April 1, 2020 @ 11:06 by Alison Cowie
Despite the Coronavirus lockdown, Conviction Investment Partners is pressing ahead with plans to launch a new investment fund.
The Conviction Investment Partners Founders Fund will focus exclusively on fast growth, disruptive B2B software companies with global potential. It hopes to make between 15 and 20 such investments.
Jeremy Middleton (pictured), who co-founded the fund alongside Andrew Jenkins, said: “Venture capital should always be deployed for the long-term; at least five years not five months. An investable business with a fantastic idea two weeks ago does not automatically lose its potency because of this temporary emergency.
“We are still investing and will be launching this fund over the next three months and encouraging other investors to join us. The world will return to normal and businesses still need financial support to grow and develop.
“Imaginative and forward-thinking tech firms have proved their worth during this sudden downturn. In business who hasn’t video-called on one of the many platforms, bought something online, or used remote networking tools? The product innovation now supporting our NHS is also testimony to the speed at which tech solutions can be deployed.
“Now is not the time to shy away but, for the right company with the right idea, it is the time to invest.”
The syndicate Conviction Investment Partners offers ‘Just in Time’ finance to a select number of fast-growing companies. Rather than providing large blocks of expensive capital upfront, the ‘Just in Time’ model invests smaller amounts of money each year, subject to the company hitting the pre-agreed growth targets. This means that founders of companies are typically diluted much less than if they were funded through a traditional venture captial model.
It also means that syndicate investors can take smaller initial positions and add to them when and if the investee companies continue to meet the set metrics.
The Conviction Partnership is led by founding shareholder Andrew Jenkins, who has invested in disruptive technologies for ten years, most notably Mimecast, which is now Nasdaq listed at over $2 billion.
Andrew is supported by Jeremy Middleton, managing director of private investment company Middleton Enterprises Limited, and co-founder of home emergencies repairs business HomeServe plc, now a FTSE 250 company valued at over £3 billion.