Angels Den appoints equity fund manager
Pre-X Capital Management, a UKbased investment manager for small companies, has formed a joint venture with one of Europe’s largest angel networks to start raising a fund to tap into the growing importance of entrepreneurial investors backing nascent companies.
Angel investors are regarded as an increasingly important source of start-up funding for companies after a number of venture capital firms, including Apax Partners and 3i, retreated in the past decade. The Best of Angels Den fund will aim to raise £3m (€3.4m) in a UK tax-efficient fund which will be managed by Pre-X. The target companies will be selected from the estimated 5,000 that apply for funding through Angels Den.
Angels Den, an investment club bringing wealthy investors and entrepreneurs together, was founded in 2007 by Bill Morrow, a former Kleinwort Benson investment banker, and Lois Cook, business manager and sister of music DJ Norman Cook, aka Fat Boy Slim.
The wealthy investors, called angels, typically decide what deals to back, but by raising a fund Pre-X said it would enable Best of Angels Den fund investors to have the same exposure to companies without devoting large amounts of time and money.
John Blowers, managing director at Pre-X and previous head of AngelBourse between 2002 and 2005, will manage the fund alongside investment director Tom Kristensen.
It is structured as an Enterprise Investment Scheme (EIS). Blowers said: “We are looking
to make money grow rather than just being a protected fund with a tax break attached.
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