Rowland's Jellybook aims to cash in on tech bubble.(Business)

Byline: Simon Duke

THE SON of controversial Tory party donor David 'Spotty' Rowland has launched a new investment firm targeting the booming online social network industry.

Jonathan Rowland (pictured) is hoping to grab onto the coat tails of Facebook and Twitter with his Jellybook venture, which will buy stakes in up-and-coming social media firms.

The cash shell will raise around [pounds sterling]3m when its shares begin trading next Friday, although it could tap investors for more in the future if larger deals materialise.

The move comes amid concerns that a bubble is inflating in the internet sector, which could result in a repeat of the technology crash of a decade ago.

Just days ago online voucher company Groupon took aim at a US stock market float expected to value the lossmaking two-and-a-half-yearold firm at more than [pounds sterling]15bn.

But Rowland is no stranger to the wild swings of investing in the online arena after cashing in handsomely from the original dotcom fervour.

At the age of 24 he floated Jellyworks on the London stock market for [pounds sterling]10m. Its value briefly soared above [pounds sterling]200m before it was swallowed up by Shore Capital for [pounds sterling]60m the following year.

The sale netted Rowland an estimated [pounds sterling]42m windfall but Shore had to write off much of its investment following the subsequent crash.

In his new internet foray, Rowland will be joined by other blasts from the past including Julie Meyer, founder of the First Tuesday network for budding entrepreneurs.

Since the heady dotcom days, Rowland has frequently tried but failed to replicate his Jellyworks coup.

In 2005, he launched the Azman investment vehicle which aimed to tap into the then rampant mining sector.

The group subsequently converted into an internet telephone venture following a reverse takeover. Rowland then floated his Nettworx vehicle, which raised more than [pounds sterling]9m to invest in phone technology. After making one small investment, the group was wound up in 2009.

Rowland is currently chief executive of Banque Havilland - the Luxembourg wing of collapsed Icelandic bank Kaupthing which he and his father bought two years ago.

Banque Havilland will act as the underwriter for the Jellybook float. The private bank was recently raided by Serious Fraud Office investigators looking into the Kaupthing scandal.

David Rowland declined to take up the post of Conservative Party treasurer last summer in the wake of allegations about his business dealings and private life.

CASTING HIS NET

JellyWorks: Sold for [pounds sterling]42m profit

Nettworx: Wound up

Azman: Taken over

Banque Havilland: Bought Luxembourg wing of Kaupthing in 2009