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Scotland's Pentech VC fund predicts final closing well above target

Penta Capital's early-stage venture capital fund, Pentech VC, plans to have a final closing at the end of September. The firm already has commitments of £17m, expects to raise at least £20m and hopes to reach £25m. It is great news for the Aberdeen-based software fund, whose original target was £15m when it started raising at the end of 2000. Its first closing was in July 2001.

‘We managed to raise money at a time when it was really tough to raise money, and I think that's a testament to the quality of the team,' said David Armour, director at Pentech Ventures. ‘But having raised that money, I can't think of a better time to be investing.'

The investors are divided almost equally between institutions including Scottish Widows and the Royal Bank of Scotland and high net worth individuals. Pentech has already made four investments and plans to focus efforts on up to twelve fledgling companies in order to be able to devote time and effort to each.

The fact that Pentech has managed to exceed expectations despite its focus on software in a climate seemingly hostile to the sector represents a grain of hope for VC funds with software experience. It may be tough to raise money at the moment, but it is not impossible.

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