Pentech Ventures, the early-stage venture capital fund currently being raised by Glasgow-based Penta Capital, has earmarked a September final closing as it looks to improve on the original £20m target announced July last year.
To date, the fund, which is targeting early stage software and technology investments in the UK and Ireland, has received commitments from a number of prominent UK institutions, including a £5m investment by Scottish Widows, and more recently commitments from Bank of Scotland and Old Mutual.
David Armour, director at Pentech Ventures, said he was confident that the fund would surpass its original target. “We’re looking to go above the £20m mark and hope to raise up to £25m by the end of September.”
Armour added that problems facing the technology market made it a difficult environment, but added that lower valuations meant it was still an attractive time to be investing. “The software market is tough at present, but there are still good opportunities available,” adds Armour. “The challenge is to find strong markets which can exploit new technology.”
The fund has so far made commitments totalling £4.5m, with Armour adding that a further three or four deals are in the pipeline, including a follow-on investment in one of the firm’s four previous investments.
Investments to date include a £650,000 investment in Applied Generics, an Edinburgh-based company developing mobile tracking services, and Rhetorical Systems, a developer of text-to-speech software. The fund has also invested in Automsoft and Aircraft Management Technologies, both headquartered in Dublin.