PRAETURA VENTURES
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ondon is the undisputed heavyweight champion of the UK when it comes to venture capital investment. In fact, the city is packing some pretty serious punches when it comes to Europe, too. In 2019 it received greater amounts of VC funding than anywhere else on the continent. Venture capital activity grew in the UK by 54% in 2019, with London accounting for the lion’s share of deals (and value). As an asset class, venture capital is hotter than it has ever been. But for investors, how big is the opportunity for capital growth outside of the capital? For one Manchester-based fund manager, Praetura Ventures, the answer is clear. According to the Patient Capital Review, and research from PMSI Strategy LLP, growing, funding-hungry businesses in the North suffer a shortfall in venture funding of between £700m and £1.4bn every year. London has over 90 venture capital firms. The North has fewer than 10. A recent report from the British Business Bank has seen equity investment in the North increase by over 130% in the past five years. The opportunity for a knockout in the North is there: The Hut Group and Boohoo.com are perhaps two of the most famous examples.
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GB Investment Magazine · April 2020
The demand for genuine venture capital in the North presents an enormous opportunity for investors seeking returns from early-stage companies. It’s also a founding rationale of Praetura Ventures, who seek to predominantly back businesses from the North of England. Praetura was set up in 2011, raising capital and investing in the early stages of business lifecycles. Founded by Mike Fletcher, David Foreman and Peadar O’Reilly, the team floated Preston-based Inspired Energy PLC providing their investors with a 16x return. Eight years later, after investing over £40m in equity across 25 portfolio companies, David Foreman launched Praetura Ventures. Building on the strong track record laid by the original business, Praetura Ventures’ Praetura EIS 2019 Fund closed in May 2019, breaking the record for the largest ever maiden EIS fund at £15.0m. A smaller, top-up fund closed in January 2020, taking the business’ total raised to over £22.0m in its first year alone. In its first 18 months, the company has grown to 26 people, with one of the UK’s largest EIS-focused venture capital investment teams. In line with its more than money approach, Praetura Ventures’ portfolio team provides tangible value to the business it has invested
