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The new fund will invest in a portfolio of six to eight companies within a 12-month period, in accordance with HMRC rules, and will target companies valued below £10m.

Managed by the Longbow executive team, comprising Edward Rudd, Edward Beckett, Julian Hickman, Ron Petersen and Robin Finlayson, the fund will aim to take advantage of low valuations in the venture capital market, as well as growth opportunities.

All investments will be reviewed and approved by a supervisory committee composed of non-executive partners with an independent chairman, Colin Harris.

Longbow is a founding partner of the Boots Centre for Innovation (BCI), based in Swansea, which works closely with early-stage companies or inventors to develop products for Alliance Boots stores.

Julian Hickman, partner at Longbow Capital, said: "The fund provides investors with access to investment prospects that emerge from the BCI, as well as other sources, which will excite investors looking into the wellbeing, healthcare and life science field.

"The innovations coming out of the BCI offer investors the opportunity in invest in tangible products at the market-ready stage and be involved in the cutting edge of innovation in the UK."

The fund closes to new investments on 1 April and is aiming to raise £10m.

A minimum investment of £10,000 is required and there is an initial charge of 5 per cent and a management fee of 2 per cent.