KeTech, a Bedford-based software company, has become the first investment done by the Capital for Enterprise Fund, the Government venture initiative launched in January 2009 to support companies hit by the credit crunch.The Fund will provide £75 million of equity, made up of £50m of Government funds and an additional £25 million from Barclays, HSBC, Lloyds TSB and RBS. Its target purpose is to provide equity and quasi equity of £250,000 to £2 million for companies which meet the European Union’s definition of a Small to Medium Sized Enterprise and have viable business models and growth potential in need of long term capital.
It was reported that the Fund has three other investments in the pipeline.
KeTech Group sells software integration services to companies such as Chiltern Railways, Metronet and Mitie, will receive £2m as part of a £4.5m refinancing that includes £2.5m in invoice discounting from Centric Commercial Finance. The company had doubled its sales to £16m since 2006 and employs 100 people at six UK sites.