Agincourt, a $200 million (€196 million) Irish venture capital fund set up to target developing Irish technology companies, has completed its first investment here. The company is to invest $4.3 million in a substantial minority shareholding in Sepro Telecom International.

The stake is believed to be worth between 20 per cent and 35 per cent of Sepro equity.

Dundrum-based Sepro specialises in telecommunications and e-commerce billing software.

Due to rapid advances in technology, telecommunications companies are finding it increasingly difficult to upgrade their traditional billing systems to accommodate the types of charges new services require.

Sepro has developed software which can manage complex services, including voice and data content, second and third generation mobile phone networks, and e-commerce transactions. This will allow telecommunications companies provide customers with detailed billing for emerging services including specialised content and video on demand.

Sepro is about to launch its commercial strategy primarily into the US market. It currently has a $1 million contract with a mobile telephone operator in the US, National Independent Billing. According to Sepro managing director, Mr Declan Ganter, the company expects to be profitable and generating $20 million in sales by March 2001. Sepro currently employs 38 people at its Dundrum premises.

"We have a sound and robust strategy to handle the product on a global basis. We need to find partners for the systems integration process, and this has already begun through a partnership we've formed with Unisys. We are now engaged in forming further relationships with other major players," Mr Ganter says.

Agincourt says it will shortly appoint a non-executive director to the Sepro board, and its investment will be used to expand Sepro's presence in the US market.

The strategy to take positions in small Irish technology companies and foster growth in US markets was key to Agincourt's charter when it launched last March. According to Mr Paul Kane, joint managing partner of Agincourt: "We have identified opportunities for substantial growth in the Irish market, and we plan to make two further investment announcements by mid-January."