The programme, which partners with the Innovation SuperNetwork, NorthInvest and the UK Business Angels Association, will encourage investment in innovative early stage companies.
Northstar Ventures has also secured £1m to work directly with start-up businesses coming out of North East universities to help them secure angel investment and grant funding to accelerate their growth potential at an earlier stage.
The funding will be used to identify suitable investment opportunities and investors, as well as provide grants to businesses to deliver innovation projects with a view to longer term business angel involvement and future commercial success.
Successful businesses will receive a grant of up to 50 per cent of the costs of a specific innovation project, which lasts up to 12 months and have total project costs between £40,000 and £300,000.
Founder of NorthInvest Professor Adam Beaumont said: “My founding belief was to create an organisation which could drive grass roots growth through investment.
“The award of this fund is an important milestone in the evolution of Northinvest, moving from not only driving private angel investment, but having co-funds to manage as part of that funding process.”
Jake Berry, Northern Powerhouse minister, added: “The importance of investing in a broad base of entrepreneurism across the North is a key tenet of achieving a true depth and strength to the Northern Powerhouse. Initiatives such as this, which can bring together public and private funds in an agile manner, have been borne out of the kind of cooperation which makes the North a great place to do business.”
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