
Mercia Asset Management
Description
Mercia Asset Management is a prominent UK-based specialist asset manager dedicated to supporting high-growth businesses across the country's regions. Headquartered in Henley-in-Arden, Mercia operates with a unique model that combines direct balance sheet investments with the management of third-party funds, including venture capital trusts (VCTs), enterprise investment schemes (EIS), and significant regional funds like the Northern Powerhouse Investment Fund and Midlands Engine Investment Fund. This dual approach allows Mercia to deploy substantial capital and foster economic development outside of London, aligning with its mission to unlock the potential of regional innovation. As of its latest reports, Mercia manages over £1 billion in assets under management, underscoring its significant presence in the UK venture landscape.
The firm's investment strategy spans the entire funding lifecycle, from early-stage seed investments to later-stage growth capital. Mercia typically provides initial cheques ranging from £100,000 for nascent startups, particularly through its Seed EIS and early-stage venture funds, up to £10 million for more established companies seeking growth capital. This broad investment mandate enables Mercia to support businesses as they scale, often participating in follow-on rounds and leveraging its extensive network. Their flexible approach allows them to invest across various sectors, though they have a notable track record in areas such as deep technology, life sciences, and digital innovation.
Mercia's commitment to regional ecosystems is evident in its expansive portfolio, which encompasses over 500 businesses supported across its various funds and direct investments. This extensive reach provides a robust pipeline of opportunities and demonstrates Mercia's role as a key financial partner for entrepreneurs outside the traditional London tech hub. By providing not just capital but also strategic guidance and access to a network of expertise, Mercia aims to build sustainable, high-growth companies that contribute significantly to the UK's regional economies. Their integrated model, combining direct investment with fund management, positions them as a comprehensive and impactful investor in the UK's venture capital ecosystem.
Investor Profile
Mercia Asset Management has backed more than 97 startups, with 2 new investments in the last 12 months alone. The firm has led 61 rounds, about 63% of its total and boasts 14 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Series Unknown, Series A, Seed rounds (top funding stages).
- Majority of deals are located in United Kingdom, United States.
- Strong thematic focus on Software, Information Technology, Manufacturing.
- Led 2 rounds in the past year.
- Typical check size: $100K – $10M.
Stage Focus
- Series Unknown (42%)
- Series A (19%)
- Seed (19%)
- Series B (6%)
- Pre Seed (4%)
- Debt Financing (3%)
- Convertible Note (2%)
- Grant (1%)
- Equity Crowdfunding (1%)
- Series C (1%)
Country Focus
- United Kingdom (97%)
- United States (3%)
Industry Focus
- Software
- Information Technology
- Manufacturing
- Biotechnology
- Internet
- Health Care
- Medical Device
- Analytics
- Computer
- Saas
Frequently Asked Questions
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