£160K London Business Angels' investment helps Cycell to close its over-subscribed £1m round

27 November 2012

Early stage, London-based, specialist mobile virtual network operator, Cycell, has closed an oversubscribed £1m round which included a £160k investment by a group of London Business Angels investors.  This funding round takes the total level of investment by London Business Angels into the company since August 2011 to over £300k. Cycell offers a full range of specialist white label handsets and airtime contracts, and has its own brand of Ownfone handsets (www.myownfone.com) which are some of the smallest, lightest and thinnest easy-to-use phones in the world.  The company has already launched its mobile service across the country through Age UK, its first major distribution partner .  The new funds will be used to fund further stock acquisition and to support the transition from trial phase to commercial scale operations.

Bill Darley, CyCell CFO, comments, “we are very grateful to London Business Angels for the rapid response to our funding proposal which enabled us to go from presentation to completion within the month.  Whilst we were already known to LBA members, this demonstrates how professional the membership is in its ability to respond rapidly to a strong investment proposal.  The rapid completion of the round has enabled Age UK and ourselves to get the uniquely easy-to-use handsets into the shops in good time for Christmas gifts for the elderly and the very young, and has already prompted interest from a number of national Daily newspapers.

Anthony Clarke, London Business Angels CEO, comments, “when Cycell presented to the LBA community on 27th September, they  had already received substantial commitments in the round which created positive deal momentum. As a result, they were able to close a £160k investment by a group of LBA members within 3 weeks as part of the oversubscribed round with a number of other interested LBA investors left disappointed! This is a good example of how quickly a company with strong management, a positive story and explosive growth potential can close a round once substantial commitments have been received. LBA investors have now invested over £300k into the company since August 2011 and we wish the Cycell team every success as they move into full scale operations with their lead commercial partner.”

London Business Angels
Anthony Clarke, Managing Director
Tel: +44 (0)20 7321 5672
E-mail: enquiries@lbangels.co.uk
Web: www.lbangels.co.uk

About London Business Angels

LBA is one of the most experienced private angel networks in the UK. Since the early 1980s the network has been connecting innovating fast growth small and medium sized enterprises with investment through our network of business angel investors. LBA, part of Angel Capital Group, is professionally managed by a highly experienced management team, leveraging over 15 years’ experience in the early stage investment marketplace as established leaders in the development of new angel-led early stage investment initiatives, and nearly 30 years’ investing experience through the LBA network. LBA is a founding member of the British Business Angels Association, the industry's best practice trade association, and is also a member of EBAN, the European Business Angels Network.

About the LBA EIS/SEIS Approved RoundTable Syndicate Funds

The LBA EIS Approved RoundTable Syndicate Fund is the culmination of 30 years’ experience of pioneering innovation in the UK Angel investment market. This FSA regulated HMRC Approved EIS Fund offers LBA Investors an innovative way to acquire a portfolio of investments, while taking advantage of the personal tax relief offered by the Enterprise Investment Scheme. The First £300k LBA EIS RoundTable Fund 2010 was fully invested in January 2011, making four investments in leading edge technologies during the previous year, spread across a range of sectors: Eykona (medtech); Syrinix (cleantech); ipadio (mobile); The Electrospinning Company (nanotech).

Following the successful 2010 Fund, the LBA EIS Approved RoundTable Syndicate Fund 2011-12 closed for subscriptions on 13 May 2011, being 40% larger at £420k. The fund invested in 5 leading edge technologies spread across a range of sectors: Camstent (medtech), Momentum Bioscience (medtech), Phase Vision (high value manufacturing), Michelson Diagnostics (medtech), Isotera (cleantech)

The LBA EIS Roundtable Syndicate Fund 2012, closed for subsciprtions on 5th April 2012 at £455k. The fund invested in 6 early stage companies.

The LBA EIS Roundtable Syndicate Fund 2013, closed for subscriptions on 5th April 2013 at £290k. The fund invested in 6 early stage companies.

The LBA EIS Roundtable Synducate Fund 2014 closed for subscriptions at £695k on 4th April 2014. The fund will seek to co-invest alongside London Business Angels in the next 12 months

The LBA SEIS Roundtable Syndicate Fund 2012, closed for subscriptions on 19th October 2012 and will seek to co-invest across 6-7 SEIS eligible deals alongside LBA investors