UK-based venture fund Episode1 has secured a £37.5 million (roughly $60 million) fund to invest in early-stage technology startups.
The new fund is dedicating to helping entrepreneurs build “businesses, not startups,” the website explains. What this means it that founders will be expected to have a solid business plan and generate real revenues, unlike many of the overly hyped consumer-tech startups in Silicon Valley.
The fund is a combination of public and private money, with an undisclosed sum from the UK government. Prime Minister David Cameron has repeatedly stressed that the booming technology sector will provide jobs and opportunities for British youth.
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The partners include some of the UK’s most prominent entrepreneurs, including Alex Chesterman, founder and chief executive of Zoopla Property Group, Tom Allason, founder of Shutl, Nick Austin and Alan Bennie, co-founders of the Vivid Toy Group.
The partners will invest seed funding (approximately $1-3 million) in 20 or 30 early-stage startups. The fund won’t be dedicated to any particular vertical, but will broadly invest in disruptive mobile and Internet companies.
Vince Cable, the UK’s secretary of state for business, innovation and skills, said in a statement: “We are determined to give entrepreneurs the financial support they need to grow. This new £37.5 million Enterprise Capital Fund will target a serious gap in the equity market for high growth small firms.”