BUSINESSMAN Sir Peter Vardy last night dismissed reports that a £50m venture capital fund he set up last year is being wound up.

Instead, the Vardy Venture Capital (VVC) fund is changing its focus to help promote education and niche businesses in the North-East.

The fund was set up a year ago to invest in businesses which needed between £500,000 and £2m to reach the next step in their growth.

However, contrary to reports that the fund is being wound up, the Sunderland-based former motoring magnate told The Northern Echo he had since found there was a greater need to provide mentoring and advice to emerging businesses rather than for capital funding.

Although Sir Peter sponsors schools with a business and enterprise status in Gateshead and Middlesbrough, niche businesses will still receive funding to help them progress.

Last night, Sir Peter said: "There are lots of sources of funding in the region and we have found it not to be the case that businesses need £500,000 to £2m.

"We have, or are investing in, a small number of niche businesses, but we will divert more of our funds to building new schools, where we have the experience and track record to make a difference in the region and can stimulate young minds now."