Our investment policy restricts us to investing in companies:
- that are SMEs
- that are unquoted companies - i.e., that are not quoted on a stock exchange such as AIM or the Main Market of the London Stock Exchange
- that have their headquarters and their principal place of business in Greater London
- that are technology-based businesses
- that do not undertake business activities in certain restricted sectors
Size of investment
- The London Technology Fund will invest alongside other investors, including high net worth individuals ('business angels'), corporate venture funds, early stage venture capital funds or proof of concept/seed funds such as the University Challenge Funds
- The London Technology Fund can invest in a series of tranches alongside other investors. It invests from £50,000 to over £1m in individual investment rounds, resulting in investment rounds from LTF and co-investors ranging from £100,000 to over £10m.
Stage of investment
We invest in businesses at the earliest stages of development. However, in all cases we look for businesses that are able to demonstrate the potential for rapid sustainable growth.
What are we looking for?
- SMEs based in London
- Technology industry sectors
- Earliest stages of development
- Financial requirements consistent with the London Technology Fund's ability to invest
- Strong, experienced management teams that are personally committed to the company, or a willingness to build such a team
- Good potential for growth in sales, profits and shareholder value
- Clear customer need for the products/services offered
- Convincing strategy for marketing, selling and delivering products in the face of competition
- Exit possibilities for the London Technology Fund in 5-7 years' time
- Effective financial systems and controls in place, or a willingness to install such systems and controls
- Funding available from private investors to match our funding, or a willingness to attract such funding
Please remember that venture capital investment is a highly selective process. It is also highly subjective, with a key part of the process related to assessing the future (see Primary Investment Objective) - so be prepared to hear subjective reasons if we, or another investor, decline to proceed with your proposal.
For guidance on venture capital generally, you can also visit the British Venture Capital Association (BVCA) website and refer to their publication, A Guide to Venture Capital.
If you don't already have it, you can download Acrobat Reader which enables you to view PDF files.
If you are in any doubt about whether your business meets the London Technology Fund's investment criteria, please contact us. We are happy to work with your Technology Transfer Office or other advisers to help you prepare your proposal.
Please be sure to read this important legal information.