N4 Ventures, headed by former banker Gordon Merrylees, has launched its maiden venture capital fund after gaining regulatory approval from the Financial Conduct Authority (FCA).

With a targeted fund size of £3-5 million, the Scotland-headquartered firm aims to invest between £100,000 and £750,000 in up to 20 EIS / SEIS qualifying companies.

N4 Ventures already has arrangements with organisations including universities and accelerators across the UK and will work with the investability rating agency Capital Pilot to assess applicants.

The sector agnostic fund will be looking for stand-out businesses with a focus on supporting under-represented female entrepreneurs and those which operate within sectors associated with net zero, saas, healthtech, life sciences, cyber, spacetech and fintech.

Gordon Merrylees, former managing director of entrepreneurship for NatWest, Royal Bank of Scotland (RBS) and Ulster Bank, said: “Scotland has a terrific record of supporting ambitious startups, from leading university spinouts to the existing support ecosystem for early-stage businesses.

“We’re looking forward to playing our part in backing some of the UK’s most extraordinary entrepreneurs who are busy solving a myriad of complex issues businesses are faced with in today’s society.”