CitySocialising raises £260,000 from London Business Angels investment

11 March 2009

Female CEO raises investment to fund completion and roll out of V2.0 into additional UK cities

London, 10th March 2009.

CitySocialising (www.citysocialising.com), the social network that enables outgoing professionals to connect offline with new local friends through shared interests in cities around the UK, has raised £260,000 of early stage investment from a syndicate of investors and management led by the London Business Angels network. This investment will fund further growth into new cities, complete the development of a new web platform and initiate marketing.

Launched in London in January 2007, CitySocialising subsequently rolled out sister-networks in regional cities around the UK, including Manchester and Leeds. Although the current site is relatively basic, the business has achieved annualised revenues of £300,000 despite being developed on a shoe-string budget. The site is based on a user subscription model, whereby users can sign up for free to create a profile and try out the site, then can opt to pay a subscription to attend and organise locally-based social activities to meet and socialise in groups with others from the CitySocialising network.

The second version of the site, which will include live city event listings, bespoke event creation tools, much improved social networking functionality and a site redesign, will be launched in May 2009. The site will also imminently launch in further new cities, including Newcastle, Sheffield, Liverpool and Cardiff.

Sanchita Saha, CEO of CitySocialising commented:

"The long term value of the CitySocialising proposition is underscored by the fact that we have raised this investment despite the global economic crisis. Somewhat uniquely for an internet business, we've been generating revenues from almost the beginning and have therefore been able to expand quickly into additional cities through organic growth.

This investment has come at an excellent time for us. We're in the midst of building our extensively developed version 2 site which is set to launch in May and the funding enables us to acquire additional expertise to our management team, expand our development unit and initiate marketing as, to date, our growth has been purely via word-of-mouth and natural content optimisation. The London Business Angels network was supportive throughout the fundraising process and CitySocialising will hugely benefit from the expertise our investors bring."

Anthony Clarke, Managing Director of London Business Angels commented:

"CitySocialising represented a unique opportunity to our investors; a profitable social networking site with a dynamic entrepreneur who has bootstrapped the company to its current position. With high growth in both members and subscribers and one of the highest retention rates we have ever seen - CitySocialising is providing a service which its members are clearly comfortable paying for despite the economic downturn."

For more information, please visit: www.citysocialising.com or www.lbangels.co.uk.

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