A UK based global syndicate of high net worth individuals has now raised over $30m for early stage, fast growing, B2B tech business in the UK and Europe.
Conviction Investment Partners (CIP) was launched as an innovative investment scheme, which is a strategic alternative to the traditional model of Venture Capital (VC) funding.
One of its investments, iZettle, was purchased by PayPal for $2.2bn generating exceptional returns to CIP investors.
The Newcastle- and London-based syndicated is led by successful investors Andrew Jenkins and Jeremy Middleton CBE.
It offers ‘just in time’ finance to a select number of fast growing companies.
Rather than providing large blocks of expensive capital upfront, the ‘just in time’ model invests smaller amounts of money each year, subject to the company hitting the pre-agreed growth targets.
This means that founders of companies are typically diluted much less than if they were funded through a traditional VC model.
It also means that syndicate investors can take smaller initial positions and add to them when and if the investee companies continue to meet the set metrics.
The CIP syndicate invests primarily in high-growth early stage companies that employ the Cloud to build disruptive Software as a Service (SaaS) based models.
Recent investments, throughout 2018, include Oradian, a cloud-based banking platform for financial institutions in frontier markets, Zumper, a full-service lettings portal designed for the US residential market, and Akkroo, a SaaS enabled Event Lead Capture solution built for B2B organisations that regularly exhibit at trade shows and exhibitions.