IT services provider H2O Networks has secured its second investment from Enterprise Ventures in less than 12 months. The company will use the undisclosed investment to continue the development of its business.

Enterprise Ventures first invested in the company late last year to finance its growth plans. This follow-on round of funding will also be used to recruit sales and support staff and fund its re-location to new premises.

Both investments were made by the Coalfields Enterprise Fund, a £10 million venture capital fund managed by Enterprise Ventures for the Department of Communities and Local Government.

H20, which was established in 2001, designs, installs and supports IT systems for a range of small businesses and corporate clients.

The company has also developed the FS Focus System, which deploys fibre optical cable through the UK’s waste water network. This cost effective and environmentally friendly method allows health, education and manufacturing organisations to set up secure IT and telecom networks without the traffic disruption associated with traditional methods.

Enterprise Ventures manages venture capital and private equity funds from its offices in Preston and Leeds. The company offers syndicated funding packages of up to £2 million to new and existing companies based in the North of England and the Midlands.