London, 20 November, 2019: MMC Ventures, the research-led VC, has closed a new £100 million Scale Up Fund providing later stage capital to its fastest-growing portfolio companies. Bluetower Associates acted as both advisor and placement agent to MMC.
The Scale Up Fund will provide primary capital to current portfolio companies that have grown beyond the mandate of MMC Ventures’ existing funds and will be able to participate in secondary transactions; offering liquidity to early MMC investors as well as third-party investors. In this way capital can flow back into the early-stage funding ecosystem allowing MMC to take a longer-term outlook.
MMC has already made investments from the Scale Up Fund into portfolio companies: Safeguard Global (alongside Accel KKR), Masabi (alongside Smedvig Capital), and Interactive Investor. MMC can now take companies from £50,000 to £25 million investments.
Bluetower has now raised four growth funds for UK VCs. Each one is structured with institutional capital so that the manager can continue to back its best performers and extend its investment capabilities beyond the mandate of its current funds.
Bruce Macfarlane, Co-Founder and Managing Partner at MMC Ventures, said: “The launch of our new Scale Up Fund is a major milestone for MMC and a significant innovation in the UK venture market. Bluetower’s advice on the fundraising and structuring of the Fund was essential to the process. Their relationships in the investor community and knowledge of what is achievable in the direct secondary space meant we were able to secure commitments within a few months and that was despite Brexit uncertainty. We look forward to working with them again.”
Tim Griggs, Managing Partner at Bluetower Associates, said: “Bluetower is pleased to have had the opportunity to work with one of the UK’s leading investors to deliver a new source of funding to the UK tech ecosystem. Bluetower is one of a handful of advisors with a track record of bringing institutional capital to the tech space, a major driver of economic growth and employment.”