Enterprise Minister Arlene Foster has announced the launch of Techstart Northern Ireland as part of its Access to Finance strategy.

The new fund will provide support for ‘seed’ and early-stage technology businesses and university spin-outs.

The initiative is supported by a £13 million SME equity fund, two university funds of £1.5 million each and a Proof of Concept grant fund of £7.6 million.

Mrs Foster said: “Techstart NI will be an important element of the ‘enterprise escalator’ continuum of funding and other forms of support to ‘seed’ and early-stage businesses, with an emphasis on technology-based firms.

"It is intended to boost private-sector growth, ensuring that technology companies with high growth potential are not held back because they cannot access finance or first-rate commercial mentoring.”

The fund will operate for 10 years and will be managed on a wholly commercial basis by Pentech Ventures LLP. The Minister added: “Pentech has an impressive track record of working in early-stage venture capital.

"This initiative will be an important part of Invest Northern Ireland’s Access to Finance suite of funding, which now totals £160 million over six funds. To date, over £48 million of investment has been made through these funds, helping over 400 businesses access the finance they need to grow and develop.”