Amadeus Capital Partners, the European technology investor, today announced the close of its £10 million Amadeus and Angels Seed Fund (AASF), comprising UK Government funding (through the Enterprise Capital Fund) of £6.5 million and £3.5 million from Archangel Informal Investments and over 50 private investors from across the UK. The private investors bring to AASF a wide range of technology skills and management experience.
In practice, AASF allows Amadeus to make up to £20 million available for investment in high growth seed technology businesses in the UK, through 50/50 co-investment with the firm’s institutional funds.
Amadeus was awarded ECF funding in the first tranche of ECF awards in May this year and completed all detailed negotiations in September. The remaining £3.5 million was fully subscribed within a month, such is the enthusiasm amongst technology-aware private investors for this type of vehicle managed by a successful technology investment firm.
AASF, managed by Laurence John, CEO of the Amadeus Mobile Seed Fund, and his team, will fund up to ten UK technology companies with the potential to become the type of company to attract Series ‘A’ finance from Amadeus’ main funds, which invest in Series ‘A’ through to later stage technology businesses. Each investment will be supported with mentoring and follow on finance. AASF has already made its first investment in XMOS, a Bristol-based fabless semiconductor company.
Amadeus has backed some 60 companies across the UK, continental Europe and Israel in computer hardware and software, mobile and fixed communications and medical technologies. It was one of the first investors in CSR, which floated on the LSE in 2004 and also in Optos, which also floated on the LSE, earlier this year.
In 2001, Amadeus, perceiving a gap in the £250,000 to £1 million funding range, raised £3 million through the Amadeus Mobile Seed Fund to finance the development to Series ‘A’ stage of technologies with particularly strong potential for commercial success. The Fund’s two investments, Nujira and Enigmatec, have both gone on to raise substantial rounds from other leading venture investors, together with Amadeus’ main funds.
Commenting on the AASF Closing, Laurence John said: ‘This is the space where the disruptive technologies that effect real change for businesses and consumers are developed, yet it is one which the UK has been slow to support. We are delighted that the Government has recognised the importance to the economy of seed finance with the ECF initiative and pleased to be closing this fund with ECF support.’