Tag Archive: low carbon

Jun 20 2017

Low Carbon Innovation Fund evaluation

We undertook a three stage evaluation of the Low Carbon Innovation Fund (LCIF), commissioned by the University of East Anglia (UEA). LCIF is a regional venture capital fund in the East of England funded by the European Regional Development Fund (ERDF) in the 2007-2014 programme. It has fully invested its funds of £20m+, intended for early stage equity investments in small and medium enterprises (SMEs) which are developing new and innovative products, services or processes in a low carbon, environmentally sensitive manner.

Our final report is available, in summary (download) or in full on request to LCIF . We produced a further impact report in April 2017, on performance to the end of December 2016,

The Fund is operated by UEA as part of the Adapt Low Carbon Group and managed by City firm, Turquoise International.

The Initial Review concentrated on the management of the Fund from operational, strategic and financial perspectives, with the subsequent stages concerned progressively more with outcomes of the Fund: actual and likely impacts on company performance and jobs, and contributions to the low carbon objectives of ERDF in the region. Our recommendations have informed the delivery and marketing of the Fund, which is proving highly successful in attracting co-investment and fostering innovation.

We carried out the evaluation in conjunction with Futureneering Ltd, Cambridge-based consultants who bring complementary expertise in low carbon technologies.

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Permanent link to this article: http://www.educe.co.uk/?p=1313

Jun 20 2016

Venture capital for low carbon businesses

We prepared the first phase of an ex ante evaluation of the Low Carbon Innovation Fund England (LCIF England) on behalf of the Adapt Low Carbon Group at the University of East Anglia. This was proposed as an early stage venture capital fund to back growth businesses which are developing innovative products or processes in a low carbon, environmentally sensitive manner. It was progressed in collaboration with a number of Local Enterprise Partnerships (LEPs) and intended to secure funding through European Union funding for 2014-20.

The concept of LCIF England was based on that of the successful Low Carbon Innovation Fund established under the European Regional Development Fund (ERDF) programme for the East of England 2007-2014. This fund has matched £20.5m ERDF with over £50m private sector co-investment, assisting 72 companies to access risk capital.

Our research concentrated on a market assessment, of the demand and supply of risk capital for innovative businesses, set in the strategic and policy context. We made full use of  relevant small business and equity capital research and data sources, including the very valuable Beauhurst database of deal activity which allows analysis at the level of Local Enterprise Partnerships.

Plans for LCIF England have had to be changed dramatically in the light of changes in ERDF policy and delivery arrangements, with procurement decisions in the hands of individual LEPs. Our research, however, provides a platform for a number of LEPs in taking their own, joint funds forward.

Ex Ante Evaluation
For any new fund, or ‘Financial Instrument’ in EU terms, there is a requirement to prepare an ‘ex ante evaluation’. This work is designed to ensure the development of robust business case for any fund, while meeting government and EU requirements. Objectives include:

  • substantiating the case for public funding, based on evidence of market failure in addressing funding gaps for growth businesses and added value a fund can bring
  • ensuring that lessons are learnt from the experience of relevant early stage VC funds such as LCIF
  • informing how the Fund will work: its investment strategy, its governance and management, and how it will work in participating LEP areas

We carried out the ex ante evaluation in conjunction with Futureneering Ltd of Cambridge. Together, we bring complementary expertise in economic development, low carbon technologies, risk capital and evaluation.

Permanent link to this article: http://www.educe.co.uk/?p=1319

Oct 20 2010

Carbon Connections evaluation

Carbon Connections was a low carbon innovation development fund led by the University of East Anglia (UEA). It was one of 11 three-year projects supported by the Higher Education Funding Council for England (HEFCE), under the Higher Education Innovation Fund (HEIF) between 2007 and 2009.Educe were commissioned to assess the qualitative impact of the fund, and draw lessons and pointers to inform the strategic development of similar programmes. We provided UEA with an overall evaluation framework, with our research complementing other evaluative data from individual projects and a separate assessment of carbon reduction gains.The evaluation considered, amongst other things, forms of added value generated by the programme, the role of project co-ordinators as brokers/relationship managers, and perspectives from venture capital organisations and private sector partners.

UEA’s experience in managing Carbon Connections led to their success in securing ERDF funding for the Low Carbon Innovation Fund (LCIF), a regional venture capital fund in the East of England aimed at SMEs who are developing innovative products, services or processes in a low carbon, environmentally sensitive manner. Educe have since been commissioned to undertake the evaluation of LCIF, in conjunction with Futureneering Ltd.

Permanent link to this article: http://www.educe.co.uk/?p=250