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Press releases — 24 March 2006

IQ Capital becomes UK’s First £25 million Enterprise Capital Fund

Government to provide £16.7m of backing for Business Angel Investment.

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 Network 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

NOTES FOR EDITORS

Press enquiries to: Margaret Henry, OION PR Manager.
Tel: +44 (0)1865 811199  E-mail: Margaret Henry

  1. Enterprise Capital Funds Programme

    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.

  2. Oxford Investment Opportunities Network (OION) www.oion.co.uk

    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 £2m. 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, Grant Thornton, Laytons, Frank B Dehn & Co, NESTA and Business Link.

    Thames Valley Investment Network (www.tvin.co.uk), Oxford Early Investments (www.oxei.co.uk) and Silverstone Investment Network (www.silverstoneinvest.co.uk) are associated investment networks operating in Reading and Northamptonshire.

  3. NW Brown Group Ltd www.nwbrown.co.uk

    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.

  4. Great Eastern Investment Forum (GEIF) www.geif.co.uk

    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.

  5. The South West Angel And Investor Network (SWAIN) www.swain.org.uk

    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.