Ariadne Capital has announced the launch of its Ecosystem Economics Fund I in London, a £150 million investment fund focused on backing digital enablers.
Digital enablers are described as typically fast-growing, young businesses that bring the ability to exploit Ecosystem Economics to big and established businesses, transforming existing non-technology traditional industries.
The fund offers investors disruptive economics to its limited partners in that it is only charging a 1 percent management fee with 25 percent carried interest and no fees on the 3X co-investment platform. This reduces the fees associated with high-growth tech investment to 12.5 percent of the 100 percent they are normally.
Commenting on the launch, Julie Meyer, CEO of Ariadne, said: "At a time of subprime unicorns, the new investment opportunity set that we have developed is to back digital and platform enablers who are working with incumbent, large, established entities who are intent on re-inventing their industries, whether they be banking, insurance, retail, smart home or transportation. Distinct from a typical venture capital fund, the Ecosystems Economics Fund is one that will disrupt the industry by connecting these David and Goliath enterprises together, resulting in platform businesses that are anchoring the respective ecosystems in Europe."