Reportage 190829 BPC040
Strategic report

Spotlight
on venture capital growth

British Patient Capital has, since its inception, invested £319m into venture growth funds which target the scale up funding gap.

These fund managers will invest in businesses that typically have achieved product market fit and have a customer base. Their challenge is to scale the business.

Taking an innovative approach to our scale up agenda, we have invested £76m in three Opportunities Funds which also target businesses seeking later stage capital.

Opportunities Funds are raised and managed by venture capital fund managers to support stand out businesses within their early stage funds which want to scale up.

By raising an Opportunities Fund, an early stage fund manager can follow on their initial investments through into the growth stage with a view to maximising their overall return potential.

£76m

Taking an innovative approach to our scale up agenda, we have invested £76m in three Opportunities Funds

Case Study

Dawn Capital

£48.8m investment – December 2018

Dawn Capital backs start-ups that are building the next generation of enterprise software and financial technology. Based in London, it invests heavily in the UK, as well as more widely across Europe.

In 2018, British Patient Capital committed £48.8m to Dawn’s most recent fund: the Opportunities Fund. The fund will allow Dawn to make investments in entrepreneurs solving the greatest technology challenges facing businesses with scalable, game-changing technology. The fund is designed to allow further investment into existing technology in their portfolio, with specific focus on Series C rounds and beyond, as well as other high-performing late-stage European technology companies to expand its portfolio.

Dawn has found the cornerstone investment in the fund from British Patient Capital invaluable, enabling Dawn to bring in further investors and give entrepreneurs confidence as they support them in their growth journey:

“British Patient Capital acts as a terrific catalyst to the entire UK tech ecosystem, enabling talented entrepreneurs to embark on their journeys confident that there is capital available to build globally significant companies.”

Quantexa

Quantexa is an enterprise intelligence company, empowering organisations to drive decisions from their data and better understand their customers. By harnessing the latest advancements in big data and AI, it uncovers customer connections to solve challenges in financial crime, customer insight and data analytics. Its clients include HSBC and Shell.

Moving rapidly from start-up to scale up, Quantexa decided to raise finance in order to accelerate expansion plans in both the domestic and international markets.

In 2018, it secured Series B funding, including from British Patient Capital partner, Dawn Capital.

Since securing the finance, Quantexa has incorporated new subsidiaries and opened new offices. The funding also enabled the business to expand its sales and marketing teams and progress its R&D roadmap further, including the release of v1.0 of its product.

The team has now grown to over 160 employees with offices in London, New York, Boston, Brussels, Singapore, Sydney and Toronto.

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£48.8m

In 2018, British Patient Capital committed £48.8 to Dawn's most recent fund: the Opportunities Fund.

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Working with British Patient Capital, we look forward to helping many more businesses across the UK regions and beyond to grow.

Case Study

Scottish Equity Partners

£10m investment – June 2016

Scottish Equity Partners (SEP) is an established growth equity firm and for the last two decades has been helping founder-led teams to build their businesses and achieve their ambitions. With a strong focus on the UK, it has funded more than 160 companies including Skyscanner, Matchesfashion and CSR.

The firm’s recent fund, SEP V makes investments of £10m to £25m in growth-stage technology companies led by ambitious management teams, and plays an active and supportive role in their development. SEP V closed above target.

British Patient Capital’s support, through its investment in SEP V, helped SEP build a strong platform to continue to support technology and tech-enabled companies with world class potential.

“Our own objectives are closely aligned with British Patient Capital’s, namely to invest in innovative companies led by ambitious entrepreneurs.

“We also value its commitment to the UK venture capital and growth equity investment community, creating opportunities for managers to network, collaborate on investments and share best practice. British Patient Capital is strengthening the links across the broader private equity community, improving the efficiency of the private capital market.

“Working with British Patient Capital, we look forward to helping many more businesses across the UK regions and beyond to grow.”


SEP Jan Scotitish Equit

Content Guru

Content Guru is a leading cloud contact centre and customer engagement solutions provider. Founded in 2005, it owns and operates Europe’s largest communications integration cloud platform, storm®, and has offices in the UK, US, Netherlands, Japan and Germany.

Operating in sectors ranging from utilities and travel through to finance and government, its cloud services power some of the biggest contact centre solutions in the world, including for EDF Energy, Sodexo, G4S, Serco, and the NHS.

In 2017, having experienced strong organic growth, the founders decided to seek external investment to enable the company to scale further and take full advantage of the increasing market opportunity. Relationships, technology focus and track record were important considerations in choosing an external investment partner.

British Patient Capital fund manager SEP built a rapport with the team and went on to provide £25m of equity funding for a minority stake in January 2018, enabling the company to continue its strong growth, both in existing markets and new territories.

Since then, Content Guru has expanded its engineering, sales and marketing, and customer service teams, and invested further in product development. Its global growth strategy has accelerated with cloud services now offered in over 30 countries. The storm® platform was also named Vertical Application Solution of the Year at the 2019 European IT & Software Excellence Awards.

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