The aim of annex 4 is to get detailed and structured information on good practices identified within INTERREG IVC projects.

Since this information

will directly feed into an on-line good practice database to be made available on the programme website, we would be grateful if you could ensure
the good quality of the information provided. In particular, this information should be well written and easily understandable for external readers.
One good practice can be described per form. There is no limit on the number of good practices that can be submitted, but a minimum of four
good practice descriptions are required over the project's lifetime. Annex 4 is submitted together with the progress reports. N.B. See Programme
Manual section 1.1 for the programme's definition of a good practice
ANNEX 4: DESCRIPTION OF GOOD PRACTICE 3

1. PROJECT INFORMATION
1.1 INDEX 0787R2
1.2 PROJECT ACRONYM DSTRCT+
1.3 PRIORITY 1: nnovation and the knowledge economy
1.4 PROGRAMME SUB-THEME nnovation, research and technology development

2. GOOD PRACTICE INFORMATION
2.1 TitIe of the practice Mercia Fund Management
2.2 Topic of the practice nnovative financial products
Please specify the precise topic of
the practice in a few words (e.g.
support to SMEs, demographic
change, e-governement, risk
management, water scarcity,
renewable energy).
2.3 Location of the practice Country UNTED KNGDOM
NUTS 1 WEST MDLANDS
NUTS 2 West Midlands
City Birmingham
2.4 Start date of the practice
(and if applicable, end date)
Start 01/07/2011 End
2.5 DetaiIed description of the practice
Please provide a detailed description of the practice itself. The description should include information on the nature of the practice, its
objective, the main stakeholders involved (including the beneficiaries) and the financial resources required for its implementation. If known,
please also indicate key success factors and conditions for potential transfer.
MFM has been established to provide venture capital finance and make investments on purely commercial terms in return for an equity stake
in the business. MFM invests in technology and innovation companies based in the West Midlands and operating within one of the following
technology sectors: Medical and Healthcare, Advanced Materials, Clean Technologies and CT & Digital Media. MFM invests at the seed stage
and, working with the investee's Founders, looks to build out the management team and attract in further third party venture capital investors,
often through syndication. MFM is an active, hands-on investor and therefore usually takes a position on the board of an investee company.
MFM has been established to provide venture capital finance and make investments on purely commercial terms in return for an equity stake
in the business.
MFM invests in technology and innovation companies based in the West Midlands and operating within one of the following technology
sectors: Medical and Healthcare, Advanced Materials, Clean Technologies and CT & Digital Media. MFM is based at Birmingham Science
Park Aston and has a strong relationship with a number of significant partners (ncluding the Universities of Birmingham, Warwick, Aston,
Coventry, Staffordshire, Wolverhampton, Birmingham City and Keele, University of Warwick Science Park, MidTech NHS nnovation hub, Pera
nnovation Ltd, Complete Resourcing Ltd and Forward Group plc). The Universities of Birmingham and Warwick invested in Mercia Fund 1 and
they, together with a further six universities, invested in Mercia Fund 2. This relationship not only gives MFM early access to investment
opportunities but is a source of technological expertise for due diligence, technology evaluation and development, and grant funding.
2.6 Evidence of success
Please provide a detailed description of the practice itself. The description should include information on the nature of the practice, its
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objective, the main stakeholders involved (including the beneficiaries) and the financial resources required for its implementation. If known,
please also indicate key success factors and conditions for potential transfer.
n common with other venture capital providers, MFM0 makes equity investments on the basis of anticipated strong capital growth and high
levels of return. Typically, Mercia Fund Management would expect to receive a 5 to 10 fold increase on its overall investment at exit. n most
instances, Mercia Fund Management will secure its returns through a strategic trade sale of the investee to a larger industrial concern,
although an exit via flotation of the business on a recognized stock exchange such as the Alternative nvestment Market (AM) is not ruled out.
2.7 Contact detaiIs to obtain further information on the practice
Name Mark Payton
Organisation Mercia Fund Management Ltd
E-mail markp@merciafund.co.uk
Website www.merciafund.co.uk
2.8 Annex compIeted on
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