Edge Performance VCT has taken a stake in Chapman Entertainment.
The company - which specialises in media and entertainment funds - has invested just over £520,000 into the company, which is headed up by creative director Keith Chapman and finance director Andrew Haydon.
In July, Chapman was forced to make sweeping changes at its London office - which saw co-founder Greg Lynn leave the firm, as well as a significant number of redundancies across all of its teams.
"The Edge philosophy is to invest in strong executive talent and few are as strong in the children's licensing business as Keith Chapman, who has demonstrated his ability time and again to captivate children all over the world," said Edge investment manager, Adrian Baillie.
Edge Group founder David Glick added: "Keith is one of the great creative forces in children's entertainment and we are pleased to be working with him."
Chapman is currently enjoying success with new properties Little Charley Bear and Raa Raa the Noisy Lion.