The IFA Magazine can exclusively reveal that Downing has launched a new fund which will, for the first time in the firm’s 28-year history, see it invest in high-risk, high-return early stage technology companies.
The Downing Growth 4 fund is being managed by venture capitalist Matt Penneycard who joined the leading VCT fundraiser last month. Presentations to IFAs are taking place in London, Manchester and Leeds this week and next.
Downing Growth 4 comes within Downing Ventures and will be one of a series of funds which follow a more aggressive investment strategy.
Penneycard told IFA magazine: “We’ll invest in seed EIS and EIS qualified companies, in the tech sector in the UK, and we’re looking for very fast growth situations. We believe that now is a fantastic time to be investing in the technology sector. Our personal and business lives are heavily influenced by technology, almost all of the time. Every hour someone, somewhere starts a new tech company that aims to enhance what we do and how we live our lives.”
The main focus will be on a number of key sectors, including consumer internet, enterprise SaaS, and defence and health technologies. Stakes will range from £100,000 to £1m.
Downing Ventures aims to fill the gap between angel investor and VC funds, believing that it’s in this space that they will find the leverage of stage, ownership and risk.
Deal flow will come from a number of sources, including their investment team, other VCs, incubators and crowdsourced investment sites.
The maximum size of Downing Growth 4 is set at £15m.