FIG in launch of new fund to help graduate start-ups

FIG, which was set up by two Leeds University graduates, said the FIG Concept Seed Fund will target high net worth investors with a minimum investment of £100,000.

FIG has provided finance for a number of university start-ups including Scratch Meals, which makes fresh meal kits containing all the ingredients needed to cook a complete meal from scratch in under 10 minutes.

The meals have been designed by chef Michel Roux Snr and are available in Sainsbury’s Local stores.

Another of FIG’s start-ups is MuJo, which has developed a new range of fitness equipment which trains multiple joints in a single exercise.

FIG has been raising funds for start-up firms for the last couple of years via a network of angel investors.

The angels generally commit to around 75 per cent of the investment needed and then FIG has had to raise the remaining 25 per cent.

While the original angel investor has been easy to find, FIG has found it time-consuming to locate investors willing to put up the remaining 25 per cent.

The idea of the fund is to provide a ready source of finance to back up the original angel investment.

FIG, which is hoping to raise around £6m, said the new fund will open up the venture capital market for retail investors who want some exposure, but don’t have the time, inclination or skills to be a fully blown angel invest-or.

It will also provide start-up firms with faster access to capital as FIG can top up their requirements from the fund.

Like FIG, the fund will focus on businesses managed and founded by students and graduates.

The graduate start-ups will be from a broad number of sectors – from fast moving consumer goods (FMCG) to manufacturing, fashion retail and neuro- science.

Mark Hanington, director of FIG and co-founder of the firm alongside fellow Leeds graduate James King, said: “We know there are individuals beyond the traditional angel investor with the appetite to invest in our early-stage businesses.

“The fund provides the perfect opportunity for these investors and it will complement our network of angel investors.”

FIG and its active investors will provide ongoing mentoring, advice and support to early-phase businesses throughout the investment lifecycle.

Adrian Clark, who will run the FIG fund, said: “FIG’s investment selection strategy is producing a fantastic portfolio.

“We expect to get investors’ money allocated and working very quickly.”