London and Belfast-based venture capital firm Iona Star LP has announced the successful first close of its new fund, raising £22 million. The operator-managed fund, which focuses on technology, AI, and data innovation, is now setting its sights on a final close of £40 million by the fourth quarter of this year.
Iona Star’s new fund has attracted substantial financial backing from two key players. The Castelnau Group, a leading investment company, has committed £10 million to the fund. Additionally, the innovative retailer Frasers Group has invested £10 million, bringing capital and valuable strategic insights and data to enhance the fund’s potential.
The fund plans to make investments ranging from £1 million to £3 million, targeting high-potential startups in AI and data innovation.
Behind the scenes of Iona Star
At the helm of Iona Star is a team of seasoned professionals with a wealth of experience building, scaling, and managing successful businesses. The leadership comprises Gerry Buggy, Mike Powell, Graham Ferguson, and Kevin McGivern. Their combined expertise as founders, C-suite executives, and senior leaders across various industries positions Iona Star uniquely to guide portfolio companies towards success.
Speaking to TFN, Graham Ferguson, co-founder of Iona Star, explained: “High-quality data is crucial for training sophisticated AI models that can predict, automate, and transform industries, powering the move from traditional deterministic computing to probabilistic, human-like decision-making. Our vision is to be at the forefront of technological transformation with a unique approach to investing in and nurturing early-stage companies that we believe are poised to redefine the technology landscapes at the convergence of AI and Data.”
Through its first fund, Iona Star has already demonstrated its acumen for identifying high-growth potential businesses. Notable exits include Quantile, acquired by the London Stock Exchange Group, and RxDataScience, purchased by US biopharma company Syneos Health.
“Unlike other venture capital firms, Iona Star is pioneering a model where investment in innovation can be paired with strategic data provision. We believe that the future of AI and technology investment is about more than just money. It’s about strategically empowering portfolio companies with the resources they need to innovate and lead, “ Ferguson concluded.
Investment strategy
The Fund’s investors benefit from the unique opportunity to engage with pioneering companies and technologies backed by the expertise and networks of the initial seed investors. Here are some of their visions:
Michael Murray, CEO of Frasers Group, said: “Data and AI are fundamental to our strategy, unlocking new ways for us to operate more efficiently while elevating the shopping experience for our customers. Our partnership with Iona Star LP will allow us to work with some of the best minds in this space to enhance our AI capabilities and accelerate the delivery of our growth ambitions.”
Castelnau Group CEO Richard Brown said: “Castelnau Group is excited to support Iona Star LP and the opportunities the team brings to the Group. Iona Star LP is intending to invest in a fast-moving segment of the market, with a management team that brings a successful and proven track record, and we are eager to see the benefits that Iona Star’s investments will bring to Castelnau’s wider investment portfolio – in particular, the ability to enhance Castelnau Group’s technological offering and data.”
Looking ahead: AI-Driven future
The successful first close of this fund and the calibre of its backers signal a decisive vote of confidence in Iona Star’s vision and ability to identify and nurture the next generation of tech innovators. So, will it be AI, data, or the intersection of both?
The post Iona Star Secures £22M in first close, eyes £40M target for AI and data innovation fund appeared first on Tech Funding News.