chapter  10
21 Pages


For this case study, PG, the principal, was a financial institution owned by the public sector which managed about £10m. of venture capital funds. The public nature of its funding should be no surprise to those familiar with the roots of 3i in the ICFC.1 There is indeed a long history of the public sector playing an active role in stimulating private investment. PG supported smaller investments than did either PJ or PH, being willing to provide as small a financial package as £42k. The maximum contemplated was the relatively low threshold of £1.3m., and the average investment involvement was £300k. The agent, AQ, produced or supplied a range of software services and products for retail computer users. The special attribute of this chapter’s case study is that PG managed funds on behalf of local authorities, rather than banks, financial intermediaries or corporations. The treatment makes explicit reference to the subscription agreement, as this appeared to have an unusually high influence on the form which investorinvestee relations took.