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29 June 2001

Pentech Ventures – New Early Stage Technology Fund Launched

US model of support to be deployed

A new early stage technology fund, Pentech Ventures (Pentech), has been launched to invest in businesses based in the UK and Eire with significant ‘US style’ hands on support being deployed in support of invested businesses. The Fund, which will be managed by Penta Capital, currently has £12m of commitments, and is aiming to raise between £15m and £20m.

Pentech will be run by technology entrepreneur Eddie Anderson, who joins the board of Penta Capital, and David Armour, formerly a partner in corporate advisory firm AMCo.

Utilising a familiar US model, Pentech has established an Advisory Group of seasoned technology entrepreneurs, who are investing in the Fund, to support the development and growth of portfolio companies in a ‘hands on’ manner.

The Advisory Group, who have formed a Partnership, has expertise spanning a broad range of technology and of building start-up technology businesses through to either flotation or trade sale. In addition two US advisors will provide East and West Coast capabilities to support businesses seeking fast-track entry into US markets.

Technology entrepreneurs in the UK, Ian Ritchie, Nick Felisiak and Peter Denyer will join Robert Thomson and Donald ‘Smokey’ Wallace from the US as the Advisory Group.

Pentech will invest between £0.25 million and £1.0 million in early stage technology companies that have created strong intellectual property with high software content. It will focus upon investments in voice, infrastructure, telecoms, development tools, publishing and software solutions and financial analysis tools.

The institutional investors in the fund include existing Penta backers Bank of Scotland and Old Mutual. A number of prominent entrepreneurs and business angels have invested in addition to the Advisory Group.

Eddie Anderson, Pentech co-founder, said, "Early stage technology companies need finance, but hands on assistance in building their businesses is often more important. The advisory group has both expertise across a broad range of technology, and experience of building technology businesses through to flotation and trade sale."

Ian Ritchie, Pentech advisory group member, said, "Technology companies often sell out too early, usually before they have cracked the US market. We want to help them scale their businesses as fast as possible to maximise value."

Craig Armour of Penta Capital said, "We felt that a different skill set was required to tackle the early stage technology market. By having proven technology and business expertise at the heart of the investment process, we believe Pentech will have the right focus to succeed in this area"

Penta Capital Partners Limited is regulated by the FSA