Seraphim Capital is a growth stage (Series A) venture fund, headquartered in London, in which FOCUS and the New Vantage Group, of Vienna,VA have formed a joint venture (NVG/FOCUS LLC) to become one of four managing partners.

The ca.$60 million fund, at today’s exchange rate, is one of the first to be awarded in 2006 after the UK government announced the Enterprise Capital Fund (ECF) program to meet the equity gap in early stage venture funding. The ECF program is based on the US SBIC model, which enables the fund to take advantage of government provided leverage on attractive terms. Investment in about 15 companies over a 4-5 year period is anticipated. Nine investments have been made to date. The fund which will lead and co-invest has a standard 10 year life.

Seraphim is technology agnostic and will invest in companies that are up and running and need an equity boost to grow to profitability. A strong group of UK based partners includes Archangel Informal Investment, Edinburgh; Entrust, Newcastle; PI Capital, The Summit Group and Greater London Enterprise, London. Because it is angel managed, Seraphim is exempt from compliance with FSA (Financial Service Act) regulations in the UK, a distinct cost advantage.

With satellite offices in Birmingham and Edinburgh, the fund will invest in UK domiciled companies on a national basis. The participation of NVG/FOCUS, the only US entity in the program, means that due diligence on potential portfolio companies can be framed in a US context. It also means that portfolio companies will have a unique opportunity to achieve a soft landing as they expand into the American market. Three portfolio companies have already done so.

Seraphim’s investment criteria: a candidate portfolio company will be UK domiciled, with a technology or service in place, already making sales but requiring an equity boost to attain profitability.

For more information on Seraphim Capital, call FOCUS partner, Gerald Turner, at 202.470.1972 or email at: gerald.turner@focusbankers.com.