Frequently Asked Questions

• Who founded Ariadne Capital and why?

• Ariadne Capital was founded by Julie Meyer in the fall of 2000 and incorporated in early December 2000. Since then, 40 'founding investors' have invested in Ariadne Capital. These are some of the most successful entrepreneurs in the world.

  We set out to back the best entrepreneurs in the world who have global ambitions and to work with those management teams to build category-defining, world-leading firms out of Europe

  Innovation doesn't come easily, nor does creating a company. A team with an attitude that says "we're in this together" is as important as a partner with deep industry knowledge, a strong network of contacts, the willingness to think big and the ability to move fast. Ariadne looks at technology investing from the perspective of supporting the entire process of early-stage company development.

• What is Ariadne Capital?

• Ariadne Capital is an investment and advisory firm, which invests in early stage private firms, and advises later stage private and public companies.

  We provide our portfolio companies access to our network of industry executives and investors, hands-on management and Board level assistance to implement strategic, operational and financial plans. We help our companies to build momentum by accessing capital, securing executives, building customer bases, advising them on their ‘go to market’ strategies, and positioning themselves for exit.

• Are you regulated?

• We are regulated by the UK Financial Services Authority.

• What is your strategic asset?

• Ariadne Capital has a network of relationships which is robust in strength and depth. We are typically only one to two degrees of separation away from the people that we need to access.

• What is your business model?

• Ariadne has a hybrid business model of equity and fees which works because it aligns objectives between us and the entrepreneur we are backing.

  When we engage with entrepreneurs, we take a small equity stake for the engagement which may vest over time for the overall "Ariadne bearhug" that we deliver in accelerating the momentum of our portfolio companies.

  This is complemented with a success fee where there is a clear transaction: secure a partnership, raise capital, sell a business.

  We always work on a retained basis, but these fees are never excessive as we think like entrepreneurs ourselves. We do however want to crystallize in the CEOs' minds of our portfolio companies that there is an opportunity cost to whatever we do, and they are buying access to our network of relationships, our ideas, our time, our funding partners, and our portfolio.

  We have great access to capital not only because we are part of the venture capital community in Europe and North America, but because family offices and the private investment vehicles of deep-pocked entrepreneurs select to work with us in both bringing us deals and backing our deals. In addition, we have 42 founding Investor Members who put capital into Ariadne Capital deals; we can syndicate an early stage deal up to £1 m.

• Do you sign Confidentiality Agreements of NDAs?

• No. Our word is our bond, and we treat confidential information as we would want our own to be treated.

• How do you manage conflicts of interests?

• We take potential conflicts of interest very seriously and make all the necessary disclosures in writing within 24 hours of recognising that there is a potential one. In this way, we diffuse them before they become real.

  We do this for one reason only: our reputation. Its value is gold to us and we will do nothing to compromise it. This concept is core to the world in which we operate where disclosure and transparency are fundamental values.

• Do you help companies find key talent?

• Yes we do. What "location, location, location" is to the real estate business, "management, management, management" is to our business.
  

  
  We find the talent that makes the capital work.
  

  We find that senior, experienced managers "check in" with us regularly - knowing that we know what's going on, who's looking for whom, what's getting funded, and what the latest hot opportunities are. We also place board members.

  If you are an experienced senior manager open to being considered for new opportunities, or if you would like to see a complete list of our client references in this space, please contact us at: talent@ariadnecapital.com

• What is an "Unfair Advantage"?

• At Ariadne Capital, we believe that a company must fundamentally possess an "Unfair Advantage" - an unbeatable leg-up on its competition. It is something else that "nobody else could get anywhere." It extends one step further, the notion of a "Unique Selling Point" such as the company's business concept, superior and marketable technology, an experienced team, or strategic investors.

  Ariadne Capital's 'Unfair Advantage' is our access to the right talent, customers, partners and investors to fast track companies into achieving their objectives.

  As Jerry Garcia, of The Grateful Dead said, "You do not merely want to be considered the best of the best. You want to be considered the only ones who do what you do."

• Do you invest in any of your clients?

• We do invest our own capital and that of our founding Investors as well as closely associated funding partners. We will raise an investment fund in 2008.

• Do you have a venture capital fund?

• We have great access to private capital, and have twenty equity stakes in companies of ~ 1%. We will raise an investment fund in 2008.

• What do you mean by "Trust is Efficient"?

• Julie Meyer coined this phrase while she was building the First Tuesday Global Network.

  As Francis Fukuyama argues in his book, Trust, the ability of a society to create "spontaneous sociability" rather than acting in a short-sighted, selfish, opportunistic manner, plays a huge role in the making of economic society.

  Ariadne Capital’s relationships with its Investors, Team and Portfolio Companies are based in trust. We believe that this has enabled us to be more successful over the long-term.

  Ariadne Capital is a group of business leaders who are driving a new global growth story.

  Leaders are those who create a context of trust within which success and growth can happen.

• What sectors do you work with?

• Please click here for more information on the sectors that we work with at Ariadne Capital.

• What do Ariadne’s portfolio companies say about Ariadne Capital?

• Richard Duvall, who launched the internet bank, Egg, and is now running the internet lending business Zopa, describes Ariadne as a "pretty unique service". It helped Zopa secure funding for a US launch later this year, but has also helped with technological problems as well as sales and marketing. "Julie will come along and say: 'I've been thinking about this over the weekend and I think you should look at such-and-such.' She's pro-active," says Duvall. His definition of Meyer perhaps goes to the heart of what the critics are missing. "She is a connector, not a networker - a crucial difference. Connecting means actually getting results - putting two partners together and creating the conditions for them to do a deal," he says. [From the Sunday Telegraph]

  "Ariadne Capital's network of 'successful entrepreneurs turned active investors' is invaluable to the entrepreneur who is looking for value-added capital. I have experienced first-hand their ability to identify and help secure investors who fit with the needs of my business," Alex Cheatle, CEO and Founder, Ten UK, the leading lifestyle management firm.

  "Ariadne Capital's network of capital, talent and access to sales leads has helped me to build Intamac into a leading European digital home service provider. I would recommend them to other growing companies who are looking for time-to-market advantage," Kevin Meagher, founder and MD, Intamac.

  "Ariadne Capital's people have positively impacted Skype's growth from early days within the company. They have helped me execute my vision and strategy, accelerating my time to market." Niklas Zenstrom, Founder and CEO, Skype.

  "Ariadne Capital are more than just super-smart and connected advisors. They are passionate about results and relationships and they simply work harder than most firms to match people and assets,” Steve Goldberg, Chief Strategy Officer, Intellisync

  "Ariadne Capital's team are hungry to help growing companies. They have a can-do attitude and an international network. Their team brings a blend of start-up operational, deal-making and technology expertise which has helped develop 118 800," Murray McPherson, Director and Co-Founder of the 118 800 Group.

  “…The round is almost closed …. Thanks to you for all your great efforts in making this possible. You kept going when many would have given up…. I look forward to working with you on future projects. Rod MacGregor, CEO of NanoMuscle”

  ".... a special thank you to the team at Ariadne Capital, who have been supporting us on the fundraising and business development side. …you’re great and it’s pleasure working with you! Some of our best deals have come out of Ariadne!" Stefan Roever, CEO and Founder, Navio