UK venture firm Octopus Investments has backed Sweet Cred, a children’s novelty confectionery business, with £5 million of expansion capital financing.
Octopus will partner with Sweet Cred to finance working capital growth and assist with the business’s strategic development.
Sweet Cred sells a range of products that combine sweets with toys themed around the five cartoon characters in the Sweet Cred gang. The characters are designed to appeal to children between the ages of 3 and 10. The products are distributed in Europe, the United States and the Middle East.
Steven Joseph, chairman of independent group Tangerine Confectionery, will join Sweet Cred as non-executive chairman while Harry Drnec, ex-managing director of energy drink Redbull, becomes a non-executive director.
Sweet Cred was founded in 2004 by serial entrepreneur Clive Garrad, who in his previous business had distributed energy drink Red Devil. He sold the UK rights of the drink to Britvic in 2003.
Octopus, founded in 2000, is one of the UK’s leading venture capital trust managers, with over 10,000 investors and £300 million under management. It provides equity finance of £2-£7million for management buy-outs, buy-ins and development capital deals for UK companies valued at up to £25 million.
Octopus was introduced to the deal by London-based corporate finance firm Acanthus.