How long has Avonmore been
in operation?
Avonmore Developments was started in 1999.
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 other firms.
What is Avonmore’s industry focus?
Avonmore does not have any particular industry specialisation
although historically the majority of our investments
have been in 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 further afield if an appropriate local
lead-investor is already in place.
How involved is Avonmore in its investments?
Avonmore places a high priority on adding value
to the companies that it manages and prefers more
active rather than passive investment role. This exact
level of its involvement varies between companies
but is generally agreed prior to investment. 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 £100,000 up to maximum of £250,000,
although smaller sums will be considered in some circumstances.
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
an investment monitoring fee.
How many deals does Avonmore do per year?
Avonmore is not pressured into investing a fund
so it only does deals when it finds strong businesses
at the right price. Over the last couple of years,
Avonmore has generally made a couple of new investments
per year as well as further financing of companies
currently 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
it started in 2000, Avonmore has had only two investment
failures 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 at the same time
as management wishes to do so, or when 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.
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.
Does Avonmore provide debt financing?
In some circumstances Avonmore will provide debt
financing, but this is generally only when it already
has an equity stake in the company concerned.
Avonmore’s Contact Details
Avonmore Developments Ltd
6 Snow Hill
London EC1A 2AY
Tel: +44 (0)20 7002 7718
Fax: +44 (0)20 7002 7788
contactus@avonmoredevelopments.com
|