LONDON — Scottish Enterprise, Scotland's main development agency, has set up an venture capital fund called Scottish Venture Fund with £20 million (about $40 million). The SVF is intended to provide funding support for Scottish deals in the £2 million (about $4 million) to £5 million (about $10 million) range, Scottish Enterprise said.

The fund is intended to provide the next level of funding up from the Scottish Co-Investment Fund. It has been set to be administered by Scottish Enterprise. It will seek to invest amounts of between £500,000 and £2 million in deals in Scotland of between £2 million and £10 million. Initial funding will be £20 million (about $40 million).

Scottish Enterprise did not say from where the $40 million had come.

The SVF uses a co-investment approach, investing alongside private sector investors on a matched funding basis.

For early stage businesses, the Scottish Seed Fund will provide investments from £20,000 to £100,000. The Scottish Co-investment Fund provides between £50,000 and £500,000 in company finance deals of up to £2 million, in partnership with the private sector on a matched funding basis.

"I am delighted that the fund is now up and running. Braveheart will be working closely with the Scottish Executive and Scottish Enterprise to make a success of the new fund," said Geoffrey Thomson chief executive of Braveheart Investment Group plc, a Scotland based venture capital company in a statement issued by Scottish Enterprise.