TIDMSURE
RNS Number : 3470D
Sure Ventures PLC
02 March 2022
Sure Ventures plc ('Sure Ventures' or 'the Company')
Investment in Sure Valley Ventures UK Software Technology
Fund
Alongside the British Business Bank
Sure Ventures plc, a London listed venture capital fund which
invests in early stage software companies in the rapidly growing
technology areas of Augmented Reality ('AR'), Virtual Reality
('VR'), Internet of Things ('IoT') and Artificial Intelligence
(AI), is pleased to announce that it has agreed to invest,
alongside the British Business Bank ("BBB"), in a new venture
capital fund, the Sure Valley Ventures UK Software Technology Fund
(the "New SVV Fund").
Highlights
-- The principal investor in the New SVV Fund is the British
Business Bank, an investment arm of the UK Government. The first
close of this fund will amount to GBP85 million, with the BBB
investing up to GBP50 million and other investors ("Private
Investors"), including Sure Ventures PLC, investing up to GBP35
million over the 10-year life of the fund.
-- The New SVV Fund will invest in a range of private UK
software companies with a focus on companies in the Immersive
Technology and Metaverse sectors, including Augmented and Virtual
Reality, Artificial Intelligence, the Internet of Things and
Security.
-- Sure Ventures PLC, will initially be investing circa
GBP90,000, in the New SVV Fund on first close in order to fund the
New SVV Fund's first investment which has already been identified.
It expects to invest up to GBP5 million in total over the life of
the New SVV Fund which would equate to a circa 5.9% interest.
-- The New SVV Fund will be managed by the same Sure Valley
Ventures fund ("SVV") team which, to date, has been highly
successful in achieving a number of cash realisations from, and
upward revaluations of, companies in the SVV portfolio.
-- The profit share arrangements within the New SVV Fund are
designed to encourage the involvement of Private Investors
alongside the BBB, meaning that Sure Ventures PLC and the other
Private Investors would expect to receive a significantly enhanced
profit share of the total return generated by the fund compared to
industry standard.
-- This investment will enable Sure Ventures PLC shareholders to
gain exposure to exciting, fast growing venture capital investments
through a listed company structure with the expectation of an
enhanced return which would otherwise be difficult for such
investors to achieve.
-- The Company has several sources available to fund this
investment over the coming years. These would include a combination
of potential realisations from SVV Fund 1, an Equity Subscription
Agreement and Loan Agreement, funds from future subscriptions and
receipts generated from any sales of listed investments.
Comment from Gareth Burchell
" Given the market conditions, raising GBP35m privately and
attracting investment from an organisation such as the British
Business Bank is testament to the success and talent of the Sure
Valley Ventures team.
The Board recognise this is a very attractive investment
opportunity for shareholders in Sure Ventures given that the New
SVV Fund is a larger size than SVV Fund 1 which will allow for a
more diverse investment portfolio and the structure of the new fund
provides for enhanced returns to investors, when compared to the
more traditional structure of SVV Fund 1. The existing team from
SVV will continue to manage the new fund having demonstrated a
proven track record from the returns to date achieved from managing
SVV Fund 1.
Fund 2 has been created as part of the BBB's Enterprise Capital
Funds programme that only accepts a very limited number of fund
managers on to the programme, so this is a clear validation of the
quality of the investment team at SVV"
The British Business Bank (BBB) and Enterprise Capital Funds
The BBB is the largest domestic backer of venture capital funds
in the UK. Established in 2006, the Enterprise Capital Funds
("ECF") programme helps those looking to operate in the UK market
to raise venture capital funds specifically targeting early-stage
small businesses believed to have long-term growth potential.
The ECF programme combines private and public money to make
equity investments into high growth businesses. The aim is to
increase the supply of equity to UK growth companies and to lower
the barriers to entry for fund managers looking to operate in the
venture capital market. The BBB's ECF programme only accepts a very
limited number of fund managers on to its programme i.e. some 24
fund management groups over the last 16 years since the programme
started in 2006.
The BBB specifically invests alongside venture capital funds on
terms which improve the outcome for the co-investors. The reason
for this clear advantage is simply to encourage venture capital
funds to operate in a part of the market where smaller businesses
may not be able to access the growth capital they need.
Other well-known fund managers that have been involved with the
BBB ECF programme include Dawn Capital, Notion Capital, Amadeus
Capital Partners, IQ Capital, and Episode 1.
Details of the New SVV Fund
The New SVV Fund is expected to complete its first close with
total investment commitments of GBP85 million, of which GBP50
million will be invested by the BBB with the balance of GBP35
million coming from Private Investors, including financial
institutions and family offices. The total investment may, however,
increase to GBP95 million, with the Private Investors investing up
to GBP45 million. Sure Ventures PLC's investment allocation of GBP5
million will, however, not be required to increase in these
circumstances.
Sure Ventures PLC's investment commitment over the life of the
New SVV Fund will be drawn down in tranches as and when funds are
required for investment over the 10 year life of the fund. However,
as is similar to the existing SVV fund, any realisations of its
investments will be distributed to investors at the time of
realisation (as is common with funds of this nature) therefore the
return on this investment is expected to be received throughout the
life of the fund.
The New SVV Fund will invest in a range of private UK software
companies with a focus on companies in the Immersive Technology and
Metaverse sectors, including Augmented and Virtual Reality,
Artificial Intelligence, the Internet of Things and Security and is
aligned with Sure Ventures PLC's investment strategy.
The Sure Valley Ventures UK Software Technology Fund has been
created under the partnership, Sure Valley Ventures Enterprise
Capital LP ("Partnership"). The Partnership has been constituted
under an agreement between Sure Valley General Partner Limited
("GP") and Sure Valley Ventures Founder LLP ("FP") to carry on the
business of an investor and, in particular, of identifying,
negotiating, making, monitoring and realising investments and to
carry out all functions and acts in connection therewith.
Shard Capital AIFM LLP has been selected by the GP to act as the
Alternative Investment Fund Manager (AIFM) of the Partnership and
has been appointed by the Partnership to (i) admit Investors to the
Partnership and thereafter to operate the Partnership and manage
its investments, and (ii) act as Alternative Investment Fund
Manager (as defined in the AIFMD) to the Partnership.
The role of Sure Valley Ventures Limited shall include sourcing
investors and deal flow for the Partnership, advising the Manager
on making investments, and arranging deals in investments for the
Partnership. If Sure Valley Ventures Limited or another Associate
of the General Partner becomes an Authorised Person permitted under
FSMA to act as Manager of the Partnership, it is intended that Sure
Valley Ventures Limited or its Associate (as applicable) shall be
appointed as AIFM of the Partnership.
This announcement contains inside information for the purposes
of the UK Market Abuse Regulation and the Directors of the Company
are responsible for the release of this announcement.
Enquiries:
Sure Ventures PLC
Gareth Burchell
Director
0207 186 9951
Corporate Broker
Damon heath
Shard Capital
0207 186 9952
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END
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