Fifth Generation Technologies India Pvt Ltd (5G), a Chennai-based software product company, has raised $3.31 million (£2 million) from One North East, a regional development and funding agency in north east England. The investment marks the entry of 5G in the European market through its wholly owned subsidiary 5G Technologies Europe Ltd.
5G is engaged in developing business intelligence platforms, analytic applications and performance management products, and will set up its centre in Sunderland Software City, the technology hub in north east England. 5G has now joined the league of 10 other companies such as Tech Mahindra Ltd, Nicholas Piramal and Sunfest Energy Ltd, which have received venture funding from One North East and set up their centres in Sunderland.
One North East offers funding for greenfield and expansion purposes to domestic as well as overseas firms to start their operation in Sunderland. It invests in sectors including life sciences & healthcare, pharmaceuticals, IT & digital animation, software, new & renewable energy, chemicals and process industry, and atomotive.
For small companies having below 49 employees, One North East invests upto 35% of company's capital expenditure, while the investments for mid-sized and large companies are 25% and 15% respectively. It generally investments with a ticket size of around $3.31 million (£2 million), but it can go up to $16.57 – $33.14 million (£10-$20 million) for certain businesses, which are highly innovative in nature.
Speaking to VCCircle about the company’s initiative and funding strategy, Ben Fisher, Investment Advisor at One North East said that the primary focus behind investment in companies is to bring them in north east region of England for the economic development of the region. He added that they are focused on India and other territories as well such as China, Sanghai, Japan, Tokyo, Seol, Norway, Sweden, and Brazil. “We are looking for a strong geographical footprint over the next few years,” said Fisher.
Apart from investment, One North East also assists companies in finding right market for their products and services. The other Indian companies raised funding from One North East include Cramlington Precision Forge, Nisai, AEI Cables Ltd, Respondez, Tech Mahindra Ltd, Nicholas Piramal, Sunfest Energy Ltd and Shasun Pharma Solutions Ltd.