Edinburgh-based venture capital firm Par Equity has announced the launch of its £100 million venture fund to bridge the gap between VC funding in the South of England and Scotland/Northern England.

Par Equity said that despite initiatives designed to create growth across the UK, the North of the UK remains significantly underserved by VC investment.

Greater London continues to make up about 70% of total VC investment in the UK, and 80% of VC investment is concentrated within the “Golden Triangle” of Oxford, London and Cambridge.

“However, the North of the UK is a one trillion-dollar economy, equivalent to the 8th largest country in Europe, and the 20th largest country in the world,” said Par Equity.

“With a first close of £67 million, Par Equity continues to raise capital to reach the full £100 million target fund to boost innovative technology companies with high-growth potential in Scotland and the North of the UK, and shift the mindset of funding opportunities in the UK.

“Backed by the Scottish National Investment Bank and British Business Investments, with additional support from the Strathclyde Pension Fund, the fund will be managed from Par Equity’s Edinburgh office and will lead or support Series A funding rounds of £5m to £20m.”