The Co Investment Programme - Expected start Autumn 2011

. Regional Growth Fund administered by the Dept for Business, Innovation & Skills (BIS)
. Bid led by Capital for Enterprise (CfE), government owned, administered by BIS
. CfEL is the largest single investor in UK early-stage venture capital and manages investments of more than £550m in around 40 venture funds
Credible bid partners alongside OION Ltd: Braveheart Investment Group plc, Hotspur Capital Partners Ltd, Octopus Investments Ltd, , Venrex Investment Management LLP
. Proposed £50m allocated over 3 years, expended over 10 with returns re-invested
£1 government funds matched to £2+ angel funds


Bank of Scotland Growth Equity in collaboration with Oxford Innovation’s investment networks [Fully invested]

This £2m Co-Investment Programme was available for companies seeking funding through the Network starting January 2008 and closed January 2009. We are delighted to confirm that under the Co-Investment Programme 13 companies have successfully raised £4.2m from OION business angels and the BoSGE which allowed them to leverage a further £4.2m investment from non OION investors.

 


IQ Capital

IQ Capital Fund 1 LP is a £25m fund focused on seed and early stage companies in high technology sectors, and on fast growing companies in more traditional sectors. Its aim is to address the ‘equity gap’ facing early stage, high growth companies.

One third of the fund is raised from private investors, and two thirds are provided by the government under the Enterprise Capital Fund programme of the 2006 Budget.

The investment philosophy of the fund is based on the principle that active and experienced angel investors provide a highly significant contribution to early stage companies and entrepreneurs. The fund will therefore only invest when at least one such angel is also investing in the same round. The Fund Manager and Partner Business Angel Networks can assist with finding such an investor for prospective investees who have not yet secured one.

Who are the partners in IQ Capital?

The Fund is managed by IQ Capital Partners, and three partner business angel networks: OION in Oxford, GEIF in Cambridge and SWAIN in Bristol.

OION’s three associated partner Networks are also partners in IQ Capital: Oxford Early Investments, and Thames Valley Investment Network

hat sorts of companies will IQ Capital invest in, and is there an investment strategy?

IQ Capital will focus on investing in early stage high-tech companies with at least near-term prospects for generating revenue, although up to 30% of the Fund may be invested in non-tech or development capital opportunities. The Fund will expect to lead or co-lead on all its investment transactions, but will avoid highly capital intensive investments (which cause undesirable dilution).

What size of investments will IQ Capital make?

IQ Capital expects initial investments to be in £250k-£600k range (£1.5m maximum in exceptional cases), and expects to make some 25 investments of this size. The balance of the Fund will be reserved for follow-on investments of up to £2.5m per company.

How big a Fund will IQ Capital be?

IQ Capital has closed with £25m of investment from private investors and Government.

Can I submit business plans directly to the IQ Capital team?

Yes, but it is expected that many of the investment proposals to IQ Capital investments will be introduced by the partner Business Angel Networks. Any potential investment must first be committed to by a co-investing 'IQ Angel'.

How does my company qualify for consideration by IQ Capital?

IQ Capital is an expert angel co-investment fund, and will only invest when at least one angel with the proven expertise in the investee’s sector – who we dubbed 'IQ Angels' – is co-investing more than £25,000 and is prepared to take an active involvement in the investee company post investment. Most IQ Angels are high profile and successful entrepreneurs themselves, with successful business and investment track-record, and many are members of the Fund's partner Networks. The existence of an IQ Angel prepared to invest unlocks access to the Fund but does not automatically cause the Fund to invest.

There are no geographical restrictions on where companies can be based for IQ Capital to invest. To discuss IQ Capital further, or to submit a business plan for review by OION or one of its associated Networks, please contact Eileen Modral. E-mail: Eileen Modral in the first instant or tel: 01865 261499