www.edge.uk.com Issue 20: November 2017

Edge InvestmentsCreate. Invest. Grow.

EDGE INVESTMENTS BACKS GAME-CHANGING DIGITAL TELEVISION

RIGHTS PLATFORM TRXI N early October 2017, Edge

Investments announced itwas investing in TRX, an onlinedeal-making platform for TVrights licensing.

Founded in 2014 by formerRDF Media founders and ZodiakMedia executives, brothersDavid and Matthew Frank, TRXis bringing establishedmarketplace technology to theglobal secondary TV rightsexport market, estimated to beworth in excess of $5bn perannum.

TRX enables TV programmebuyers to search for content,access instant rightsavailabilities, negotiate a dealand sign the contract entirely

IN August, Edge Investmentsannounced the promotion of

Steve Carle to the role of ChiefInvestment Officer for EdgePerformance VCT.

Steve joined Edge in 2015 asInvestment Director. Since joining,Steve has combined managingEdge Performance VCT portfolio’swith investing from Edge CreativeEnterprise Fund.

Steve is a director at our largestinvestment Coolabi, and alsorepresents Edge’s interests inIntent HQ and deltaDNA.

IN August, Terry Back joined theboard of Edge Performance VCT.

Terry is a well-respected mediaasset specialist and former Partner-in-Charge of Grant Thornton’s Mediaand Entertainment sector group,which he founded in 1994. Havingstepped down from his full-time roleat Grant Thornton, he remains aconsultant to Grant Thornton UK andGT International and is a consultant tothe wider media industry.

EDGE INVESTMENT TEAMBOOSTED BY PROMOTION

David Frank,Executive Chairman, TRX

online, a 21st centurytechnology enhancingtransactions in this marketwhich have historicallyhappened offline and person toperson, leading to long dealtimes and operationalinefficiencies.

Edge has invested £2m for aminority stake. Previously TRXreceived £2m of funding fromSky Ventures and £7m frombackers including its founders, a

number of private investors andthe Channel 4 Growth fund.

Swiftly following news of ourinvestment, TRX was able toannounce an agreement withBBC Worldwide, the commercialarm of the BBC, to pilot TRXwith international buyers overthe coming year: this is asignificant endorsement of theTRX platform from one of theworld's biggest televisioncontent distributors.

Edge Performance VCT appointsnew media specialist director

PORTFOLIO UPDATE - NEWSFLAREEdge Out and About

Steve Carle @ Westminster Media Forum Keynote Seminar 2nd November

Joanna Smith @ BVCA Raising Series A Forum 6th November

David Fisher @ OTT World Summit 15th November

David Glick @ Creative Business Cup Global Finals 15th - 16th November

David Fisher @ Moore Stephens Event: Digital Media '18: Show me the money 22nd November

David Glick @ Westminster Media Forum Keynote Seminar 28th November

Joanna Smith @ TMT Finance - Media Leaders Summit 2017 30th November

Coutts Media Banking Christmas Reception 11th December

Hannah Williamson @ Christmas networking soirée with Funders 12th December

Creative Industries Federation event 9th January 2018

Westminster Media Forum Keynote Seminar 27th March 2018

Good commercial progress,staffing up, new California office.

EDGE KEY CONTACTS ABOUT

Edge Investments is one of the UK’s mostdynamic and innovative specialist investorsin the creative industries. Since its launchin 2006 it has raised approaching £200m.

David GlickCEO

Steve CarleCIO

David FisherInvestment Director

For more information visitwww.edge.uk.comJoanna Smith

Investment ManagerKen OkoroaforCFO

FOLLOWING the consolidationof all of Edge Performance

VCT’s “planned exit” shareclasses into a single enlarged IShare Fund in September 2016,to sit alongside the “evergreen”H Share Fund, the investmentmanagement terms were alsoconsolidated so as to place themanagement of the H and IShare classes on a coterminousbasis.

Edge Performance VCT –New PerformanceIncentive

THE Board of Edge PerformanceVCT has previously informed

shareholders of its intention toremove the carried interest in theEdge Performance VCT I Share Fund,signalling its intention to implementan alternative scheme whichbalances the expectations of bothinvestors and managers andincentivises management to deliveran optimum performance for Ishareholders. The Board has beentaking external professional adviceon this and expects to publish detailsahead of next year's annual meeting.

Edge Performance VCT- Share and investmentmanagement termconsolidation

NEWS has changed! Videos shotby everyday people are being

used in news bulletins,documentaries, entertainmentshows and on websites.

Newsflare believes in the value ofvideo to tell richer, more compellingstories that would otherwise gountold.

Newsflare is where the world’smedia come to buy user generatedvideo, selling viral video stories andbreaking news videos to global mediaand news organisations every day.

Building on the solid performanceof their previously small but highlyeffective team, co-founders JonCornwell and Bevan Thomas havetaken on a number of new hires forsenior roles across the business:

Preeya Naul, joined as Director ofVideo in August from James Grant tolead video supply

David Hickey, joined in Septemberfrom the Associated Press to lead thenews desk

Jess Townsend, joined in Marchfrom Getty to drive video licensing toad agencies and brands.

Dave Young, joined in June to

develop and grow Newsflare’s owned& operated channels (on Facebookand YouTube).

Rob Crossen, joined in June todrive revenue from both licensingand ad revenue partners.

_____

LOS ANGELES OFFICEBoosted by the successful

investment in the company by Edgein December 2016, Newsflare haspassed a major milestone this yearby realising its vision of establishingitself in the U.S. market. In AugustNewsflare Inc. was incorporated inDelaware (US) with license to tradein California and the State of NewYork. The team is now working hardto get the new office up and runningin Los Angeles, the heart of theglobal media and entertainmentindustry; they already have a numberof the key advisors in place as theyswitch their recruitment focus fromthe UK to the US. This is anencouraging demonstration of UKinnovation leading the way and beingsuccessfully exported to the US.

EDGE’S team has been busyhosting an encouraging AGM

for Edge Performance VCT andorganising an insightful annualpartner’s meeting for EdgeCreative Enterprise Fund. Teammembers have participated at theChildren’s Media Conference, aWestminster Media Forum KeynoteSeminar looking at Brexit and theUK film and TV industry andattended MIPCOM, the annual

gathering of the world’s mostinfluential TV industry players formeetings, screenings andconferences.

The investment team will beattending and speaking at thefollowing key industry events in thecoming months, seeking newopportunities for our investors andensuring Edge’s name is always partof the conversation throughout thecreative industries.

audioBoom, the spoken word audioon-demand platform, celebrated ahuge 6 months, reporting 329%revenue growth over its third quarterin comparison to last year, withrevenues increasing 32% over thesecond quarter of the currentfinancial year.

Nearly 90m people listened to a‘Boom’ in August and this alreadyincredible number of users continuesto grow month on month.

Both public and private capital isrealising the growth and globalpotential of podcasting, an industry inwhich audioBoom is already a keyplayer, and this clearly bodes very wellfor the company’s future.

IT has been a very promising 6months for Coolabi across a

number of its family entertainmentbrands.

The group successfully reclaimedAmerican SVOD rights to Clangersand brought the first series of the hitpre-school show to Netflix in the USin March. Meanwhile the show - withSeries 2 now beginning to bebroadcast - has continued to be ahuge rating success for BBC,consistently rating in the top 3 showson Cbeebies.

Scream Street, the animatedseries based on the books of thesame name by Tommy Donbavandand produced by Coolabi, has beensuccessfully licensed to RAI in Italy,and continues to be a significantratings success for CBBC.

Poppy Cat series II has been re-dubbed and launched on Milkshake(Channel 5) in July – at launch SarahMuller, Head of Children’s Channel5, noted that “readers around theworld have loved the Poppy Catbooks and we are sure that theseries will be welcomed warmly byour viewers.”

Harper Collins US has

commissioned a new six book seriesof Warriors titles – the seventh intotal, giving strong visibility on newbook launches through to 2021.Further deals have also been signedin China, Germany and Norway,demonstrating that UK creativitycontinues to compete strongly in theglobal marketplace.

The video game of Beast Quest,the best-selling series of children’sfantasy novels, continues to growand has now achieved more than10m downloads to date. A deal for aconsole game of the series was alsoconcluded, with an expected launchdate in March 2018. This gamerepresents a completely new way forfans to engage with this one-of-a-kind universe, and we’re thrilled tosee it come to life.

COOLABI GROUP MIRRIAD

AUDIOBOOM ANTIDOTE PRODUCTIONS

AUDIOBOOM REPORTS 329% REVENUE GROWTH

Edge Investmentsbacks rising indieAntidote Productions

MIRRIAD SIGNS DEAL WITHYOUKU TUDOU, OWNED BYALIBABA

In June this year, Edge took a stake inAntidote Productions, an independentTV production company based inLondon, co-founded by BAFTA andRTS award-winning filmmaker LauraJones, and Leila Monks, an industryexpert with a proven track record inco-productions, presales and sales.

Antidote Productions has areputation for smart, and distinctiveprogramming, specialising in talent-based and access-driven programmesworking with established names, newup and coming faces and major

Mirriad’s patented computer andAcademy Award-winning visiontechnology creates a new standard inadvertising where a brandintegration is an affordable, scalablead unit running in multiple pieces ofcontent. The resulting ads areseamless, authentic, and workacross all screens.

Mirriad has deals with major USstudios and has worked with topbroadcasters in over 20 countries. It’salso the chosen native ad solution forVevo, the world’s leading all-premiummusic video and entertainmentplatform, whose videos generate over5.5 billion monthly viewsglobally.  Mirriad has offices in London,New York, Mumbai and Shanghai.

corporations and institutions.

International series and factualformats are a core focus, leveragingAntidote’s knowledge of what sellsboth to the major UK broadcasters andinternationally to the USA, Canada,Australia and Pan Asia.

Antidote has fast built a reputationfor creating critically acclaimed showssuch as its powerful and multipleaward-nominated documentary“Professor Green: Suicide and Me”,National Geographic’s “YouTubeRevolution”, which featured access toGoogle, and “Breaking into Prison”,one of the highest rating short-formseries on BBC iPlayer.

More recently, Antidote produced BBC Three’s “Olly Alexander: Growing up Gay”. Described by the Radio Times as “a powerful watch” the show went on to became one of the most popular programmes in the channel’s “Gay Brittania” season, reaching 1.6m viewers when it was repeated on BBC One. Meanwhile, Antidote’s popular BBC Three short “Girl Gangs” is expected to hit 1m viewers on YouTube soon.

Edge’s investment will help drive Antidote towards becoming one of the UK’s top factual, independent production companies’.

Mirriad is now working directly withChinese tech giant Alibaba after itinitially struck a deal with Chinesevideo streaming platform YoukuTudou, which was bought by the retailgiant two years ago.

Viewers of China’s Youku Tudouvideo streaming platform will soon bewatching programming with brandssuperimposed into programmes,digitally inserted or superimposedinto episodes by Mirriad.

Edge Investments 1 Marylebone High Street London W1U 4LZ Telephone: 020 7317 1300 www.edge.uk.com Email: info@edge.uk.com

This document has been approved by Edge Investments Limited (the “Company”), a company authorised under the Financial Services and Markets Act 2000This document does not constitute or form, and should not be construed as constituting or forming, part of any offer or invitation to sell, or any solicitation of any offer to purchase or

subscribe for, any securities in EdgePerformance VCT plc or any other bodycorporate or fund, or an invitation orinducement to engage in investment activityunder section 21 of the Financial Services andMarkets Act 2000, nor shall it or any part of itform the basis of or be relied on in connectionwith any contract therefor.

No reliance may be placed for any purposewhatsoever on the information contained in thisdocument or on assumptions made as to itscompleteness. Some of the statements in thedocument represent the personal opinions of thedirectors of the Company. No representation orwarranty, express or implied, is given by theCompany, any of its subsidiaries or associated

companies or any of their respective advisers,officers, employees or agents, as to the accuracy,fairness or completeness of the information,opinions or statements based on the belief of thedirectors of the Company contained in thisdocument or expressed in the document and noliability is accepted for any such information oropinions or statements based on the belief of the

directors of the Company (which should not berelied upon) or for any loss howsoever arising,directly or indirectly, from any use of thisdocument or its contents or informationexpressed in the document.Any decision to invest in Edge Performance VCTshould be based upon consideration of itsprospectus dated 8 November 2013 as a whole.

UK CREATIVE INDUSTRIES SEESCONTINUED GROWTH

David Glick, Chief Executive and Founder Edge

Sir Peter Bazalgette

David Glick, Chief Executive and Founder Edge, looks at therecent Independent Review ofthe Creative Industries led bySir Peter Bazalgette, Chairmanof ITV and friend of Edge.

Sir Peter Bazalgette, chairman of ITV andformer Chair of Arts Council England  played animportant role in helping to develop theindependent TV production sector which we seethriving today in the United Kingdom. He thenwent on to champion our creative industries,helping them compete on a global scale.

The Department for Digital, Culture, Mediaand Sport recently commissioned Sir Peter tolead an independent review of the CreativeIndustries outlining some keyrecommendations for how the sector cancontinue to underpin the UK’s future economicgrowth.

The Creative Industries in the UK are nowgrowing nearly three times as fast as the widereconomy and are expected to contribute a millionnew jobs by 2030. In order for this staggeringperformance to continue in an ever volatile widereconomy, the report (available here -https://www.gov.uk/government/publications/independent-review-of-the-creative-industries)proposes that we have to focus on removingbarriers to accessing finance, creating tradeopportunities and ensuring we can continue toattract a core base of young and innovative talentto the industry.

Since its inception, Edge has worked onremoving the barriers to finance which continueto afflict the sector. We look to provide a bridgebetween the investment and creative worlds: weunderstand creative people and businesses, theparticular challenges they face and the uniqueopportunities open to them. Our investmentteam is drawn from a wide range of professional

disciplines and our board of directors sourcedfrom the highest levels of entertainment, thecreative industries and finance.

Sir Peter notes just how highly mobile thisindustry is – representing both the risk and theopportunity. Get it wrong and swathes of thishighly talented workforce could relocate to thelikes of Canada, the US and Germany, whosegovernments are working hard to createattractive conditions for growth. Get it right bynurturing this regional talent base, and we cancontinue to export their innovative and creativeideas around the globe. This is why we areparticularly excited by Edge’s latest investmentin The RightsXchange (TRX), which just reachedan agreement with BBC Worldwide to pilot itson-line deal making tool for TV rights licensingwith international buyers over the coming year.For the first time ever, using TRX, buyers will beable to negotiate and agree all key deal termswith BBC Worldwide sales executives on-lineassisting the global outreach of valuable Britishcontent.

Sir Peter’s report emphasises how thecreative industries are a true UK success story– and an area where Britain continues to excel.This sector currently contributes nearly £90bnto the UK economy, we must ensure it is rightlyprioritised going into future Brexit negotiations.If we put the right policies in place, then we cancontinue to accelerate the excellent growthwe’ve already seen in the sector and furthercement our reputation as leaders in the field.

In this age of uncertainty, developing arenewed focus on our nation's creativefoundations is our best way of showing strengthto the wider international community.

We at Edge applaud Sir Peter for thisimportant piece of work.

David Glick