Quintet sets up venture capital fund

By ELEANOR TRICKETT, campaignlive.co.uk, Friday, 01 September 2000 12:00AM

Five media owners have joined forces to create Accelerator Media, a pounds 36 million venture capital fund. It is headed by Alan Brydon, CIA Medianetwork’s former managing director, and Philip McDanell, previously the operations director of Yahoo!.

Five media owners have joined forces to create Accelerator Media, a

pounds 36 million venture capital fund. It is headed by Alan Brydon, CIA

Medianetwork’s former managing director, and Philip McDanell, previously

the operations director of Yahoo!.



Channel 5, Guardian Media Group, Jazz FM, Media Initiatives and GWR have

all signed up as media partners for the operation, which will invest in

second-stage funding for new-media and technology business in return for

equity. Representation from an outdoor and a technology company is

expected shortly.



Accelerator claims to have a unique system whereby the investors commit

not only cash in return for shares, but also advertising inventory.



’Hitherto, venture capitalists have invested with cash alone, which is

used in the open market to buy media as any normal advertiser,’ Brydon

said. ’We have a unique virtuous circle. Because the media owners have a

stake in our advertiser companies, they have the same vested interests

as the advertiser.’



Accelerator is close to announcing its first investments. The companies

must have a marketing requirement, on which Accelerator will advise.



McDanell said: ’At this stage of their businesses, the companies might

not have a marketing director. We will be there for investment and for

hand-holding, helping them appoint an agency.’



Of the pounds 36 million, pounds 20 million has been provided by

Gold-Zack AG, the financial services group specialising in pre-IPO

investments.



This article was first published on campaignlive.co.uk

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