Pentech II raises £20m above target

20 October 2008

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Fund

Pentech Ventures has closed its latest fund, Pentech Fund II, which was launched in November 2007, at £45m.The sum raised is well above the original £25m target; no hard cap was set. The management fee was 2.5%, other financial terms have not been disclosed. Dickson Minto provided the fund with legal advice.

Investors

Approximately 25% of investors were family offices; traditional fund-of-fund institutions provided the balance. Pentech Ventures itself contributed an undisclosed sum to the fund. Many investors that also participated in Pentech Fund I returned for the second fundraising, including European Investment Fund (EIF), Scottish Widows Investment Partnership, F&C Private Equity Trust plc and Souter Investment. Among new European investors were Alliance Trust, Innotech Laminvest and Nesta.

Investments

Pentech Fund II will invest in companies with global potential in the enterprise software, telecommunications software, internet, mobile and tech media sectors based in the UK and Ireland. The fund has no preference to any of the sectors and will decide on an individual basis. On a first investment into a company, the fund is considering a minimum contribution of £250,000 and a maximum of £2m. It will invest in seed and series-A and -B rounds of funding. The fund will also follow its money in subsequent rounds.

Pentech Fund II is expecting an average of three to four investments per year. Pentech will consider co-investing with other venture capitalists as the lead or co-lead investor.

Pentech Fund II has made its first investment of $2m in September 2008 in Metaforic, a Scotland-based provider of software anti-tamper solutions.

People

Eddie Anderson is the main manager of the fund. Andrew Todd and David Thompson worked as legal advisers to the fund for Dickson Minto.

Name: Pentech Fund II

Target: £20m

Closed on: £45m

Focus: Seed, early-stage, expansion

Contact: Eddie Anderson

Address: Pentech Ventures

150 St Vincent Street

Glasgow G2 5NE

Tel: +44 141 572 7303