite being in this high growth sector, many of them find it difficult to attract adequate capital to maximize their potential.”

Ken Cooper, MD of Venture Capital Solutions at British Business Bank, added: “The creative industry is of increasing importance to the wider UK economy and we are particularly pleased that this fund will ensure these high-growth businesses have access to the finance they need to scale.”

The new fund will be formerly announced at the launch event for a new finance guide for the sector, Creative Industries: Routes to Finance, at London’s National Theatre this morning.

Since launching in 2006, Edge Investments has raised almost £200m and has provided funding for prodcos such as Coolabi, owners of IP including The Clangers and Poppy Cat.

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