HG Tech Fund Targets Investment at UK InfoTech Companies
Highgate Associates and Enterprise Corporate Finance are seeking to invest in the best of the UK’s start up high tech businesses over the next three to six months. Highgate is looking for six to eight of the UK’s most innovative IT sector early stage businesses in which to invest monies in the HG Tech Enterprise Investment Scheme (EIS) Fund.
The key to the success of these businesses is early investment combined with business support and expertise. Many innovative businesses flounder not because the idea isn’t innovative but because the owners have limited or no business experience. The EIS Fund concept was established by the government to do just this by encouraging wealthy investors to support the growth of UK business through attractive tax incentives.
Andrew Muir, HG Tech Fund manager, said “This is exactly the type of business that we are looking to invest in. UK high tech start up businesses are finding it difficult to get funding elsewhere, banks aren’t lending, VC [venture capitalist] funds are looking for more established businesses and want to invest much bigger sums often asking for too much equity in return. The HG Tech Fund is ideally placed to help the emerging innovative software businesses that will be critical for the successful UK economy of the future.”
Not only will the HG Tech Fund provide financial investment but will also invest the time and expertise of the fund management team. All HG Tech Fund managers are industry veterans who have built, grown and sold high tech businesses globally for profit. Muir added: “Each business that we invest into will undergo intensive due diligence and only when my team are satisfied that the idea is innovative and the business plan is sound, will we invest. Part of this process will be to identify where we can help the business to achieve its goals and we will put the people and processes in place to make that happen.”
The HG Tech Fund is an EIS accredited fund that is open to sophisticated investors with £10,000 or more to invest in a portfolio of early stage high technology companies and closes on 31 July 2010. This is a medium- to long-term investment opportunity with a three to seven year exit strategy.