As entrepreneurs continue to struggle with funding problems, Smarta would like to raise a toast to Towergate founder Peter Cullum, who has decided to take the fates of small businesses into his own hands and start an investment group for new businesses.
The insurance magnate, who is reported to have made £1.7bn in 2008, is due to launch his £10m found to support new financial and personal services companies tomorrow during the opening of his Centre for Entrepreneurship at Cass Business School.
Cullum paid heed to entrepreneurs’ perseverance in this morning’s Telegraph: “It was difficult in April last year for young entrepreneurs to raise funds and it’s probably five times more difficult now.
“This is relatively high-risk. We are not ignoring the risk profile but the returns we are looking for from the fund are not what a private equity firm would look for.”
He added that competition looked likely to be fairly heavy. “We have £10m available but we will probably be able to invest that in the first four weeks.”
If you want to get your hands on the money, we may have some bad news: the fund is currently only open to students, employees and alumni of the Cass Business School.
Still – it’s nice to see at least one entrepreneur looking to help those in crisis.