Silverstone Investment Network
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Success stories – brief case studies of companies that have successfully raised funds through Silverstone Investment Network.
High growth technology companies seeking equity funding through business angel Investment Networks located in Oxfordshire, the Thames Valley and Silverstone, are set to benefit substantially from a new £25m business angel co-investment fund. The IQ Capital Fund I LP is the UK’s first Enterprise Capital Fund, and was announced by the Chancellor in his 2006 budget speech.
IQ Capital will focus on seed and early stage companies in high tech as well as more traditional sectors. The Fund has been launched by a partnership of three of the UK’s leading angel networks: OION, GEIF in Cambridge and SWAIN based in Bristol (see notes), with Fund management provided by Cambridge based NW Brown Group.
Companies that secure investment commitments from business angel members of OION, and its three sister networks, Thames Valley Investment Network, Oxford Early Investments and Silverstone Investment Network, will be automatically introduced to IQ Capital, which will then decide whether to commit further co-funding.
Dr Jon Cox, OION Investment Manager, said: “The launch of IQ Capital is excellent news for OION, and recognises the vital role that experienced business angels play in the funding of early stage technology companies. The gearing of £2 for every £1 of business angel investment provided by the Government’s investment in IQ Capital will substantially increase the equity funding potentially available to early stage technology companies, and help to fill the ’residual equity gap’.”
Max Bautin, Fund Manager of IQ Capital at NW Brown, explained: “In addition to the many years’ investment experience of the IQ Capital team, the Fund will also benefit from the very significant added value brought to investees by the expert ’IQ’ angels alongside whom the Fund will be co-investing. We are confident that the Fund’s investment strategy will be highly appealing to potential investee companies and, with the Government’s gearing, will lead to substantial returns for the Fund’s investors.”
It is expected that the final closing, when the Fund will start investing, will be reached in June 2006.
Press Release Ends
Press enquiries to: Margaret Henry, PR Manager, Oxford Innovation.
Tel: +44 (0)1865 811199 E-mail: Margaret Henry
Silverstone Innovation Centre is a joint venture between British Racing Drivers Club and the East Midlands Development Agency, managed by Oxford Innovation. The Centre is designed to house up to 40 high performance engineering start-up and growing companies and offers 30,000 sqft of space with individual units ranging from under 200 sqft to over 1,000 sqft. It is located at the Silverstone circuit, the home of British motorsport and the venue of the British Grand Prix, and is served by the A43 dual carriageway between the M1 and M40.
For further information, or to arrange a visit, contact: Dianne Wilson, Manager of Silverstone Innovation Centre on 01327 856000 or email: Dianne Wilson
Oxford Innovation provides services to innovative start-up companies, and to government bodies that promote enterprise. It is the UK’s leading operator of Innovation Centres, managing 12 Innovation Centres that provide flexible office and laboratory space to over 400 technology, knowledge-based and creative companies.
Oxford Innovation manages three highly successful investment networks that have helped over 90 companies raise £19.5 million during the last five years. They include: Oxfordshire Investment Opportunity Network (OION www.oion.co.uk), Europe’s most successful technology business angel network that links investors with entrepreneurs seeking funding from £150,000 to £2 million; Oxford Early Investments (www.oxei.co.uk), which helps very early stage companies raise finance of up to £150,000; and Thames Valley Investment Network (www.tvin.co.uk), which links entrepreneurs seeking funding of up to £1m with investors in Reading and surrounding areas.
Invest Northamptonshire is the county’s investment promotions agency and was established in 2004 by the Office of the Deputy Prime Minister and Northamptonshire County Council.
The organisation supports the growth of local investors and promotes the county as an investment destination to UK based and overseas investors. Programmes delivered by Invest Northamptonshire include Fit for Market and The Northamptonshire Ambassadors Group.
The Enterprise Capital Fund (ECF) programme is a multi-million pound scheme to boost investment in small and medium-sized businesses in the UK. £8.3m is being raised for IQ Capital from private investors, including OION members, and the Government’s investment in IQ Capital brings an additional £16.7m.
A competitive bidding round for fund managers or angel groups to run ECFs was launched by the DTI’s SBS in July 2005. 45 bids were received. In selecting which bids to support the government has been advised by the Capital for Enterprise Board, an advisory group of industry experts, chaired by David Quysner of Abingworth Capital Management. See www.sbs.gov.uk for a full press release on the programme.
Oxfordshire Investment Opportunity Network is Europe’s most successful technology business angel network that links investors with entrepreneurs seeking business development funds from £150,000 to £2 million. OION helped 13 companies raise £2.5m in the year to March 2005, and during the last five years, has helped nearly 100 companies raise £22.5m.
OION holds monthly meetings where selected companies pitch their proposals to OION’s members, which include over 130 active business angels, VCTs and venture capitalists.
OION is managed by Oxford Innovation Ltd (www.oxin.co.uk), the UK’s leading operator of innovation centre premises for start-up companies, and sponsored by HSBC Bank, Grant Thornton, Laytons, Frank B Dehn & Co, NESTA and Business Link.
The NW Brown Group, founded in Cambridge in 1974, offers a comprehensive range of bespoke financial services to private and corporate clients throughout the UK. In the unquoted sector, NW Brown is fund manager of GEIF Ventures Early Growth Fund (£5m), the £4m Iceni Seedcorn Fund LLP and the £3.6m Eastern Co-Investment Fund (COIN). GEIFV and COIN are both angel co-investment funds, which have, between them, made more than 20 investments to date. NW Brown & Company Ltd is authorised and regulated by the Financial Services Authority.
GEIF, part of the NW Brown Group, is a leading business angel network located in Cambridge, providing a matching service between high growth companies seeking funding and business angels seeking quality investment opportunities. Since its establishment in 1995, GEIF angels have provided invaluable management input and funding to nearly 100 early-stage UK-based companies.
SWAIN, launched in 2004 and based in Bristol, specialises in helping small and medium sized companies to find equity finance, and assists private investors in searching for investment opportunities in businesses with growth potential. SWAIN operates throughout the South West region and is supported by SWRDA and the South West Business Links.