How long has Avonmore been in operation?

Avonmore Developments was started in 1999. Although this was at the top of the dotcom boom, we have always focussed on companies with good basic business fundamentals and strong management teams.

What stage in a company's growth does Avonmore prefer to invest in?

Avonmore Developments is one of a few specialized operators in the seed/early stage equity financing of companies in the UK. As such, we have built up a considerable expertise in this area of the market that is too small for many private equity firms.

What is Avonmore’s industry focus?

Avonmore does not have any particular industry specialisation although the majority of our investments concentrate on Business-to-Business rather than Business-to-Consumer products or services. Our investments include advanced engineering, telecommunications, property, logistics, IT outsourcing, biotech and software businesses, but we do not limit ourselves to these areas of the market and will look at investment opportunities based on their merits.

What is Avonmore’s geographic focus?

All investments to date have been within the UK. However, we are prepared to invest in continental Europe and the USA if an appropriate local lead-investor is already in place.

What is Avonmore's business model?

Avonmore acts both as an investment manager for investments by its founding members and as a source of potential deal flow for them. Avonmore places a high priority on adding value to the companies that it manages and prefers an active rather than passive investment role. This may be by either taking a board seat or by regularly attending management meetings. Synergies between investee companies are exploited wherever practical.

How much will Avonmore invest per deal?

In a first round funding, Avonmore will invest a minimum of £25,000 up to maximum of £250,000. It will also invest as part of a syndicate for a larger amount where suitable, either as lead investor or co-investor. Avonmore also has the ability to follow on its investment in future rounds of financing.

What are Avonmore’s Fees?

Avonmore does not charge an investment arrangement fee. In line with industry practice, however, it does pass on its legal costs for each investment (usually a minimal capped fee) and reserve the right to charge a small yearly investment monitoring fee.

How many deals does Avonmore do per year?

Avonmore’s deal making is partly dependent on the capital made available to it from its founding investors. Over the last couple of years, Avonmore has generally made two or three new investments per year as well as further financing of companies in the Avonmore portfolio.

What investments has Avonmore made?

We have made a number of seed and early stage investments. For examples of some of the publicly announced investments, please visit the Portfolio section of this website.

What is the track record of Avonmore?

As a privately funded concern, Avonmore is not required to publish its investment returns. However, since the start of operations in 1999, Avonmore has only had one investment failure and has had considerable successes with several others.

What are the required returns on investment?

Avonmore is not IRR and exit driven. Our objective is to build value over the medium term and to align our interests with management.

Over what time period does Avonmore expect a return on its investment?

As Avonmore is privately owned, we are not tied to a fund wind-up date which requires an exit strategy. We generally realise our investment in a business at the same time as management wishes to do so, or an external event presents an opportunity to exit.

Does Avonmore give feedback on business plans submitted?

It is Avonmore’s policy not to give feedback on business plans that are sent through to us.

What stake does Avonmore take in the companies it invests in?

This varies according to the deal size and risk profile although they are almost inevitably minority stakes but with appropriate minority protection rights in the legal agreements.

Where does Avonmore get its deal flow from?

Avonmore gets the majority of its deal flow from referrals, be it from business angels, VCs or corporate finance boutiques. Speculative submissions of business plans are unlikely to be successful.

What is Avonmore's investment selection process?

If a plan is of interest, we will contact you for a phone or an in-person introductory meeting. Next steps will include in-depth due diligence on the company itself, the technology and the industry, including reference checking.

Is EIS a requirement for investment?

As Avonmore completes so many investments per year not all deals need qualify for EIS.

Avonmore’s Contact Details

Avonmore Developments Ltd
60 Chandos Place
Covent Garden
London WC2N 4HG

Tel: +44 (0)20 7836 3833
Fax: +44 (0)020 7836 8363

Email us: