Situation
BreakingViews.com was founded by Hugo Dixon and Jonathan Ford, both of whom previously worked for the Financial Times on the Lex Column, in December 1999.
BreakingViews.com had previously raised a small amount of start-up financing in 1999 and engaged ARC Associates in early 2000 to raise further significant financing to accelerate the development of the Company's website, hire more staff and to finance an aggressive marketing campaign.
Approach
ARC Associates assisted BreakingViews.com management in the development of the business plan and co-ordinated investor discussions.
Along with private individuals, a number of possible venture capital funding sources were identified in the UK, Europe and the US. ARC executed an extensive call programme to each of these investor groups, and managed the subsequent discussions.
From the group of interested investors that emerged from the initial discussions, ARC Associates advised on the formation of the most attractive syndicate for BreakingViews.com, helped negotiate the key terms of the investment and assisted with the process through to closing of the transaction.
The Transaction
On 5th May 2000, ARC Associates successfully completed an equity funding from a number of investors including Downing Classic Venture Capital Trust and Pino Venture Partners through Kiwi II, its telecoms, media and technology fund, along with several private investors.
Immediately on completion The Wall Street Journal Europe acquired a 7% stake in BreakingViews.com. As part of this partnership, The Wall Street Journal Europe will carry from the summer an exclusive daily column provided by BreakingViews.com.
The total value of the fundraising was £4.0 million.