A significant new funding initiative designed to power the next generation of ambitious businesses in Cornwall and the Isles of Scilly has officially launched. The Beacon Fund is now open for applications, aiming to address a critical market gap for early-stage equity investment in the region.
Addressing a Critical Funding Gap
Investment firm Oxford Innovation Finance has been appointed to manage the fund, which is initially backed by the government’s Shared Prosperity Fund via the Cornwall and Isles of Scilly Good Growth Programme. The fund will provide targeted equity investments ranging from £20,000 to £200,000 to promising local start-ups.
This is not a one-off grant scheme but a long-term, continuous funding vehicle. A key innovative feature is its reinvestment model, where returns from successful company exits are recycled directly back into the fund. This ensures capital continues to flow to new applicant companies, creating a self-sustaining cycle of investment that aims to permanently strengthen the region's entrepreneurial ecosystem.
Expert Support and Collaborative Growth
The Beacon Fund will not operate in isolation. It is designed to work alongside existing investors across the Duchy, including the South West Investment Fund (SWIF), the Cornwall Angel Network (CAN), and wider UK private investment communities.
Beyond capital, successful applicants will receive crucial expert guidance. Funding will be coupled with investment readiness advice delivered through The Founders Collective, the established accelerator programme run by Oxford Innovation Advice. This holistic approach aims to maximise the chances of success for the region's most promising ventures.
A 'Significant Step Change' for the Cornish Economy
Chris Oliver, Investment Principal at Oxford Innovation Finance and the fund lead, described the Beacon Fund as representing "a significant step change" in early-stage equity investment for the area.
He stated, "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." He added that with this support, the fund is ready to "help shape generations of high-growth Cornish start-ups... and contribute to a more resilient, dynamic and prosperous regional economy."
Cllr Tim Dwelly, Cornwall Council’s cabinet member for economic regeneration and investment, emphasised the strategic shift. He said, "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 long-term vision for the Beacon Fund is to grow beyond the proof-of-concept stage and sustain a revolving pool of capital that will continuously reinvest in local innovation for years to come.
