VGC Partners LLP (“VGC”) is a growth capital investor with a proven track record across five years of seed (SEIS) funds, EIS stage businesses and its £50.25m growth fund. VGC is backed by the British Business Bank as well as by family offices and high net worth individuals.
VGC Partners Specialist EIS Fund I will focus on brands operating at the intersection between the consumer, digital media and technology sectors. It will apply the same investment approach and portfolio company operational development as VGC’s £50.25m growth fund.
While most VCs invest across large segments of the technology sector, VGC is the only consumer, digital media and technology specialist operating in the small-end growth space in the UK. They invest in these sectors because they intrinsically understand these areas and are consumers of these categories. Their focus, including the networks and partners built-up over the years operating and investing in these sectors, puts them at a distinct advantage over competitors and helps win new deals.
VGC has a proven track record of growing and exiting businesses from seed through to growth stage in these sectors and have demonstrated a track record with EIS stage businesses, where with individual deal-by-deal they have exited five out of seven of their investments.
SuperAwesome, the kid-safe online marketing platform. VGC Partners invested into SuperAwesome at a valuation of $25m, helped drive revenue growth from £2m to £50m (a 117% CAGR), before selling the company in September 2020 for $275m to Epic Games. They arranged for some of their investment returns to be rolled into Epic Games shares and have since seen the company nearly double in value from $15b to $29b.
Iconic Images, the owner of legendary archives of photographic images from the 20th and 21st centuries by leading photographers such as Terry O’Neill. VGC returned the initial capital within 12 months and recently exited the remainder to Authentic Brands Group in New York in a £20m deal. VGC’s growth fund is near fully invested and has backed a number of fast growth brands, including Kick Game (luxury sneaker re-sale), Sproud (dairy alternative plant-based milk) and Percival (men’s fashion brand).
Since launching its first SEIS fund in 2017, VGC has invested £4.0 million across four seed funds in 25 companies and is investing the 2021/22 seed fund of £1.1m with investments so far including Retinize, an innovative virtual reality animation studio based in Northern Ireland.
VGC Partners Specialist EIS Fund I will make EIS-qualifying investments of £1.0-2.0m in technology-enabled companies that are addressing corporate innovation challenges and have proven product, markets and potential for rapid user or customer adoption and scalability. VGC has established an experienced team and network of strategic partners and co-investors who will facilitate investment, growth and exit of the investee companies. Companies have the potential to access follow-on funding from VGC or its network of corporate partners and VCs. The manager will deploy all investor capital within the 2022/23 tax year.