Dragons Den star, Simon Woodroffe, started Yo! Sushi in 1997 and in 2003 raised £6.5million in venture capital from Primary Capital, billed as the first name in management buy outs. Even better Woodroffe was able to opt out of day-to-day management and still collect a royalty of 1pc of UK turnover in perpetuity. Woodruffe ended up with 22% and Primary with 78%. The lesson: get the business started and on a firm footing and bring in the VCs on your own terms. This deal is similar to the Cambridge Cluster company, Owlestone, where one VC takes control and runs the business and decides when to sell. There is no report of the management receiving options.
Sold to Quilvest which is backed by one of Argentina’s wealthiest families for £50million.
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