Michael Birch has joined forces with Lastminute.com co-founder Brent Hoberman to launch an investment fund aimed at putting European tech start-ups on an equal footing with their US counterparts.
European Founders Capital (EFC) will provide an initial £20m of funding to early-stage tech companies, rising quickly to £50m.
Birch, who sold social network Bebo to AOL last year for £418m, intends EFC to bridge a funding gap that’s previously limited the development of European tech businesses, and catalyse a US-style eco-system where tech entrepreneurs actively look to reinvest in emerging companies.
“We aren’t taking institutional money. All the money comes from founders; people who have done it before,” Birch told today’s Sunday Times.
Birch and Hoberman say EFC will fill the funding gap between business angels who typically invest between £50,000 and £250,000 and VCs, which tend to invest £1m-plus into ideas beyond initial concept stage.
They’re joined by Peter Dubens, who built up the Pipex broadband business sold to Tiscali for £210m in 2007 and Hoberman’s old friend Rogan Angelini-Hurll, the former city analyst who an turned down the chance to co-found Lastminute.
According to Hoberman, who more recently co-launched interiors site MyDeco.com, there couldn’t be a better time for EFC to launch: “We are going to see some great, disruptive companies coming out of this downturn,” he said.
www.ukba.co.uk
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Well done Brent et al
I saw this in the papers at the weekend and thought "At Last" they understand what we need. Mandelson didn't do it but Saint Brent can. This is where we need the money to go. This is what can make a significant difference to people with good businesses that can go a long way.
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