Centauri Therapeutics, a developer of anti-bacterial drugs, is building its research and development labs in Kent after getting a £6.3m cash injection from an unusual set of investors.

The company moved to Discovery Park, at Sandwich, in September after chief executive Mike Westby spent three years working from an office in London searching for backers to turn his virtual company into a reality.

Now it is one of five businesses to benefit so far from a new pot of taxpayers’ cash being spent by experts in the biotech field.

The Discovery Park Technology Investment Fund is a £5m kitty set aside from Kent County Council’s Expansion East Kent programme, a £35m interest-free loan scheme which used money from the government’s regional growth fund to help businesses grow and increase employment.

“This is the first truly private venture capital fund with a public sector investor..." - Jerry Biggs, NCL

Unlike its lending programme, this new fund sees council money being used to make equity investments in growing scientific businesses under the advice of venture capitalists NCL, formerly known as Narec.

The company, which has offices in London and Discovery Park, specialises in getting biotech companies to go from the idea stage to making money.

“This is absolutely ground breaking,” said NCL chief executive Jerry Biggs. “This is the first truly private venture capital fund with a public sector investor.

“There are hardly any investors in this early stage. There is a real lack of equity for these young companies and we have set this up to break that mould.

“We are creating a structure which provides a venture capital vehicle through Kent County Council’s regional growth fund money.”

While Kent County Council insists it still has the final say on whether it invests or not, NCL has so far spent £2.2m of the fund, attracting £6.8m from other investors.

The project has worked for Centauri, which secured a £5.3m joint venture with investors Horizon two weeks after NCL pledged £1m to the business.

Flute Office, a firm which turns waste into furniture and other products, now counts M&S, the NHS and Imperial College London amongst its blue chip client list after securing £1.1m from the fund last month to open a new manufacturing plant at Discovery Park.

“In the UK there is definitely a gap in private investment in new technologies..." - Mike Westby, Centauri Therapeutics

“The feedback we had from businesses was that they wanted equity rather than loans,” said Jacqui Ward, regional growth fund manager at Kent County Council.

“Narec bring investors to the table and advises KCC where to invest the money. They know the market and know investors. They are experts who want to grow the companies over three to five years.

“This is about growth and return on investment so that we can reinvest that money in other companies in Kent.”

Mike Westby, chief executive at Centauri Therapeutics, said: “In the UK there is definitely a gap in private investment in new technologies.

“The challenge is always to develop a technology quickly so you can patent an idea and expand and grow your business. Not having access to funding at best slows you down and at worst means you have to stop.”

The scheme is also helping to put Discovery Park on the map with investors around the world.

Mr Westby said: “The bottom line is our investors would not see the advantage of being based in Sandwich when they look on the map. Having regional investment early gives them confidence. It helps build the case for why Discovery Park is such a great place to set up for business.”