What is Avonmore’s investment selection process?
If a plan is of interest, we will contact you for a phone or in-person introductory meeting. Next steps include in-depth due diligence on the company itself, the technology and the industry, including reference checking.
Where does Avonmore get its deal flow from?
Avonmore gets the majority of its deal flow from referrals from business angels, VCs or corporate finance boutiques. Speculative submissions of business plans are unlikely to be successful.
What stake does Avonmore take in the companies it invests in?
This varies according to the deal size and risk profile although they are always minority stakes.
Does Avonmore give feedback on business plans submitted?
Due to the number of business opportunities we see it is our policy not to give feedback on business plans that are sent to us.
Does Avonmore require SEIS/EIS Tax Relief?
If SEIS or EIS tax relief is available on making an investment then this may be utilised. In some cases Avonmore will take the same class/share-rights as other investors in a round irrespective of the tax relief available.
Does Avonmore manage 3rd party funds?
Avonmore doesn't mange 3rd party funds. It does, however, work closely with several HNW's, family offices and VCs in pulling together significant investment syndicates for individual deals and often works with the same investment partners on several deals.
In Asia, Cocoon Capital manages 3rd Party funds.
Over what time period does Avonmore expect a return on its investment?
As Avonmore is a private company, we are not tied to a fund wind-up date requiring exit strategies for underlying investments. 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. Our shortest successful exit has been in 18 months and longest 16 years...
Does Avonmore provide debt financing?
In some circumstances we will provide debt financing, but this is generally only when we already have an equity stake in the company concerned.
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.
What is Avonmore's track record?
Please see the Portfolio section of this website for examples of our investment record.
How many deals does Avonmore do per year?
Avonmore is not running a fund so is free to do deals when it finds strong businesses at the right price. Over the prior few 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 is the relationship between Avonmore and Cocoon Capital?
Both Avonmore and its Singapore office (opened in 2013) are owned by founders Simon and Michael Blakey and are interlinked, making direct investments in both the UK and Asian markets. We recognised, however that there was growing investment appetite from international investors to access the early-stage Asian investment market and this lead to the launch of Cocoon Capital in 2016, which manages 3rd party funds. Wherever possible, we maximise the benefit of having both European and Asian deal-flow and co-investors for the benefit of Avonmore and Cocoon portfolio companies.