Out-Law / Your Daily Need-To-Know

First Tuesday is bought by members

16 Feb 2001, 12:00 am

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.