Braveheart Inv Regulatory News (BRH)

22 April 2013

Envestors-led funding keeps ComparaFinanza.it

ahead in the insurance price-site market

Envestors Limited, the award-winning private investor network dedicated to helping investors source dynamic companies in need of growth capital, has led a €5.3 million equity fundraising for ComparaFinanza.it ("ComparaFinanza" or the "Company"), the fast-growing insurance price comparison website serving the Italian market. Of the total, €1.34 million was raised from the Envestors network.

Founded in 2010 and with its headquarters in London, ComparaFinanza (www.comparafinanza.it) is the only aggregator for insurance and financial products that is free, independent and regulated by both the Association for the Supervision of Insurance ('IVASS') in Italy and the Financial Conduct Authority ('FCA') in the UK. With its operational hub in Rome, the Company benefits from rapidly rising e-commerce traffic and a market that is undeveloped relative to the UK. ComparaFinanza has also begun comparing and selling personal loans and mortgages and is currently expanding into credit cards and bank accounts.

Envestors is a wholly owned subsidiary of Braveheart Investment Group plc (BRH), the AIM-listed investment management group specialising in venture capital investments and investment services to business angels, high net worth individuals, family offices and public sector organisations.

Participants in the fundraising include several insurance industry entrepreneurs, among them Grahame Chilton, former CEO of Benfield Group PLC, Chairman of Capsicum Private Office LLP and Non-Executive Chairman of Aon Holdings Limited, and Rupert Lowe, Chairman of Torus Insurance (UK) Limited and of the stockbroker W H Ireland Group plc.

Working with key partners such as Direct Line, AXA Direct, Admiral, Allianz Direct and ACE, ComparaFinanza is well positioned to both drive and benefit from industry transformation.

ComparaFinanza has built a powerful competitive position through a combination of an attractive, addressable market, entry timing, its lowest-price algorithm, cross-selling contact database and its agent network platform. The Company has achieved several significant milestones:

• Fourth-largest participant in Italy (number of policies sold) in less than one year of trading;

• Partnerships with 21 leading insurance companies;

• European insurance intermediary licence through FSA to operate in 27 EU countries;

• Building pan-European partnerships with large distributors of insurance products, such as agent and broker networks and banks;

• More than 6,000 policies sold;

• 300,000-plus contact database, with more than 47 data points each (Jan 2013);

• Revenues of €220,000 (2012);

• Reduced cost per acquisition of each policy well below revenue per acquisition (RPA), achieving positive gross profit, positioning Company to scale up sales volumes.

Robin Daina, CEO, and Guglielmo Carsana, CFO / COO, undertook extensive research into the European price comparison market. The 'one-stop shop' approach to insurance and financial products has grown strongly since launching in 2003. The UK has four large, profitable aggregators, together generating more than €676 million annual revenues. Similar trends are evident elsewhere in Europe.

Existing investors have maintained their current percentage holding in the latest round, following two earlier rounds that together raised €1.4 million. A further 25 individuals, many who worked in insurance with members of Company management, also participated.

"This funding round really sets us up for the next growth stage," said Robin Daina, a former country MD and European Director Business Development for the pan-European online insurance aggregator First Europa and ex-VP at AIG, where he led the acquisition of several online insurance aggregators globally. "We have built a strong position in a market that has huge potential. The Envestors team have done a great job conducting this round and are great people to work with."

Nick Taylor of Envestors said: "Robin and his team have identified a big opportunity and are addressing the market in a purposeful, innovative way."

Further information:

Braveheart Investment Group plc

Sanlam Securities UK Limited (Nominated Adviser and Broker to Braveheart)

Envestors Limited

ComparaFinanza

Media enquiries:

Allerton Communications

Notes to Editors

Braveheart Investment Group plc

Braveheart provides financing and associated advisory services for small and medium sized enterprises (SMEs) as follows: 

For the company looking to raise money, we provide:

·; Equity capital. This form of financing is typically long term and is usually appropriate for fast growing businesses or early stage companies. We will consider equity financings where our individual investment, or the investment we arrange, would normally be a maximum of £2m although we are happy to participate in larger financings as part of a syndicate;

·; Debt finance. Short to medium term and for companies with cash flow to service the loan. Our unit size for this type of finance is up £1m and we will usually provide junior debt which is unsecured but linked to an equity instrument;

·; Corporate finance advice on all aspects of raising money, strategic development and corporate governance.

The money we invest comes from a variety of sources (see below) and is sometimes linked to particular geographical locations.

To the investor, we provide a one stop shop service to those in one of the following groups who are looking for exposure to SME investments:

·; High net worth (HNW) individuals looking to build tax efficient Enterprise Investment Scheme (EIS) and Seed EIS portfolios;

·; Family offices and private sector institutions;

·; The Public sector.

Investors can choose between investment types ranging from self-build portfolios, to a full fund management service.

We have offices in Perth, London, Yorkshire, Manchester, Belfast, Jersey, the Isle of Man and Dubai. 

www.braveheartinvestmentgroup.co.uk

Envestors Limited

Envestors enables investors to source dynamic unquoted companies in need of growth capital. Comprising high net worth private investors, family offices, funds and venture capital sources, its network has helped over 65 companies raise in excess of £25 million, the majority of opportunities attracting taxation benefits under the Enterprise Investment Scheme (EIS).

Services to companies include intensive preparation for fundraising, initial due diligence and screening, facilitating corporate fundraisings through in-demand investor presentation events and face-to-face meetings with potential investors, and placing of non-executive talent.

Envestors was awarded the "Private Investor Network of the Year" at Investor Allstars in 2009 and again in 2011 and is a wholly-owned subsidiary of Braveheart Investment Group plc.

www.envestors.co.uk