Amadeus raises £33m towards new Early Stage Programme

16 January, 2014 London

Technology investor Amadeus Capital Partners has raised £33.2m in the first closing of the Amadeus IV Early Stage Funds, a programme of funds that will invest in UK companies developing disruptive technologies in high-growth sectors, including ‘big data’ analytics, cloud computing and cyber security, low-power computing and the ‘internet of things’, medical technology and digital healthcare.

The Amadeus IV Early Stage Fund is an Enterprise Capital Fund (ECF) supported by the British Business Bank and is Amadeus’ second ECF. The £33.2m raised to date comes from investors including corporates, trusts, foundations and high net worth individuals. This fund is registered as an EuVECA (EU Venture Capital Fund).

Amadeus has invested in early-stage companies since 1998. The most recent exit from the Amadeus & Angels Seed Fund ECF was Stirling, Scotland-based online collaboration software company OneDrum, which was sold in 2012 at a high cash multiple to Yammer Inc.

Early stage entrepreneurs are increasingly adopting ‘lean start-up’ techniques, whereby minimal viable products are developed, tested with customers, and immediately and continuously adapted to meet market needs. This iterative process of constant innovation reduces the amount of initial funding required and increases the likelihood of rapid success. OneDrum was a textbook case of this process, and Amadeus expects to invest this new fund in similarly rapid-growth companies.

The UK currently offers one of the most dynamic business environments in Europe for innovative companies. Government has directly encouraged innovation and early stage investment through a range of initiatives, including the British Business Bank-backed ECFs, the Technology Strategy Board, Tech City, the R&D tax credit scheme and Entrepreneur Visas.

Alex van Someren, Managing Partner of Amadeus’ Early Stage funds, says: “Demand for investment for potentially disruptive technology start-ups is increasing at a time when early stage capital is very scarce. This presents a real opportunity for early stage funds such as ours. The Amadeus team has been building and backing technology companies for a long time; we see a wealth of potential today in certain sectors. Naturally, I am grateful to all our investors who have made it possible to invest in and support that potential.”

Ken Cooper, Managing Director of Venture Capital Solutions at the British Business Bank, said: “Our Venture Capital solutions, such as the Enterprise Capital Funds, are designed to help unlock funding for ambitious, innovative businesses. This new fund from an established team at Amadeus is an ideal fit for us and we are delighted to be making this investment. The Amadeus team brings a wealth of experience in building successful businesses and in making and managing early stage technology investments.” 

SOURCE:  Amadeus Capital Partners 

RELATED LINKS:  http://www.amadeuscapital.com 

The Fund Reviews team has advised investors in Amadeus funds.