Bank of Scotland Growth Equity
in collaboration with Oxford Innovation’s investment networks

For full press release on launch please click here

This £2m Co-Investment Programme is an arrangement with Bank of Scotland Growth Equity (BoSGE) that is designed to provide an additional source of funding exclusively for companies and investors using Oxford Innovation’s investment networks.

BoSGE has made available a £2 million co-investment pool to invest alongside members of Oxford Innovation’s investment networks. BoSGE will typically invest from a minimum of £25,000 up to a maximum of £250,000 per deal, on identical terms to our investor members.

The funding is available from 1 January 2008 for investment throughout the year in qualifying companies that are seeking funding from our investors. A qualifying company is one that has registered with one of our investment networks and secured a funding commitment from one or more of our investor members.

If you are interested in accessing funding from the Co-Investment Programme, please contact your investment network manager.

To view this information in pdf format click here


For Companies

The Co-Investment Programme is exclusively for companies that have registered with one of Oxford Innovation’s investment networks.

Qualifying companies are encouraged to apply for funding through the Co-Investment Programme.

A qualifying company is a company that has:

• Registered with one of Oxford Innovation’s investment networks and signed a Success Fee document.

• Presented at one of Oxford Innovation’s investment network meetings or whose details have been circulated to our investment network members.

• Secured a minimum funding commitment of £25,000 from a member of one of Oxford Innovation’s investment networks.


BoSGE will invest from a minimum of £25,000 up to a maximum of £250,000 as co-investment funding in any single qualifying company. However, BoSGE has discretion to provide additional funding.

As BoSGE is investing alongside members of our networks, the investment process is handled by one of the investors involved in the deal who agrees to act as the Deal Leader.

For Investor Members

The Co-Investment Programme is exclusively for investors who are registered members of one of Oxford Innovation’s investment networks.

BoSGE is able to co-invest alongside one or more of our investor members in a qualifying company that has signed a success fee document. The Co-investment process is negotiated through an investor member who has agreed to act as the Deal Leader.


• BoSGE will invest from a minimum of £25,000 up to a maximum of £250,000 alongside a Deal Leader (and other investors, where appropriate) in a qualifying company.

• BoSGE will normally co-invest in a maximum of two qualifying companies per Deal Leader during 2008.

• Investments can be completed during 2009 for deals that are formally agreed during 2008.

• BoSGE will rely on the Deal Leader’s due diligence and negotiations with the investee company.

• The Deal Leader will be the main contact for BoSGE and provide standard reporting and monitoring to BoSGE post-investment.


Role of the Investment Networks

Oxford Innovation’s investment networks link investors with selected companies with high growth potential who are seeking investment capital.

Our investment networks will present quality investment opportunities to our members and BoSGE through our regular investment meetings and special interest group meetings as well as on an individual basis.

Our investment network managers will co-ordinate the Co-Investment Programme and are available to assist investor members and BoSGE throughout the co-investment process.

Our investment networks will receive a standard success fee on completion of each co-investment.


To discuss the co-investment programme 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 811143

 

IQ Capital

  1. What is 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.

  2. Who are the partners in IQ Capital?

    The Fund is managed by NW Brown, 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, Thames Valley Investment Network, and Silverstone Investment Network.

  3. When will IQ Capital be ready to invest?

    The fund was formally launched in September 2006 and is now investing.

  4. What 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).

  5. 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.

  6. How big a Fund will IQ Capital be?

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

  7. 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'.

  8. 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.

    If you do not yet have a lead angel supporting your investment proposal you should nevertheless submit an outline of your opportunity to the IQ Capital Fund Manager or to one of the partner Business Angel Networks and, where appropriate and possible, we may be able to assist in identifying an IQ Angel.

  9. Where can I find more information about IQ Capital?

    For more information go to the Fund's website (was launched at the end of October 2006) or contact Larissa Chamberlain by email or phone (on 01223 357131).

  10. Which partner Business Angel Network should I apply to?

    Each Partner Network's website gives full details of how to submit business plans and work towards securing an introduction to the Network's business angel members, typically by presenting at an Investment Meeting.

    IQ Capital's deal flow will be drawn from our networks and other angel-backed sources, so there is no advantage in applying to any one particular partner Network. It makes no difference which of the three Business Angel Networks is approached initially because we work closely together and all are equal channels towards IQ Capital.

    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 811143