WIREDGOV

The London Technology Fund, set up by the London Development Agency (LDA) with European backing, has sold Dexela, a high-tech business specialising in low-dose x-rays which it co-owned with Albion Ventures.

The sale to PerkinElmer Inc, a US healthcare technology leader, enables the proceeds to be reinvested into future high-tech ventures in London.

This is the latest London Technology Fund success and demonstrates the value of long-term independent investment in specialist initiatives, backed by both public and European Regional Development Fund capital. The London Technology Fund has completed 22 investments in eight companies, acting as a key investor to help secure over £27 million for London-based high technology companies.

The Fund is one of seven innovative schemes set up by the LDA under the umbrella of SME Wholesale Finance Limited. Since setting up SME Wholesale Finance in 2004, the LDA has invested £21 million for loan and equity funds and the company has also secured further funding from the European Social Fund and the European Regional Development Fund.

Over 350 SMEs have received loans and 28 companies have received equity investments. The loan repayments and investment proceeds are expected to yield up to £20 million by 2015, which can be reinvested in London.

The London Development Agency has more recently set up the London Green Fund, a £100 million fund – backed by the European Regional Development Fund – to invest in London’s waste infrastructure and in energy efficiency schemes.

The management of the European Structural Funds in London transferred from the London Development Agency to the Greater London Authority on 1 July 2011.