Northern Venture Managers has invested £1.25m of first round funding into Cedalion, a software consultancy based in Edinburgh.
Cedalion said the financing would be used for acquisitions and for “beefing up our core proposition”.
“There are a couple of companies that we want to buy,” said Tom Burnet, commercial director at Cedalion. “They will add profile and skill sets. We are also in the process of turning from an entrepreneurial into a corporate business. This requires a degree of formalisation, which takes cash.”
Burnet is pleased to have a local investor on board. “Northern Venture Managers are great. They are local to us, which means it is easier to build the relationship with them than if they were in London or the US.”
Cedalion is a software consultancy. It is aiming for a three year period of sustained growth, during which it would continue build its client base in the financial and government sectors.
Northern Venture Managers specialises in making equity investments of between £500,000 and £4 million in unlisted UK companies. It was established in 1988 and is based in Newcastle upon Tyne, Edinburgh and Reading.
Deloitte & Touche acted as the placement agent for the financing.