The IQ Capital Fund is focused on providing investment to early stage high-tech or fast growth companies that are seeking investments of between £250,000 and £2.5m.
However, unlike other funds, it will only invest in companies when they have a business angel onboard with specific experience of the investee’s sector.
Business angels are at to be at the heart of what the fund does and IQ’s network of ‘expert’ investors contains successful entrepreneurs such as Richard Little founder of Braid Systems and Andrew Phillips who established Active Hotels.
The fund has been awarded ‘ECF’ (Enterprise Capital Fund) status and has as a result received £16.7m of funding from the Treasury – the remainder came from private investors.
IQ, which expects to make its first investment this year, is to be managed by NW Brown and Company Ltd.
It is associated with three angel networks: Oxford-based OION, GEIF in Cambridge and SWAIN in Bristol.
Ed Stacey, an IQ fund manager, said: “We are delighted to have completed the fundraising for this exciting new fund and look forward to reinforcing our successful model of investing with IQ Angels.
“We have a number of interesting prospects in the pipeline and are keen to continue investing and supporting growing companies as well as meeting new ‘IQ Angels’ looking to participate in the successful model of blending funding and business development expertise we have created.
“We are very pleased to have received the DTI corner-stone investment under the highly competitive ECF programme and look forward to working with the private investors who supported the Fund”
Other fund managers include Max Bautin and Kerry Baldwin.
© Crimson Business Ltd. 2006
