CGU, the U.K.’s largest insurer, has agreed to establish an investment fund in partnership with the venture capital firm Quester Group. CGU will provide the funds, up to £20 million ($32 million) initially, to look for and invest in e-commerce start-ups, which conduct activities relevant to CGU’s business.
According to reports the fund will operate as a U.K. partnership for 10 years. Managed by Quester, it plans on making between 8 and 12 investments over that period of time. Initially the capital provided would be between £1 and £1.5 million ($1.59 million to $ 2.4 million), but additional investments may be made if warranted.
“This fund will complement our internal development by providing opportunities for CGU to invest in and build relationships with external companies that can further enhance our e-commerce capability, “CGU Executive Director Philip Twyman told Reuters News Service.
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