The Investment Fund for Northern Ireland (IFNI) has deployed £5.95m of equity investment in its first year of operation, leveraging a total of £14.6m of investment across deals with six local companies.
The data was released by Clarendon Fund Managers, which manages the IFNI’s equity fund, as it announced the sixth of the deals, a £750,000 investment in Banbridge-based Stora Software.
Stora, which provides self-storage management solutions, has also secured £550,000 of additional funding, giving a total of £1.3m of investment, which the company plans to use to accelerate sales and target customers in new markets.
The IFNI was launched by The British Business Bank to tackle an identified funding gap, with the aim of driving sustainable economic growth by supporting innovation and creating opportunities for new and scaling businesses.
The £70m investment fund offers businesses a range of commercial financial options including debt finance and equity investments to support businesses from all sectors in Northern Ireland and at different growth stages. Clarendon manages the £33m equity fund and can provide equity stakes in smaller businesses up to £5m.
In the first 12 months it has invested in medtech company Cirdan in Lisburn, Belfast connected Pilates reformer manufacturer ReformRX, capital markets data company INQDATA, corporate gifting business Needi in Armagh and Belfast-based cocktail manufacturers Cocktail Keg Company.
Sian McLaughlin, Senior Investment Manager at Clarendon Fund Managers, said: “We have seen a huge amount of interest from companies exploring equity as a strategic tool for business growth and it has been very encouraging to see that interest coming from businesses in multiple industries and from all parts of Northern Ireland.
“As we head into a new year we have a number of other deals in progress and a strong pipeline of prospects, but we continue to welcome approaches from businesses with an appetite for expansion.”
Stora’s software platform helps self-storage facilities to automate administration and helps them to maximise sales, reduce costs and save time. The business plans to use the funding round to expand further into the UK market and begin selling its product in other geographies, including Europe and the US.
Gavin Shields, CEO of Stora said: “Stora has grown rapidly and is now used by almost 20% of the self-storage facilities in the UK. This funding will help us invest in continued innovation as we expand the business into new geographies and customer segments. In the last six months, we have almost doubled our team to 22 full time staff as we invest to accelerate this growth.”
Mark Sterritt, Director of Nations and Regions Investment Funds, British Business Bank said: “It has been a very successful first year for the Investment Fund for Northern Ireland. In addition to the £5.95m in equity finance deployed, the debt funding element of IFNI takes the total investment in Northern Ireland companies to over £10m.
“Our fund managers have been doing an excellent job and it is encouraging to know there is a strong pipeline of equity and debt funding deals to come. The latest deal with Stora Software is an excellent example of how the fund supports innovative companies throughout Northern Ireland to take the next step on their growth journey.”
To find out more about the Investment Fund for Northern Ireland visit http://www.investmentfundnorthernireland.co.uk