Fund TMT has raised £5m at first close to invest in scaleups working across the technology, media and telecoms industry throughout the UK.
The fund, which should increase to £10m by May 2018, will seek to invest between £0.5m and £2m per deal and will be managed by SPARK Impact.
FundTMT drew investment from angel investors and high-net-worth individuals, the majority of whom are entrepreneurs from the TMT sector.
Adam Zoldan, one of the fund’s co-founders, said: “FundTMT is specifically geared to facilitate a flexible range of uses including partial cash outs, shareholder consolidation, MBOs and acquisitions, in addition to development capital. The fund is simply applying a private equity model for smaller but ambitious businesses.”
The fund will be managed by SPARK director Mark Borzomato, supported by investment manager Matt Mawdesley, who joins the firm from NatWest’s TMT Corporate Banking Team.
Borzomato commented: “The TMT sector remains incredibly buoyant and presents a fantastic range of investment opportunities in businesses that have significant growth potential with the right level of funding in place. We are excited to have raised a fund from individuals who are keen to invest in people and businesses that they understand.
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“As well as offering investment, the fund will provide investees with access to some of the most successful entrepreneurs in the sector. The team have also made a significant investment in the fund themselves and are open to additional investment up to a final close in May 2018.”
The fund expects to announce its first investment in early 2018.