42 Below entrepreneurs launch new scheme
The three key 42 BELOW players who launched the
company on the stock market are again in the market seeking
$8.5m from selected eligible investors. In short, since
selling and exiting 42 Below, Grant Baker, Geoff Ross and
Stephen Sinclair have invested personal funds in mobile
marketing company The Hyperfactory and Australian fragrance
and candle business Ecoya. Now they are accelerating an
investment strategy to build a bigger business based on a
venture capital model.
The limited partnership is called The Business Bakery LP (The Bakery) and will raise “first floor funding” from eligible investors for investment in the growth of their existing businesses (and for new ventures) in which the three will play an active role.
All the details in the attached and below and Geoff is available for comment.
Media release bakery – 1
September 25, 2008
42 Below entrepreneurs launch new investment vehicle
The entrepreneurs who launched 42 Below on the New Zealand stock market are at it again.
The trio behind the iconic NZ vodka - Grant Baker, Geoff Ross and Stephen Sinclair - are accelerating an investment strategy to build a bigger business based on a venture capital model.
The newly-formed business is a limited partnership called The Business Bakery LP (The Bakery). It is designed to raise “first floor funding” from selected eligible investors for investment in the growth of their existing businesses, and for new ventures in which the three will play an active role.
Since exiting 42 Below following the Bacardi purchase, the trio has invested personal funds in mobile marketing company The Hyperfactory and Australian fragrance and candle business Ecoya.
Grant Baker says The Bakery is targeting selected high net worth investors and aims to raise $8.5 million. No funds are being sought or accepted from members of the public. The group is being advised by Chapman Tripp.
“Our model is similar to that which is popular in the private equity sector. It’s a structure many investors feel comfortable with. The difference however is that we plan to be active in the businesses themselves – so in that regard we have traits similar to a VC firm.”
“For instance, if the business needs a marketing drive or brand make-over Geoff will dive in. If it needs better management accounting systems, Steve will lead that. If it needs a more efficient structure or business model, I will drive that. And we will run tight reporting systems back to The Bakery.”
Grant Baker says they are “pretty content” with the businesses they have at present and the funds raised from eligible investors will initially go in to growing those existing businesses.
“However, we are always on the look out for great opportunities without spreading our involvement too thin.”
Geoff Ross says they believe the first round of funding from the eligible investors for The Bakery will be completed within about four weeks.
“It’s a highly achievable figure and we have a select network of eligible investor friends and previous 42 Below investors – who like the way we operate and are active in investing.”
Baker says the group doesn’t believe the current economic climate will play a major impact on the business.
“The fundamentals of what is required to build a successful business remain the same in any climate. If anything it may provide for some sound buys in time. Basically our strategy is to put the foot down to build bigger businesses,” he says.
About Baker, Ross & Sinclair
Grant Baker was formerly chairman, Geoff Ross CEO and Stephen Sinclair chief financial officer at 42 Below, a business founded in 1998. 42 Below was sold to Bacardi in 2006. Baker and Sinclair have also been involved in building EFTPOS business Netco and electricity retailer Empower. They have now formed The Bakery to raise funds to invest in a number of existing and potential growth businesses.
About The Bakery
The Bakery is a limited partnership based on an early stage venture capital model with the managers actively involved in the investee businesses. It is named The Business Bakery LP because of its aim of bringing together the necessary ingredients to build small businesses into much bigger ones.