A new £50 million venture capital fund has been launched to support start ups in the premium consumer market, it has been revealed.
Led by Redrice Ventures and backed by the British Business Bank (BBB), the fund brings together investors such as Robert Senior and Jonathan Heilbron, the former CEOs of Saatchi & Saatchi, and experienced early-stage investors Andrew Sutcliffe, Oksana Stowe and Tom March.
According to reports, the fund will target up to 25 new start ups and aim to take equity stakes of between 10 and 20 per cent in businesses that typically generate annual sales between £200,00 and £3 million – meaning the typical investment value will be between £250,00 and £2 million per business.
Commenting on the launch of the fund, Tom March, Founder and Partner of Redrice Ventures, said: “We’re really excited to launch this fund aimed at developing the next generation of premium consumer brands in the UK. Our brands have so far secured fast growth through challenging and disrupting established markets and established incumbents.
“Consumers are increasingly buying into brands rather than buying from companies. We’ll continue to invest in brands that define this mindful new culture, brands that build a community of fans.”
The BBB added: “The fund has secured the support of the British Business Bank as the cornerstone investor, as part of its Enterprise Capital Funds programme, which aims to increase the supply of equity capital to high-potential, early-stage UK companies and lower barriers to entry for fund managers looking to operate in the VC market.”
According to the latest statistics, the premium consumer market – which includes luxury fashion, art and makeup – has doubled in value over the last 20 years, from €128 billion (£92 billion) to €281 billion (£201 billion).
However, just eight per cent of venture capital investors have experience in investing in start ups in the premium consumer market.
To find more about the venture fund, please click here.
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