Oxford Innovation Finance, an FCA-regulated investment firm with a strong record in early-stage equity funding, has been commissioned by the Cornwall and Isles of Scilly Good Growth Programme to deliver The Beacon Fund, a pioneering new equity investment initiative supporting ambitious early-stage businesses across the region.
Initially funded by the UK Government’s Shared Prosperity Fund, The Beacon Fund is designed to address a critical market gap for early-stage equity investment. A sustainable, long-term funding vehicle, The Beacon Fund will help nurture Cornwall’s next generation of high-growth businesses by offering flexible, targeted equity investment of between £20,000 and £200,000 per transaction.
The Fund will address two critical stall points commonly faced by early-stage companies:
- Stall point A – founders’ initial funds are exhausted before the business is mature enough to secure external viable equity investment. This requires early intervention through the injection of comparatively small amounts of funds that are used to convert potential into demonstrable market traction, paving the way for successful angel or seed rounds.
- Stall point B – businesses are at the point of progression and have investor interest but lack the essential funding required to to unlock co-investment and to complete rounds.
The Beacon Fund is specifically designed to be continuous in nature, with realised exits recycled back into the fund. This reinvestment model ensures that the capital continues to support new applicant companies year after year, strengthening the region’s entrepreneurial ecosystem.
The Fund’s long-term objective is to grow beyond proof of concept and sustain a revolving pool of capital that will continuously reinvest in local innovation, for the enduring benefit of businesses and communities across Cornwall and the Isles of Scilly.
Designed to work alongside existing investors, including the South West Investment Fund (SWIF), Cornwall Angel Network (CAN) and wider UK private investment communities, the Fund will bring co-investment deals to fruition and deliver tailored financial support at critical growth junctures. It will be coupled with expert investment readiness advice delivered through The Founders Collective, Oxford Innovation Advice’s established accelerator programme.
Chris Oliver, Investment Principal at Oxford Innovation Finance and Fund Lead said: “The Beacon Fund represents a significant step change in early stage equity investment for Cornwall & the Isles of Scilly. For some time we have been aware of this significant market need that is currently underserved by the market, and we are thrilled that Cornwall Council, through the Good Growth Programme, has embraced such an innovative and forward-thinking model in the Beacon Fund. With their support, we are ready to help shape generations of high-growth Cornish start-ups, alongside our partners, and contribute to a more resilient, dynamic and prosperous regional economy in Cornwall and the Isles of Scilly.”
Cllr Tim Dwelly, Cornwall Council’s Cabinet Member for Economic Regeneration and Investment, said: “I’m pleased to see Shared Prosperity Funding through our Good Growth Programme being used to support new ways of helping businesses grow. The Beacon Fund is a great example of how we can move beyond traditional grants and pilot more targeted investment that meets the real needs of our high-growth sectors. It’s about backing ambition, unlocking private investment, and building a stronger local economy.”
The Beacon Fund is now open for applications at www.beaconfund.co.uk.
We encourage eligible founders and early-stage businesses in Cornwall and the Isles of Scilly, who believe they may meet the investment criteria, to apply.