Amadeus closes new fund for UK seed investments

Funding availability

Amadeus Capital Partners announced the close of its £10 million Amadeus and Angels Seed Fund (AASF). The fund is made up of £6.5 million of UK government money received through the Enterprise Capital Fund, and £3.5 million from Archangel Informal Investments and over 50 private investors from across the UK. These private investors bring a wide range of technology skills and management experience to the fund.

In practice, AASF will make up to £20 million available for investment in high growth seed technology businesses, through 50/50 co-investment with Amadeus’s institutional funds.

Amadeus was awarded the Enterprise Capital Fund money in May this year and completed all detailed negotiations in September. The remaining £3.5 million was fully subscribed within a month.

AASF, to be managed by Laurence John, CEO of the Amadeus Mobile Seed Fund, will fund up to ten UK start-ups that have the potential to then attract first round funding from Amadeus’ main funds. Each investment will be supported with mentoring and follow-on finance. AASF has already made its first investment in XMOS, a Bristol-based fabless semiconductor company.

To date Amadeus has backed some 60 companies in Europe and Israel in computer hardware and software, mobile and fixed communications and medical technologies.  It was one of the first investors in Cambridge Silicon Radio, which floated on the London Stock Exchange (LSE) in 2004 and also in Optos, which floated on the LSE earlier this year.  

In 2001 Amadeus raised £3 million through the Amadeus Mobile Seed Fund to provide seed finance of between £250,000 to £1 million to fund companies until they were groomed for formal first round funding. Two investee companies, Nujira and Enigmatec, have gone on to raise substantial rounds from other leading venture investors, together with Amadeus’ main funds.

Commenting on the closing of AASF, Laurence John said, “This is the space where the disruptive technologies that effect real change for businesses and consumers are developed, yet it is one which the UK has been slow to support.  We are delighted that the government has recognised the importance to the economy of seed finance with the ECF initiative.”