The networking group First Tuesday is to be bought by a consortium
of members from its present owners, an Israeli venture capital
fund, for £1 million. Current owners Yazam are thought to have paid
£33 million for First Tuesday last year.
Previous attempts by Yazam to sell the group for a higher
price failed, at least in part because of resistance from city
representatives without whose support the business model could not
continue in its present form. There were recent reports that the
brand name alone might be sold to conference organisers.
According to media reports, the group has been sold to eleven of
the network’s city representatives. First Tuesday has over 100,000
members world wide.
Reade Fahs, CEO of Yazam, said: “First Tuesday will continue to
be a key source in the driving of the world wide internet
economy.”
First Tuesday began in a London Soho bar in October 1998 with
four friends informally putting entrepreneurs in contact with
venture capitalists, lawyers and other advisers. Now First
Tuesday’s matchmaking events take place in 85 countries, with
entrepreneurs being introduced to potential investors and others
such as technology, knowledge and service providers.
First Tuesday charges a fee for each introduction that leads to
an investment. The success fee is charged at 2% of the total
investment amount. Additional revenue is made through
sponsorsip.
