Oxx, a new investment company which is striving to plug the funding gap for smaller businesses that are falling through the gaps between private equity and venture capital, has been able to raise $100m (£73.5m) for its first fund.
Oxx is set to focus its investment on business-to-business software firm in the United Kingdom, Israel, and the Nordics.
The commercial arm of the government-owned British Business Bank, British Business Investments, was the biggest single investor. Notable individual investors included the co-founder of venture capital firm Amadeus Capital, Hermann Hauser, and a Carlyle private equity veteran and the pro-vice-chancellor of Oxford University, Robert Easton.
Money was also raised through Ourcrowd, a crowdfunding platform, and from a number of wealthy Nordic and German families.
Richard Anton, a general partner of Oxx, stated: “There is a clear funding gap known by entrepreneurs as the ‘valley of death’, which claims many promising scale-ups stuck between early-stage venture capital and maturity.”
Anton added: “But these companies can bridge the gap and achieve explosive growth with the winning combination of capital and guidance from a hands-on investor with a deep understanding of the sector.”
He established Oxx together with Mikael Johnsson in 2017. Both formerly worked at Amadeus Capital, which has invested in notable tech firm such as Lastminute.com.
The fund is still open to additional investment. However, the “first close” will enable the company to start putting money to work.
Oxx has already invested in an internet-of-things security company that is called Forescout Technologies. Last year, Oxx helped list Forescout Technologies in the United States of America. It currently has a market value amounting to $1.5bn.