VCT Industry Report 2015-16

80 / 92

80
2013 - $14.4m
Technology / IT
Bath
45
Zynstra delivers cloud managed IT infrastructure for Small-
Medium Enterprises on a subscription based model, available
with the installation of minimal hardware. By leveraging hybrid
cloud technologies, Zynstra offers the services of a corporate-
grade IT infrastructure at an affordable cost. Zynstra works with
Managed Service Providers and IT retailers who re-brand the
service and resell it through their distribution channels.
RATIONALE FOR INVESTMENT: Octopus was extremely
impressed by the calibre of the management team and their
experience given that they are serial entrepreneurs within the
enterprise software space. The Zynstra team founded and
grew Cramer Systems that they sold for more than $400m to
Amdocs in 2006. In addition, the Zynstra technical platform
solves a real pain point for SMEs who do not have the in-house
expertise to manage complex IT systems.
VALUE ADDED BY VCT MANAGER: Working with Octopus
has been a very positive experience. As an investor, they
have provided much more than just money, adding valued
experience at board level and through their network of
portfolio companies. One of their Venture Partners, Ian Perry,
has provided us concrete, tangible advice and active support
as we build out a global B2B SaaS sales team.
In addition, we’ve been able to leverage Octopus’s network
in the technology space on several occasions, allowing us to
more easily connect to senior people in relevant organisations,
including large global corporates, with positive results.
COINVESTORS: Octopus Ventures and high profile angel
investors.
May 13, May 14, Jun 15
Retail
London
56
Swoon Editions sells high quality furniture at insider prices.
Sourcing direct from factories in India, China and Vietnam,
it buys in container quantities and sells direct to consumers.
Cutting out the middlemen, shops and warehouses allows
Swoon to sell beautifully hand crafted furniture at fair prices.
RATIONALE FOR INVESTMENT: Swoon operates in a large
and attractive market and is pioneering a new and disruptive
business model for e-commerce. Octopus was extremely
impressed by the calibre of the management team, the vision
of the company and the innovative business model.
VALUE ADDED BY VCT MANAGER: Octopus is an active
participant on the board at Swoon Editions. It has facilitated
numerous introductions; has set up numerous press and
media opportunities; and advised on debt negotiations.
GROWTH IN REVENUE AND EMPLOYMENT: Swoon has
grown its headcount from 15 employees in May 2014 to 56 in
October 2015. Revenue has grown 200% per year every year
since investment.
0800 316 2298
Octopus is a fund management business with positions in several specialist sectors
including healthcare, energy and smaller company investing. Founded in 2000, Octopus
manages over £5 billion of funds on behalf of 50,000 investors.
Octopus works with financial advisers to create investment solutions that combine its
expertise in smaller company investing with government approved tax reliefs. The core
product range currently includes VCTs, EIS and IHT services.