Portfolio Updates

RISINGSTARS GROWTH FUND CELEBRATES 24 IN 24!

25 October 2004

The RisingStars Growth Fund is celebrating the completion of its 24th investment in two years.

Of the twenty four deals completed, the Fund, which invests in high growth early stage technology companies in the North West, has invested in nineteen new businesses, with four of the investees relocating into the region in order to obtain start up funding.

Colin Willis, Investment Director for EV, says "Our portfolio is growing and covers a broad range of technologies from software for semiconductor design, to natural products to combat heart disease. These businesses are growing rapidly and we have already major valuation uplifts with other funds investing once we have helped shape or create the management and prove the technology. With some of the portfolio now moving into revenue generation we are obtaining interest from brokers and major corporates in taking the businesses to a float or trade sale."

The Fund was launched in 2002 with a first closing of £9.5m and doubled its size to £19m in 2003. Investors in the Fund include the Northwest Development Agency, Local Authority Pension Funds of Greater Manchester and Merseyside, the Co-operative Insurance Society and Bank of Scotland.

The Fund's Investors commented;-

"NWDA is delighted that its investment in the RisingStars Growth Fund has already enabled so many new businesses to start up and develop a diverse range of innovative ideas and technologies. We look forward to the continued growth of many of these companies and a continuing programme of investment in innovations and technologies emerging from the North West in the coming years."
Vivienne Upcott Gill, Head of Business Finance at the Northwest Development Agency

"GMPF has been impressed with the relationship that has developed between investors and the RisingStars Growth Fund team since the Fund was established. The portfolio of investments made to date is an interesting blend and prospects for those companies and the Fund appear to be promising."
Steven Taylor, Head of Pensions Investments, Greater Manchester Pension Fund

"Bank of Scotland is committed to finding new and innovative ways to support companies with growth potential. It's encouraging to see investments in such a diverse range of businesses, and we look forward to continuing our relationship with the RisingStars Growth Fund."
Liz Campbell, Director of Equity and Mezzanine, Bank of Scotland Corporate

"Merseyside Pension Fund is pleased with the progress made to date by the Fund and the working of the team at Enterprise Ventures. We have been encouraged by the diversity of the portfolio and its potential to grow significant businesses from start ups within the North West area. At this stage, the Fund has performed beyond our expectations."
John Parry, Assistant Director of Finance, Merseyside Pension Fund

"The CIS has long wished to invest in North-West technology companies with strong commercial potential. We have been impressed by the quality of the team that Enterprise Ventures has put together to manage the RisingStars Growth Fund, and by the promise that the investments in the RisingStars portfolio are showing. RisingStars is leading the way in the financing of start-up technology companies in the UK."
Richard Hotchkis, Investment Manager (Managed Funds), Co-operative Insurance Society

The RisingStars Growth Fund is unusual for the UK venture capital industry in that it is a commercial fund which invests at the seed or start-up phase, and will also invest at the 'proof of concept' stage. To be considered by the Fund companies must be based in the North West and demonstrate excellent commercial prospects, and are likely to receive the funding in stages against development milestones. In addition to finance, the Fund offers considerable support and guidance in assisting companies with their management selection, strategic, technical and market development.