i2O is addressing the increasingly urgent problem of global water scarcity. The company was founded in 2005 and had raised funds from a group of angel investors to develop its system, which significantly reduces leakage in water distribution systems and improves monitoring and control.

In 2008 the company needed to raise further funds to finance its commercial roll out and the growth of the business in the UK and abroad. FirstCapital was appointed as exclusive financial advisers, following a recommendation from the company’s Chairman, who we had worked with previously.

At the start of the engagement, in reviewing the funding strategy and investment proposition, FirstCapital recommended that i2O make changes to its commercial model and expand its product development pipeline, which not only strengthened the fundamental business but also made it a more attractive proposition to potential investors.

FirstCapital also played a key role in setting and managing the expectations of i2O’s existing investors, and worked to ensure confidence in and support for the fundraising process. The process needed to be completed in a fairly tight timescale, especially given very difficult external market conditions at the time, and FirstCapital set out a clear timetable with milestones and managed this rigorously to ensure that the objectives and timescales were achieved.  FirstCapital took care of qualifying and approaching suitable venture capital funds, and in parallel, they worked closely with i2O’s management team to prepare for investor meetings and presentations, which included ensuring that any potential issues were identified and addressed in detail to avoid any delays.

A number of termsheets were received within the stated deadline, and FirstCapital assisted in negotiating with potential investors to achieve a deal that all parties were pleased with. The company successfully raised £4.2m from a syndicate led by Swarraton Partners, closing the fundraising in April 2009.

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Testimonials

“FirstCapital came highly recommended by our chairman who had worked with them previously and I was very impressed from the outset with their people and approach. They conducted a robust evaluation of i2O’s potential and their clear understanding of the needs and expectations of VCs resulted in us making key changes that not only strengthened the business for the longer-term but also made it a more attractive proposition to potential investors.

FirstCapital’s comprehensive approach meant that our shareholders could be confident that we got the best possible offers from the market – something we could not have achieved had we tried to keep the fundraising process in-house. All our objectives were achieved: not only was funding secured within a short timeframe but the price and terms negotiated by FirstCapital were excellent.”
Adam Kingdon, co-founder and Managing Director i2O Water

“I had already worked very successfully with First Capital on a previous fundraising opportunity.  Once again, I continue to be impressed with the business acumen and commercial judgement of their people, which has enabled i2O to balance the differing requirements of all our stakeholders and achieve an excellent overall result.”
Andy Phillipps, Chairman, i2O Water