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Technology Accelerator Fund

This new Fund was launched in August 2009. It becomes the third fund managed by Chord Capital. The Fund will invest in a focussed portfolio of technology companies which, with the exception of life sciences, has no sector bias.

The investee companies will have readily marketable products which are generating first product revenues but which still require expansion capital to reach a cash positive position. The companies will have global ambitions; they will have at least the core of a relevant and experienced management team and they will have valuable and defensible intellectual property. These companies will be frustrated by the current lack of capital available to "accelerate" their product to market - in short, the substantial risks to commercial success will lie in the execution of a business plan rather than in technology development.

The criteria that we at Chord Capital will use to assess an appropriate investment for the Technology Accelerator Fund are outlined below.

Fund Strategy

The Fund has a five year term.

Initial investments will be in the range £0.5-2m and may be as a lone investment or through co-investment with Chord Capital leading.

An investment by the Fund must result in a significant shareholding interest.

Investments can be in public or private entities.

Location of companies will be in England and Wales.

Appointment by Chord Capital of a Non Executive Director to the Board is a condition of investment.

Chord Capital is an active investor and, where appropriate, will provide part-time executive resource where it is felt that this will build value in the business.

Investment Criteria

The Company must have a marketable product which has no technology or developmental risk and where scaled production has been demonstrated. While the product must be deliverable, there may be a roadmap to future development.

Revenue should be demonstrated by having already achieved invoiced sales with a strong pipeline of customer orders.

The company must be close to cash breakeven or planning to reach cash breakeven within 18-24 months based on the business plan.

While the management team may need further strengthening, an experienced and backable CEO and a strong commercial or sales director are essential.

We are seeking ambitious management teams who are eager to build value in their businesses quickly and who can articulate a clear exit strategy in a 3-4 year timeframe.

The company must have defensible Intellectual Property; while this would normally be in the form of patents pending, consideration will be given to "first-mover" and "know-how" type I.P.

Sector preferences are: B2B rather than retail plays; direct trading relationships rather than licence type models (this does not preclude international expansion by licensing or joint venture); life sciences are not included in the Fund remit. Preferred sectors include:

Alternative energy and environmental technologies
Medical devices
TMT
Software
Materials

At Chord Capital, we would be interested in discussing business opportunities that conform to the guidelines described above. We are happy to work with co-investors and to lead fresh investment rounds and syndications.