Amadeus Capital raises £33m towards new tech start-up fund

UK technology investor Amadeus Capital announced it has raised £33.2m to launch a major new fund, targeted at early stage tech companies in high-growth sectors.

The Amadeus IV Early Stage Fund is an Enterprise Capital Fund (ECF) which will seek to invest in UK companies developing ‘disruptive technologies’ in emerging sectors including ‘big data’ analytics, cloud computing and cyber-security, low power computing, medical technology and the ‘internet of things’.

Amadeus has raised the £33.2m from British Business Bank ECF sponsorship alongside investors including corporates, trusts, foundations and high net-worth individuals.

The firm, which was founded in 1998 by Austrian entrepreneur  and computing industry pioneer Hermann Hauser, has invested in a number of early-stage companies to date; most recently overseeing the sale of Scottish software company OneDrum to ‘enterprise social network’ Yammer.

The previous Amadeus investment fund was a £10m seed-focused fund; this latest early-stage fund will be targeted at growing companies which have passed the seed stage.

Amadeus said it was especially looking for ‘lean start-up’ opportunities, whereby minimal viable products are developed, tested, and adapted to keep up with market needs.

The company added that the UK currently offers one of the most promising environments in Europe for tech start-ups, with initiatives such as the government-backed Business Bank, the Technology Strategy Board, Tech City, the R&D tax credit scheme and Entrepreneur Visas all contributing to the growth of the sector.

Alex van Someren, managing partner of Amadeus’ early stage funds, said: “Demand for investment for potentially disruptive technology start-ups is increasing at a time when early stage capital is very scarce. This presents a real opportunity for early stage funds such as ours.

“The Amadeus team has been building and backing technology companies for a long time; we see a wealth of potential today in certain sectors. Naturally, I am grateful to all our investors who have made it possible to invest in and support that potential.”

Ken Cooper, managing director of venture capital solutions at the British Business Bank, added: “Our Venture Capital solutions, such as the Enterprise Capital Funds, are designed to help unlock funding for ambitious, innovative businesses.

“This new fund from an established team at Amadeus is an ideal fit for us and we are delighted to be making this investment. The Amadeus team brings a wealth of experience in building successful businesses and in making and managing early stage technology investments.”