Growth capital investor launches £10m fund for early stage tech firms

A London based growth capital investor is launching a £10m specialist EIS fund, investing in early-stage businesses working with next generation technology and consumers.

VGC Partners’ fund will focus on businesses at Series A stage in consumer technology, digital media and gaming. The businesses selected will have proven products and markets plus the potential for rapid user or customer adoption and scalability.

Industry analysis for 2020, by the British Venture Capital Association (BVCA), reported a total of £25.1bn private equity and venture capital investment in the UK.

This represented a 12 per cent year-on-year increase and the third consecutive year of growth. However, the venture capital investment share of this increased by only 2 per cent year-on-year to £1.7bn. Deloitte, in their Future of Growth Capital report, identified that the UK lags other regions in growth investment.

VGC Partners manages over £100m of growth capital, and over the last 10 years has established deep networks with industry executives, corporate partners and funds across its target sectors. These networks, across North America, Europe and Asia-Pacific, have enabled its portfolio companies to grow quickly.

For all growth investments the firm takes a proactive role, as driving operational improvement post-investment is a core part of the firm’s strategy.

VGC Partners will leverage its network to introduce corporate partners who can support investee companies with technical mentorship, business-acceleration and marketing support. In addition, investee companies may access co-investment or follow-on funding from VGC Partners’ later stage funds.

Alongside its specialist EIS fund and later-stage growth fund, VGC Partners manages a successful seed (SEIS) fund series, now in its sixth vintage.

Parminder Basran, founding partner and CEO of VGC Partners said, “We identify businesses with robust and efficient operating models that support revenue growth of 100 to 400 per cent each year.

“Our aim with each business is to prepare them for a private equity or trade sale. We look for businesses with differentiated, defensible products and brands with passionate consumers or loyal commercial partners. Solid operating models and EBITDA generation are essential.”