Seraphim is a consortium of Business Angel networks and corporate venturers
across the UK, led by GLE, which have joined forces to raise £10m of private
investment, with £20m of UK Government backing, to manage one of the UKs new
Enterprise Capital Funds. The ECF programme is a new multi-million pound scheme
set up by the UK Government to boost investment in fast growing small and
medium-sized businesses in the UK.
Seraphim's partners include Business Angel networks from the South
East represented by London Business Angels and Pi Capital, Advantage Business
Angels in the Midlands, in the North through Entrust and in Scotland through
Archangels. The corporate venturers involved are General Capital Venture
Finance, The Summit Group and GLE. An exciting dimension to the Fund consortium
is the addition of funding from Focus Enterprises a US investment bank and New
Vantage Group one of the leading US Angel Groups.
The structure of the Seraphim partnership has created an extensive network,
particularly within the UK but also globally. The Fund has strong connections
with leading businessmen and other investor groups which provide access to a
range of financial assistance. The Fund also has good connections across a
range of commercial and professional companies which can provide young
companies with introductions to help their businesses. In addition, the Fund
encourages interaction between our portfolio companies to share solutions to
problems and new ideas.
Seraphim's choice of an 'Angel-led' structure for its Fund reflects the fact
that each investor wishes to be party to the investment decisions, in contrast
to most conventional managed fund schemes. Each investor partner has nominated
a representative to the Investment Board, which is directly and actively
engaged in making investment decisions on behalf of the Fund.
Subject to an agreed term sheet Seraphim fees include a 3% arrangement fee for
the initial investment. The Fund uses low cost standard legal agreements which
keep the legal fees payable by the company for completion of an investment to a
minimum, typically £10,000-£15,000. The majority of due diligence is undertake
using in-house expertise. Post investment the Fund charges portfolio investee
companies a modest annual fee of 2% to cover the costs of ongoing monitoring
and liaison.