Network group for wealthly boosts venture capital network
High net worth networking group Pi Capital has teamed up with venture capital outfit Oxford Capital to seek start up opportunities.
Pi Capital chief executive David Giampaolo said: "Oxford Capital is rich in opportunities. Our members are rich in terms of capital. I believe we can do good business together."
PI Capital already has a referral relationship with BC Partners, which offers its members direct access to large deals. Pi members regularly invest in funds sponsored by rival private equity firms Alchemy and Englefield Capital.
Giampaolo said Oxford reviews 1,500 venture capital opportunities a year, although the number in which it invests is far smaller.
Pi will provide Oxford with access to new capital, as well as the expertise of its members, which will help more deals to stack up: "A health care opportunity, for example, might need hospital purchasing deals to be viable. That is where introductions from certain of our members would be useful," said Giampaolo.
He added that the price of good venture capital opportunities has fallen to bargain basemement levels, although gains will be long term in nature.
Some ventures will form the green shoots of the next recovery: "The funds of funds model is being challenged and this is leading sophisticated investors to revert to direct investment."
Oxford Capital, founded by Edward Mott, has skill in unearthing scientific opportunities. It currently manages £40m through its Oxford Gateway EIS fund, which takes advantage of tax breaks to invest in venture capital. Giampaolo said that the cross-referral deal would not lead to any cross-ownership of equity with Pi Capital.
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