Edge Investments has raised GBP85 million for its second venture fund, Create the Future, which is targeting a final close at GBP100 million.
The British Business Bank, the cornerstone investor in the fund, has committed GBP50 million through its Enterprise Capital Funds programme, which aims to increase the supply of equity capital to high-potential, early-stage UK companies and lower barriers to entry for fund managers looking to operate in the VC market. This is the second investment from the ECF programme to an Edge fund, following a GBP24 million commitment in 2015 to Edge’s Edge Creative Enterprise Fund (ECEF).
The creative economy is one of the world’s fastest growing sectors, worth over USD2.2 trillion globally, and comprising 11 per cent of the total UK economy. By recognising talent beyond academic achievement, the creative economy enfranchises social mobility and wealth generation across socio-economic boundaries.
Edge’s Create the Future has attracted investment from a stellar group of entrepreneurs, business and creative leaders who have a deep understanding of technology and intellectual property. Investors include Tim Steiner, Founder of Ocado plc, sports and outdoor brand powerhouse Pentland Group, leading independent live music promoter Simon Moran, “Paw Patrol” and “Bob the Builder” creator Keith Chapman, musician Gavin Rossdale, former Airbnb Head of Creative James Goode, Google/YouTube International Head of Kids, Family & Education Greg Dray, Snap France co-founder Emmanuel Durand, former BILD Editor-in-Chief Tanit Koch, eLearning specialist Andrew Brode, and ITV chairman Sir Peter Bazalgette.
Edge backs companies led by exceptional management teams with ambition to become global category leaders. Edge’s Create the Future will invest in businesses in the creative economy, companies pushing the boundaries of creativity in sectors such as edtech, virtual/augmented reality (AR/VR), adtech, content creation and distribution. It is investing primarily in early-stage businesses which have established product market fit, writing initial cheques of between GBP1-5 million and following its investment to help drive growth in those companies.
Edge was founded by David Glick. The investment team is led by Simon Andrews. Fundraising was led by David Fisher.
Glick says: “Creativity, art, education and culture, enrich and improve the quality of all our lives through their consumption and enjoyment, and through the technological advancements they inspire.
“If you don’t have social mobility, you don’t have civilisation. The creative economy is a great jobs engine, it rewards talent, grit and determination as much as academic brilliance. Edge’s role is important in providing a bridge between the creative economy – which suffers from a lack of access to finance – and private capital markets, in making a positive contribution to the overall wellbeing of society and in empowering social mobility.”
Simon Andrews, Chief Investment Officer, Edge Investments says: “The creative economy is one of the fastest growing economic sectors, yet deep expertise in investing in creative businesses is lacking, and the conventional tools of venture capital fail to appreciate their true value. The Edge team has decades of experience as investors, advisors and operators in the creative economy that allows us to identify the most exciting companies in the sector and help them to deliver on their growth potential.”
Ken Cooper, Managing Director, Venture Solutions, British Business Bank, says: “The Bank’s Enterprise Capital Funds programme is key in helping to develop and maintain an effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers and for those targeting less well-served areas of the market. By continuing our support of Edge and their second fund, we are helping to unlock successful financing and support of early stage, high-potential businesses operating in the creative economy.”
Edge launched its first fund in 2016 and has backed some of the most promising companies in the creative economy for the past six years. Its portfolio includes: social content producer Jungle Creations, audio advertising personalisation company A Million Ads, online video news community and marketplace Newsflare, and global esports network BLAST.
