FAQ

A POC Fund investment can be used to address any project that moves an idea for a science or technology business towards commercialisation. Technology development in terms of feasibility studies, prototyping and patent exemplification can be supported. The POC Fund can also address market questions - does the project address real, perceived, future of developing market needs?

The POC Fund is not a "lender of last resort" for high-risk, low-return propositions. Similarly, the POC Fund cannot be used to re-finance existing activities, or to simply finance normal operational costs.

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Applicants must either be Small Medium Enterprises (SME), individuals or academics intending to form an SME business if the POC project is successful. There is no need for a company to exist for a project to receive POC Fund investment.

Existing, trading companies can apply, but the application must be based around a major product diversification with the potential for a step change in the business, preferably via spin-off.

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Up to £60,000 for a SME based project with a maximum of £90,000 for university pre-start projects.

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The North East POC Fund takes the form of a convertible loan and is not a grant.

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The POC Fund is limited to applicants from ERDF Objective 2 areas in the North East of England. Check your postcode here.

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Any science, technology or knowledge-based proposition with strong commercial potential is of interest to the POC Fund. There are some restricted sectors that the POC Fund cannot support. Most of these are not in technology sectors, but some are.

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The POC Fund cannot invest in the following:

• Dealing in land, commodities, futures, instruments or the instruments of any holding company that are traded on a recognised stock exchange or market for dealing in securities
• Dealing in wholesale trade or retailing
• Shipbuilding
• Former European Coal and Steel Community sectors
• Motor Vehicle Manufacture or 1st Tier suppliers
• Agriculture or Annex I of the Treaty businesses
• Synthetic Fibre Production
• Railway, Road Haulage, Maritime and Aviation Transport Companies
• Banking, insurance, money lending, debt factoring, hire purchase financing and other financial activities
• Leasing or letting assets on hire
• Providing legal or accountancy services
• Operating or managing hotel or nursing or residential care homes
• Exporting

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If an investment proceeds to either a cash generating business or secures further venture investment the POC Fund may choose to convert the loan to an equity holding. The stake taken by the POC Fund will not affect the control or direction of the business. Alternatively, the POC Fund will agree a repayment schedule with the investee. Flexibility is offered as to the period and size of repayments.

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For a small business without strong cash flow, or with long product development timescales before generating sales, equity finance has the big advantage over debt finance in that it doesn’t take any cash out of the business to service the debt. It can strengthen the company balance sheet and add credibility when seeking further investment. The stake taken by the POC Fund will not affect the control or direction of the business.

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Investments in projects that do not proceed to either cash generating companies or move on for further venture investment will be written-off to avoid unserviceable debt on applying SMEs or entrepreneur/academic institutions.

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The POC Fund makes no claims to intellectual property ownership, either existing or any intellectual property generated by the POC Fund investment. The Fund expects intellectual property rights owned by the applicants to be made over to any potential business in which the Fund may invest.

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No, all applications are treated as fully confidential, and we have blanket confidentiality agreement in place with the Sponsors to protect the process.

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