"Attractive returns expected," says CEO

Blue Star Capital PLC, the AIM-listed company which provides seed capital for early stage companies, said it has made an investment in software company Izimi of £150,000, as part of a total investment of £575,000, through a convertible loan.

Blue Star said the convertible loan carries an annual interest rate of 7%, and can be converted into ordinary shares of the company, which represent a 13% stake at the time of conversion, at any time up to 31 December 2007.

The company said Izimi is a web-based software company that is currently developing a peer to peer (P2P) social networking computer application. Its applications are currently in a beta-testing phase, with an expected launch in early 2007.

As such, Izimi is not yet revenue generating and since its incorporation on September 14 last year has incurred development losses of £266,460.

Chief executive Haresh Kanabar said: 'Our proposed investment in Izimi, with its planned blend of revenue generating channels including display advertising and commission on transactions, is a great fit with Blue Star's strategic intent, of investing in early-stage companies that have significant potential capital growth. Our investment in Izimi's proprietary technology will, I believe, generate attractive returns.'

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peer to peer, P2P, social networking, user generated content, instant messaging, VoIP, socialising, MSN Messenger, Skype, Yahoo Messenger, ICQ, Google Talk.