Business angel franchise backed by iTeddy founder sold for £2.45m

A MANCHESTER-based ‘business angel’ franchise backed by iTeddy entrepreneur Imran Hakim is part of a corporate finance advisory company which has been sold for £2.45m.

Envestors, which matches high growth companies with private investors, has been purchased by Scotland-based Braveheart Investment Group.

Envestors specialises in helping young dynamic companies raise funds from business angels or early stage venture funds.

Over the past three years, the firm has helped more than 60 companies raise in excess of £22m through business angel networks in London, the Home Counties and the Channel Islands. It also has associate operations Dubai as well as Manchester, which was launched in January.

Accounts show that it had turnover of £495,346 in the year to the end of March and and its profit available for division among members was £254,006. 

At that date, it had net assets of £23,542.

Braveheart Investment Group said that it has bought the company to give it a “broader service offering” to investors, a wider range of funding options for companies and a large database of private investors.

In addition to Mr Hakim, other partners working for the Manchester franchise include: Mike Perls, managing director of PR firm MC2; Scott Fletcher, chairman of ANS Group; and Tom Wilkinson, formerly of Business Link North West.

Mr Wilkinson, now managing director at Envestors Manchester and the North West, said: “Following our launch in the North West in January of this year and a series of successful events held, this partnership will allow us to offer an enhanced service and a greater number of opportunities to our clients.

“It will also enable us to add increased value to the high-growth company market across the region.”

Oliver Woolley, managing director of Envestors, added: “Since 2004 we have been building the Envestors brand and we had arrived at the point where it made sense to be part of a larger, more diverse organisation. 

“The marriage with Braveheart creates a strong and positive combination in the early stage venture capital market across the UK.

“The combined group will provide a more extensive offering to our 700 private investor and family office members, as well as additional services and funding opportunities for high growth companies.”

Chief executive of Braveheart, Geoffrey Thomson, said: “This is our third acquisition since we listed on AIM in 2007. 

“In our recently published annual report, I noted that our ongoing strategy is to continue to build shareholder value by way of both portfolio development and growth of our investment management business – this acquisition demonstrably scales our investment management business. 

“It gives us greater geographical reach, including a bridgehead into the expatriate market, and a unique and comprehensive suite of tax efficient products to offer high net worth investors. 

“It also reinforces our position in the growing angel investment market, a market in which the coalition government is particularly interested.”

The acquisition remains subject to the approval of the Financial Services Authority (FSA) and the satisfaction of a number of completion formalities.