business'', the bank said yesterday.

Compass Ventures will provide equity capital for companies and has capital commitment from the bank of $10 million.

"This presents a real opportunity for start-up companies that are sometimes perceived as too risky to qualify for bank loans, for growth companies that need additional capital to expand their operations, and for mature companies that with to redress their balance between debt and equity capital in order to prepare for public ownership,'' the bank said.

"By providing venture capital to the local marketplace, the Bank of Bermuda is entering into a new partnership with the business community,'' said Compass Ventures chairman and bank senior vice president Mr. Alan Richardson.

"The bank is not looking to control companies, rather, the reverse. We want to develop the entrepreneurial spirit in Bermuda which means making capital available to people with the drive and vision to build a profitable business,'' he said.

"Compass Point will be a business partner with a direct stake in the success or failure of the enterprise.'' "We are in the business of developing the offshore capital market,'' said Bank of Bermuda senior vice president, investments, Mr. Peter Mellor.

"Venture capital, which is risk capital in the purest sense of the term, is a vital step in this process,'' he said. "Compass Ventures will share the business risk with promising companies in order to accelerate the process of value creation.

"Compass Ventures is one part of the capital creating process and is typically followed by a private placement or an initial public offering on the stock market.'' Compass Venture, incorporated March 14, is managed by the Corporate Finance Group of the bank's investment division.