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 cities all over the world, 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.
In view of what Yazam described as “changing market conditions,” First Tuesday has cut its London head office staff from around 30 in November to just 8. On Monday, its Board of Directors announced that the company was to “institute immediate cost reductions, whilst it continues to examine all strategic options for the business.”
According to FT.com, the network’s city representatives, almost all of whom work voluntarily, have approached Yazam with a view to taking control of the company.