Parkwalk Newsletter - Investment in Tangentix
 
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Parkwalk Newsletter - Investment in Tangentix
 
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Tangentix

We are pleased to announce that we have closed a follow-on investment into Tangentix for the Parkwalk Opportunities Fund and a Parkwalk Syndicate, alongside Enterprise Ventures (EV) and Finance Yorkshire. This follows on from a £1.4m fund-raise in March 2013.

 
 

Dear

Tangentix was formed to commercialise new mathematics from the University of Bradford for representing 3D objects using Partial Differential Equations. The company holds key patents on these techniques and others developed for other different compression challenges. More recently Tangentix has developed its unique Progresive DRM™ technology to allow games to be distributed to users for free without worsening the piracy problems that concern most publishers.

GameSessions 

Tangentix has launched GameSessions™ a web based service that allows users to try PC games through free trials, with the option to rent or buy the game once the trial has ended.

Players download a full copy of the game 2-3 times faster than from anywhere else, and, until purchase, that copy is protected by proprietary access control. At the optimum time, the user can choose to rent further sessions, or instantly purchase full access to the game.

The advantage to game publishers is to provide another channel to sell games, with a new audience of people trialling games and renting. Downloads are much faster using Tangentix proprietary compression, reducing costs and increasing conversion/download completion. Sites can be localised geographically. GameSessions also offers Publishers control via a dashboard and can allow in-game interaction with players.

The attraction to Partners is converting ‘bricks to clicks’ sales, advertising, loyalty cards and enhanced features such as Facebook integration.

Opportunity

The Board have significant experience in this space and understand the financial and commercial models well. Tangentix are already getting traction with some of the larger publishers and partners in this space and the next twelve months will show if they can turn this into commercial success.

The video games market was $66bn in 2013 (excluding mobile devices), and by driving traffic to the GameSessions site through Partner sites, advertising (Google and Facebook), loyalty cards and TV videogame shows, Tangentix could make substantial sales with which it will take industry-standard percentages. 

Management / Team

Chris Deering, Chairman, was the president of Sony Computer Entertainment Europe (SCEE) for the successful launches of the PlayStation 1&2 and was non-executive Chairman of Codemasters.

Ed French: CEO, has run small companies previously and has a background as an early-stage VC.

Sir Ian Livingstone, NED, was Founder and Life President of Eidos, Co-Founder Games Workshop.

Paul Sheppard, CTO, has worked for Eidos and ITI online games programme.

David Reitman, Board Advisor, is ex VP of business development at Gaikai.

 
 
 
 
 

Parkwalk Fund Performance

Fund

Status

Gross NAV

Net NAV

UK Tech I Fully Invested 150.1% 191.8%
UK Tech II Fully Invested 228.8% 328.4%
UK Tech III Fully Invested 89.4% 110.4%
UK Tech IV Fully Invested 103.2% 135.4%
UK Tech V Investing - -
University of Cambridge Enterprise I Fully Invested 146.5% 188.1%
University of Cambridge Enterprise II Investing - -
University of Oxford Isis I Investing - -
Parkwalk Opportunities Evergreen n/a n/a

Valuations as of 10th September 2014. Net NAV includes income tax relief and fees on investment

Parkwalk’s current portfolio consists of 29 companies, which have raised in excess of £250m of funding between them since 2010 and over 600 patents protect their technology and processes.
Overall, Funds I-IV’s portfolio comprises of 9% Series ‘A’, 33% Series ‘B’, 25% Pre-IPO and 33% AIM listed.  

Past performance is no guide to future performance. The price of a fund can fall as well as rise. Investors may receive back less than originally invested.

 
 
 
 
 

Parkwalk Funds Update

Our evergreen Opportunities EIS Fund is open to new investors.

The University of Cambridge Enterprise Fund III is now oversubscribed and has closed to investors.

The University of Oxford Isis Fund I has closed its first two investments and the balance of the Fund is now committed. We expect to launch the University of Oxford Isis Fund II later this year.

Please contact funds@parkwalkadvisors.com or reply to this email if you would like further information on any of our funds.