LONDON, May 6, 2015 /PRNewswire/ --
Freddie Achom CEO of Rosemont Group Capital Partners the London based early stage venture capitalist this month announced that his firm has set a target to invest in 20 start up and early stage companies by 2017. A majority of the companies will be UK based and predominately within the technology sector. Achom says Rosemont Group's strategy will be to focus sizeable portion of its future investments in internet and technology companies, emphasising on the early stage investments, as this is where he feels the group can add the greatest strategic value and acceleration, as well as hopefully achieving the best investment valuations and returns.
Given the unique characteristics of early stage internet companies, Rosemont Group will look to accelerate and maximise their portfolio companies' executional prospects by working directly with them. Rosemont Group hopes to invest in no less than 20 such companies, which will be carefully screened and evaluated prior to investment. The group will target early stage businesses that fall within or often below the conventional equity gap (generally businesses seeking anything from £50,000 up to £1 million).
Achom stated, "we intend to target the true equity gap for internet and technology companies because the business accelerators sector which applies less standard sizes of investment and offers greater executional assistance to digital SME's have demonstrated huge success in backing early stage companies with relatively smaller amounts."
The success of accelerator programmes such as Seedcamp, YCombinator, Betaworks, Techstars and LaunchBox to name a few, has highlighted the need for smaller VC investments. However, typically these programmes have served to increase the flow of new startups rather than specifically addressing the funding gap. Achom and his Rosemont Group are confident in reaching their ambitious target of 20 companies by end of 2016.
Another key factor that Achom was eager to emphasise was internet and digital technology companies require less operating capital to develop working products and solutions than other more traditional businesses. They typically do not have large capital expenditure requirements, don't produce or manufacture hardware or tangible goods, don't hold inventory and do not have returns or leakage to contend with.
Achom continued by saying "recent industry trends such as using open source software for building services, cloud computing for storage or processing requirements and distributed flexible teams all contribute to the unique ability of digital SME's to start a project, product or company within months or even weeks for less than the amounts typical VCs look to invest. There is a gap and we aim to achieve as larger market share of this space as possible."
With the primary emphasis on seed or early stage, it is envisaged that some proportion of these investments Rosemont Group will lead and others it will take a back seat. Rosemont Group has already lead investment rounds with AppyParking, JustGo and just last month with Vivid Technologies, investing alongside Sunbridge Capital and Telefonica's accelerator programme.
ABOUT ROSEMONT GROUP CAPITAL PARTNERS:
Rosemont Group Capital Partners is an early stage venture capitalist firm founded in 2003 by British entrepreneur and venture investor Freddie Achom. It's portfolio is as wide ranging as digital technology, bio technology, solar technology, financial services, land and property development to more high profile ventures in the entertainment sectors. More recently, Achom has re-aligned the group's core focus to investment opportunities in early and growth stage digital technology innovation alongside key investments in bio and clean technology companies in developing markets. Rosemont Group is headquartered in London with international offices in New York and Mumbai.