Millions of pounds will be invested in regional startups in a bid to address geographic imbalances and to diversify the availability of angel finance.

Ten-million-pounds has been committed by the commercial arm of the British Business Bank to venture capitalist Syndicate Room, which is one of the most active early stage investors in the UK.

Over a five-year period Syndicate Room plans to target a minimum of 250 investments.

Judith Hartley, CEO, British Business Investments, said:

“Our Regional Angels Programme is designed to increase the amount of capital available to smaller businesses with high growth potential. With this £10m commitment from British Business Investments, Syndicate Room will be able to increase its support for startups and early stage businesses of all sizes, so they can flourish and grow.”

Francesca O’Brien, Head of Investments at Syndicate Room said:

“We use a unique data- driven approach to investing and have developed ground breaking analytics to map the UK startup equity market. Our strategy uses data and diversification and aims to build consistent returns by investing alongside angels with a proven track record. Alongside British Business Investments and other institutions we have over 300 retail investors invested into our fund. They have invested as little as £5,000 (a far cry from the time of the £20,000+ minimum of most EIS funds) and as much as £250,000 and are all backing British companies. We are delighted to see British Business Investments’ commitment and the fund will remain open for those who want to invest across a portfolio of the most promising early stage British companies.”