We have acted for IQ Capital Partners in two investment deals which will provide significant expansion plan financing for two fast growth technology businesses.
Corporate finance partner Zickie Lim led the teams representing the Cambridge-based venture capital firm, which specialises in investing in early and developing high-tech businesses.
The deals involved a syndicated investment in Power Challenge, a leading provider of internet multi-player sports games, and a two-stage investment of £1 million in Rosslyn Analytics, a rapidly expanding spend analysis company.
The Power Challenge deal also involved restructuring the Swedish-headquartered group and relocating its head office and part of the business to the UK. The new funding will be used to scale up the company’s Manager Zone game, which allows thousands of users to play together in an interactive sports manager world.
Rosslyn Analytics, which has already won four business and technology awards, will use the investment to fund international growth, sales and marketing, and to support an increased development programme.
Mills & Reeve’s Zickie Lim, who has advised IQ Capital in respect of most of their portfolio investments, said both deals were significant, coming at a time when early stage funding for businesses, particularly in the equity gap of £250,000 to £2 million, is scarce.
“With UK venture capital investment rates collapsing in 2009, it’s encouraging to see IQ Capital continuing their funding activities into 2010 with investments not just in their existing portfolio businesses, but also in new companies,” she said.
IQ Capital’s investment in Power Challenge was leveraged by the company’s existing investors. These included Israeli venture capital company Benchmark Capital, which had already invested in this exciting online gaming business, demonstrating a real confidence in the ability of the Power Challenge team to deliver a world class online games business.
Rosslyn Analytics, another fast growing company, is revolutionising the way in which organisations view their spend data. In a climate where recession forced companies are under pressure to reduce their cost bases and allocate budgets more wisely whilst enhancing business performance and managing business risks more effectively, Rosslyn Analytics have a superior solution which is no longer a “nice to have” but a “must have”.
Zickie Lim was assisted in the deals by corporate solicitors Pippa Pearce and Jonathan Greenwood, tax partner Chris Townsend and employment senior solicitor Andrew Secker.