Pictured above: Jon Moulton
E-Synergy Limited, the fund manager for the East Midlands Early
Growth Fund, has seen experienced private equity investor Jon
Moulton acquire a 58% shareholding in the business. The City-based
venture capital company and the East Midlands Early Growth Fund
itself specialise in high-tech start-ups and high growth early
stage companies.
Mr Moulton has held a small shareholding in the company since
its formation, and recently bought the entire shareholdings of two
of the original founding directors.
E-Synergy made its first investment in 2001. Since then it has
managed several investment funds, all focussed on early stage
businesses. In September 2006, the East Midlands Development Agency
(emda), awarded E-Synergy the contract to manage the £5m East
Midlands Early Growth Fund. The Fund made its first investment in
Critical Pharmaceuticals Limited, a drug delivery company based at
BioCity in Nottingham in December 2006. Since then the regional
team led by Nick Wright and Robert Cawdron, based in E-Synergy's
Nottingham office, has invested in 24 companies throughout the East
Midlands.
Critical Pharmaceuticals Limited had, by the end of 2010,
received four rounds of investment from the Fund totalling some
£275,000 and this has, in turn, enabled the company to
leverage several million pounds of external investment from sector
specialists. A more recent example led by the team is the two
rounds of investment in Derby based Utility Exchange Online
Limited, which enables corporate and commercial customers to access
the most competitive energy prices. The Fund's investment of
£168,000 has been matched by over £500,000 of
investment by the management team and other external investors.
In addition to the management of funds, E-Synergy works closely
with early stage businesses to improve their potential for raising
investment finance. E-Synergy runs a series of proprietary
investment readiness programmes in the UK and Western Europe as
well as managing several UK funded programmes to provide management
and technical support for small businesses.
Jon Moulton said: "Having been involved with E-Synergy for a
number of years I believe the company is well placed to become a
key provider of investment and managerial support for early stage
companies at a time when the country as a whole badly needs to
encourage entrepreneurs to start new businesses and grow them into
the major corporations of tomorrow."
Ron Armstrong, Founding Director and Chairman of E-Synergy said:
"Jon Moulton has been a keen supporter of E-Synergy from the outset
and I am delighted that someone with his stature and experience in
private equity wishes to take a major stake in the business. It is
a vote of confidence in our business model and in our ability to
create shareholder value both in E-Synergy and in our portfolio
companies."
Rob Cawdron, of East Midlands Early Growth Fund, said: "Our work
in the East Midlands has been an important part of E-Synergy's
business for several years and we have high hopes that some of the
local companies in which we have invested will achieve substantial
business success. To have the endorsement of a prominent venture
capital and investment 'guru' such as Jon Moulton is very
encouraging and the benefits are sure to filter through to our
portfolio companies in the East Midlands and further afield."
John O'Reilly, Business Support Director at emda, which awarded
E-Synergy the contract for the Early Growth Fund, said: "E-Synergy
has been instrumental in the tremendous success of the Early Growth
Fund. The Fund has provided investment to numerous fast growing
companies in the East Midlands and helped many other businesses to
obtain the external investment they needed. Having the backing of
such an experienced businessman as Jon Moulton on board will enable
E-Synergy to support many more entrepreneurs over the coming
years."
E-Synergy is authorised and regulated by the Financial Services
Authority and operates from offices in London, Nottingham,
Newcastle and Belfast.