Frasers Group, led by Mike Ashley, supports a £40m AI startup fund in the UK, emphasizing innovation in technology.
- Iona Star, a venture capital firm, raises £22m in the initial closing of its AI-targeted fund.
- Frasers Group contributes £10m to advance AI and data technology startups in collaboration with Iona Star.
- Ocula Technologies co-founder Gerry Buggy and his team foster strategic growth through this fund.
- Previous successful exits by Iona Star, like the sale of Quantile, exemplify their expertise.
Frasers Group, under the leadership of billionaire Mike Ashley, is significantly investing in the technological frontier by backing a £40m investment fund aimed at early-stage AI and data startups. This initiative highlights Frasers Group’s commitment to technological advancement and innovation.
Iona Star, a venture capital firm located in London and Belfast, has successfully secured £22m in the initial phase of its new fund. This fund specifically targets startups in the AI and data sectors, offering investment amounts ranging from £1m to £3m.
In a strategic move, Frasers Group has committed £10m to this fund, reinforcing its alliance with Iona Star. Michael Murray, CEO of Frasers Group, articulated the importance of data and AI technologies, stating they are fundamental to the company’s strategy in enhancing operational efficiency and improving customer experience.
Iona Star is helmed by Gerry Buggy, co-founder of Ocula Technologies, which partners with retail groups to innovate product page enhancements using AI. Recently, Ocula raised £3.25m, exemplifying its potential in the AI retail landscape. Buggy emphasized leveraging operational expertise and strategic networks to accelerate the growth of portfolio companies.
The new fund has garnered an additional £10m from Castelnau Group, bolstering financial support for cutting-edge market segments. Richard Brown, CEO of Castelnau Group, expressed enthusiasm about the management team’s track record and the anticipated positive impact on their investment portfolio.
Iona Star, founded by experienced industry leaders Mike Powell, Graham Ferguson, and Kevin McGivern, has previously facilitated successful exits, including Quantile, acquired by the London Stock Exchange Group for £274m, and RxDataScience, which merged with Syneos Health, demonstrating their capability to navigate complex financial landscapes.
The strategic investment by Frasers Group in Iona Star’s fund marks a pivotal step towards advancing AI and data startup growth in the UK.
