Mercia Asset Management has increased the amount of capital it has invested by 24% in the first half of the year, compared with the same period in 2022.
Despite the wider downturn in funding this year, Mercia, which largely backs regional businesses, invested £94.6m in the first six months of the year, up from the £76m invested in H1 last year.
The firm said that 85% of that capital went to businesses outside of London, in line with Mercia’s goal of backing regional enterprises.
“Mercia was founded in 2010 to bridge funding gaps across the UK. Despite regional disparities, we have been able to pick winners throughout the UK and we are trusted time after time by investors and business founders,” said Dr Mark Payton, CEO of Mercia.
“With a continued focus on diversity, equity and inclusion, Mercia is also exploring ways to engage with communities that have yet to fully connect to capital providers, and we intend to play an active role in changing this.”
Mercia typically invests sums of £500,000 to £10m in early-stage and growth businesses through a combination of equity and debt financing. The firm also helps manage third-party investment funds, including the Northern Powerhouse Investment Fund (NPIF), the Midlands Engine Investment Fund (MEIF) and the North East Venture Fund (NEVF).
Over the first half of the year, Mercia has invested in companies such as Sitehop, a Sheffield-based encryption firm; Zedify, an electric bike parcel delivery network and Medherant, a spinout from the University of Warwick that has developed a hormone patch for menopausal women.