US-style mentoring for early stage technology fund Pentech

An early stage technology fund investing in UK and Ireland has been set up that plans to use an advisory panel of seasoned technology entrepreneurs to add value.

Pentech Ventures (Pentech) wants to be investing between £0.25m and £1.0m in early stage technology companies that have created strong intellectual property with high software content. The fund will be managed by Penta Capital and intends to offer what it calls 'US style hands on support' to investee companies.

Pentech will be run by technology entrepreneur Eddie Anderson, who joins the board of Penta Capital, and David Armour, formerly a partner in corporate advisory firm AMCo.

An advisory group, each of whom have invested in the fund, has been set up as a partnership and consists of both UK and US serial technology specialists. Most have had experience in building start-up technology businesses through to either flotation or trade sale.

Pentech will invest in voice, infrastructure, telecoms, development tools, publishing and software solutions and financial analysis tools.

The institutional investors in the fund include existing Penta backers Bank of Scotland and Old Mutual. A number of entrepreneurs and business angels have also invested besides the Advisory Group.

The Fund currently has £12m of commitments and is aiming to close at between £15m and £20m.