Provide investment of up to £500,000 for a minimum of 6 months and up to ten years, to SME’s (small and medium sized enterprises) that show growth potential. Those securing such funding are expected to produce a return to the fund concerned. The funds are managed by experienced venture capital professionals who operate out of their own premises, on a commercial basis. They make all the investment decisions, including how the investment should be structured. Approximately 50 per cent of the funds (£250,000) are sourced by the venture capital fund manager from private sector investors. The other 50% comes from the government (via the Enterprise Directorate) and the European Investment Fund (EIF) (the equity arm of the European Investment bank). Any losses to the fund’s capital base are, however, suffered by the government first.