According to Longbow Capital, the current economic environment is “ideal for investing in this asset class and sector”. This is because valuations have fallen owing to shortages of
venture capital available.
Longbow Capital is a founding partner of the Boots Centre for Innovation (BCI), an innovation hub that works with early stage companies or inventors to develop products for the shelves of Alliance Boots stores.
Julian Hickman, a partner at Longbow Capital, says the fund gives investors access to investment prospects that emerge from the BCI as well as other sources.
In a statement, Hickman says the relationship with Boots ensures that these products have access to a distribution network.
Longbow Capital is aiming to raise £10m for the new vehicle.
The fund, which will be invested by the Longbow executive team, comprises of Edward Beckett, Robin Finlayson, Julian Hickman, Ron Petersen and Edward Rudd.
The minimum investment is £10,000. Investors pay an upfront charge of 5 per cent and a management fee of 2 per cent. Longbow Capital is aiming to raise £10m for the new vehicle. The fund closes to new investments on April 1, 2010.