The Bookseller.com

29th August 2008

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Small publishers' fund cut

24.07.08 Catherine Neilan

Plans for millionaire Roger Shashoua's €20m (£15.7m) venture capital fund to invest in a number of small UK-based publishers have been put on hold as the outlook for the country's economy becomes increasingly negative. Legend Press, which was expected to receive backing until flotation on the London Stock Exchange, will no longer receive investment in the company as a whole.

Shashoua will continue to financially assist specific projects with Legend—including the forthcoming publication of a book co-written by the fund's executive director Jonathan Reuvid—it would not be investing in the publishing company's equity, Reuvid confirmed. He said: "We may help them to get near [to being able to list], but our thinking has changed, really as a result of the collapse of the UK economy. We are very gloomy on the outlook, and there will be no more investments in the UK for the time being." Reuvid declined to comment on what investments outside of the UK the fund was considering.

The book, which Shashoua is backing fully, focuses on the Moroccan economy. No publication date has been set yet. "If it is successful, it may evolve into a joint venture to develop a series of similar publications relating to emerging markets," said Reuvid.

Legend founder and m.d Tom Chalmers said the investment already received from Shashoua had been "very helpful" for building the publisher's 2008 programme, and had helped publish one book so far.

In January it was announced Legend was to be the first recipient of some of the money being invested in small UK publishers by the fund, which was set up by Shashoua in October 2007. Shashoua, who was co-owner of Duckworth Press 15 years ago, intended to invest between £1m and £2m in small publishers in return for a stake of up to 50%.

Chalmers said: "The assistance at the time was excellent, as it would be for any small business. We enjoyed working with them very much."

Legend Press small publishers Roger Shashoua Catherine Neilan