Examples of the Network Effect

by | Jun 30, 2020

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Since 2009, it has invested in 58 companies, realising 18 and returning cash to investors every year since 2013. This investment activity and performance is underpinned by the Par Investor Network.  

The core Par team is made up of 17 professionals, with more than 70 years of collective EIS investment experience. The team is broad in expertise bringing insight and critical thinking to the investment process. However, Par’s Network Effect is delivered by 200 active members of its Investor community.  

Made up of serial entrepreneurs, business leaders and technology experts, these members all have a common interest in investing, and supporting, highly promising young companies, particularly in Scotland, Northern England and Northern Ireland. Crucially, many of these investors are on hand to help through the 4 stages of the investment life cycle, ensuring better outcomes for the entrepreneurs and improved returns for the wider investor base. 

 
  1. Deal Flow 

The firm was introduced to Novosound by a member of the Par Investor Network, Richard Cooper, who was instrumental in the formation and spin out of the company from the University of the West of Scotland. Novosound had developed a new ultrasound sensor technology, replacing conventional sensor materials, such as ceramic, with a flexible piezoelectric thin-film 

This is the most significant development in ultrasound in over 40 years and brings with it a whole host of new commercial applications for this patented technology. Par liked the technology and opportunity, but it was at a much earlier stage than usual for them – in particular, they felt the management team needed to be strengthened. They were pleased to see Cooper step up to join the team as CEO as part of the investment round. He had enormous technical knowledge in the space and experience in taking a technology company to a successful exit. An initial investment of £1.3m was led by Par’s EIS Fund and was supported by 20 further Investor Network Members, as well as the Scottish Investment Bank as co-investment partner.  

  1. Due Diligence

The Par Investor Network also supports the firm’s analysis and thinking as they conduct more detailed diligence on opportunities, providing confirmatory opinion as well as contrarian red flags. In one particular case, the Network provided an exciting prospective investee company in the med-tech sector with a credible management team and good early traction with some large pharma companies. The opportunity appealed. 
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