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GEIF Ventures launches £2.5 million investment fund
4 June 2003
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New fund boosts Business Angel investing power
A new investment fund, whose primary role is to
match the investments made by Business Angels into early-stage companies,
has been launched by Cambridge based company, GEIF Ventures (part
of the NW Brown Group).
The £2.5 million fund, created with investment by the Small
Business Service, will be able to mirror investments made by Business
Angels into promising early stage businesses, up to a ceiling of
£200,000, helping bridge the ‘equity gap’ faced
by many young companies.
Although separate, the fund will operate alongside the Great Eastern
Investment Forum, one of the country’s foremost early-stage
investment networks. Early-stage companies from England that both
present to Forum members and attract investment will be considered
for mirror funding from GEIF Ventures.
“This is a major step forward for the early-stage investment
community,” says Nigel Brown, Chairman of NW Brown Group,
who adds: “In the current economic climate, Business Angels
are playing a crucially important role in supporting entrepreneurship.
However the present ‘matchmaking’ model, adopted by
most UK Business Angel networks, does not mobilise the full power
of angel investing.*
“If investing through business angel networks is to thrive
they must add more value to the investment process. Co-investing,
as demonstrated by many American business angel groups, is by far
and away the most powerful way to deliver this.”
The new funding vehicle gives SMEs an additional injection of early-stage
capital, ensuring that businesses have the cash to grow. Investors
themselves will feel a greater level of security as their risk is
shared and their investment power is increased, allowing them to
spread their capital and add management skills to a larger portfolio
of companies.
As access to the fund is achieved exclusively through the Great
Eastern Investment Forum, new investors are welcome to join and
access the GEIF dealflow, as well as to introduce investment opportunities
of their own. Companies seeking early stage capital are also encouraged
to apply for an introduction to GEIF investors and GEIF Ventures.
* American Business Angels invest between £15-25bn into early
stage companies per annum, whereas their UK counterparts provide
between £0.5 and £1bn out of which less than £50m
is sourced through business angel networks. (Source: “Benchmarking
business angels”, report by EC, 2003)
Further enquiries:
Max Bautin
GEIF Ventures Ltd
max.bautin@geifventures.co.uk
For media enquiries please contact:
Steve Greenahlgh
Profile Communications
01223 236736.
Notes to Editors:
Great Eastern Investment Forum
www.geif.co.uk
GEIF is a leading UK business angels network strategically based
in Cambridge. It is the fundamental link between early stage companies
and business angels seeking quality investment opportunities. GEIF
introductions, through regular company presentations and breakfast
meetings, provide a secure and confidential business environment.
GEIF website brings members all the latest investment opportunities
and other relevant news. Since GEIF was launched in 1995, its members
have helped over 150 early stage companies to raise in excess of
£20 million of investment and to strengthen their teams with
invaluable management skills. Membership of GEIF includes private
investors, corporate investors, venture capitalists and corporate
advisers.
Small Business Service www.sbs.gov.uk
The Small Business Service (SBS) is an agency of the Department
of Trade and Industry (DTI). It is dedicated to championing the
interests of small business, with our work extending across Government.
The SBS's purpose is to build an enterprise society in which all
small businesses thrive and achieve their potential. The SBS vision
is that, by 2005, the UK should be the best place in the world to
set up and run a business and our aims are to:
- help all small businesses realise their potential,
especially by minimising the burden of regulation;
- promote world class business support services
to enhance the performance of small businesses;
- promote enterprise across society and particularly
in under-represented and disadvantaged groups; and
- achieve the highest standards of service delivery
and provide value for money.
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