Braveheart Inv Regulatory News (BRH)

25 Sep 2009 07:00



25 September 2009 

Braveheart Investment Group plc

("Braveheart" or the "Group")

Follow on Investment in AppShare Limited 

Braveheart (AIM: BRH), the technology commercialisation and investment management company, announces that it has made a follow on investment in AppShare Limited ("AppShare" or "the Company"). Braveheart invested via both its Strathclyde Innovation Fund and its Alpha Fund. Scottish Enterprise's Scottish Co-investment Fund also participated in the round, which totalled £180,000.

AppShare was formed in 2007 as a spin-out from the University of Strathclyde. The company has developed a collaborative software solution, simply known as "AppShare™", which allows the sharing of electronic information and software applications between groups at different geographical locations. AppShare™ is unique in that it can be integrated with other existing software applications and its multiple collaboration sessions have minimum impact on network performance for other users. The software is also intrinsically capable of being more secure than most of its competitors.

The collaboration systems market is forecast to reach $2.8 billion by the end of 2010.  

The Company will use the investment to refine and pilot the technology with two or three medium and large enterprises, and to develop partner relationships and sales channels.

Commenting on the funding Stephen Behan, CEO of AppShare Ltd, said: "AppShare has developed the first Desktop Application Collaboration technology that is optimised to work in medium and large enterprise network environments. Using technologies that are the subject of recent patent applications, we believe we have redefined the future of desktop collaboration within such enterprises. We now have a proven design and are building a pilot product that will enable us to prove our technology and develop commercial partnerships. This investment demonstrates the continued confidence of our investors in AppShare's technology."

Geoffrey Thomson, Chief Executive of Braveheart added: "AppShare has significantly enhanced its offering over the past year and will soon be in a position to provide real solutions to a wide variety of businesses. We are excited to see the Company move towards commercial trials, bringing it one step closer to the market".

For further information please visit www.braveheartinvestmentgroup.co.uk or contact:

Notes to Editors

Braveheart

Braveheart Investment Group is a technology commercialisation and investment management company based in Perth, Scotland. Since its formation in 1997 it has made the transition from start-up angel syndicate to fully listed company. Braveheart's shares listed on AIM in March 2007.

Investments are made in young, emerging, unlisted companies where there is potential for significant growth through successful commercialisation of IP and Braveheart enjoys close relationships with several universities to identify emerging technologies. Investments are predominantly technology-focused; however the Group also maintains limited exposure to more traditional businesses.

Braveheart's diverse portfolio currently comprises around 30 companies and it has completed over 80 deals in its twelve year history, including six IPOs, three trade sales and eight write-offs and has an exit IRR of 33%.

At the 2008 Ernst & Young Entrepreneur of The Year Awards (Scotland) Braveheart CEO Geoffrey Thomson was given a special award recognising his contribution and support of emerging technology businesses in Scotland over the past decade.

On 8 June 2009 the Group announced the acquisition of Inkopo Limited. This acquisition, based principally on an earn-out consideration, gives the Group an established presence in Yorkshire, an additional revenue stream and further complementary income from investment facilitation and management activities.

The Strathclyde Innovation Fund ("SIF" or "the Fund")

An agreement to create the Strathclyde Innovation Fund was announced in 2007 by Braveheart and the University of Strathclyde. SIF has the exclusive right of first refusal to fund all commercial investment opportunities that arise in respect of intellectual property emanating from the University of Strathclyde. The fund is unique in its structure and is the first of its kind in a UK higher education institution. A first closing of the fund was achieved in September 2008, with initial commitments totalling £4.5 million from investors including Braveheart, the University of Strathclyde and Strathclyde alumni. This also included Scottish Enterprise's Scottish Co-investment Fund, which will co-invest alongside the SIF by committing a specific allocation for use by SIF. SIF will operate for an initial period of eight years, extendable to 10 with the agreement of the partners in the fund.

Braveheart Investment Group's operating subsidiary Braveheart Ventures also acts as Fund Manager of SIF. Under the terms of the partnership, 25 per cent of the Fund Manager's performance bonus is paid back to the University, providing it with further direct benefit from those opportunities which succeed in generating returns. SIF also makes a small contribution to the running costs of a department that sponsors a successful investment application.

The commitments made at first close are over a five year period and provision has been made for additional closings to bring in other potential partners over the next two years. AppShare is the Fund's second investment.

The Alpha EIS Fund ("the Fund")

Established in December 2005, the £2.5 million Fund was set up as a tax efficient vehicle to invest in early-stage, university spin-out companies, rich in intellectual property, with potential for significant growth, through the commercialisation of their IP.

The Fund is managed by Braveheart Ventures, and participants and co-investors include Scottish Enterprise's Scottish Co-investment Fund and Braveheart's own clients. The Fund committed to deliver a minimum of ten EIS qualifying investments, sourced through the Group's unique framework of strong formal relationships with Scottish universities and business parks.

AppShare is Alpha's tenth investment and to date the fund has invested approximately £1.5 million.

Scottish Enterprise

Scottish Enterprise is Scotland's main enterprise, innovation and investment agency and is focused on supporting business growth and developing a competitive business environment. Working in partnership with industry, academia and the public sector, SE aims to play its part in delivering the Scottish Government's new economic strategy to increase productivity in Scotland by helping businesses grow, encouraging greater innovation and creating the right conditions for companies to access property, markets and finance.

Scottish Enterprise has a joined up investment approach which offers risk capital investment for Scottish businesses at various stages of growth. The Scottish Seed Fund provides equity and, in some cases, loan investments from £20,000 to £100,000 to early-stage businesses that meet the criteria and are keen to grow. The Scottish Co-investment Fund is a £72 million equity investment fund established by Scottish Enterprise, and partly funded by the European Regional Development Fund, to invest from £100,000 to £1 million in company finance deals of up to £2 million. The Scottish Venture Fund was set up by Scottish Enterprise in conjunction with the Scottish Government to invest £500,000 to £2 million in company finance deals of between £2 million and £10 million. 

Further information can be found at www.scottish-enterprise.com