The fund backed by various UK banks invests in the fast-growing fancy dress company which has grown its revenues more than nine times in two years.

The former corporate venturing unit of media company Hubert Burda Media is joined by the former unit of publishing company Georg von Holtzbrinck Publishing, backing the online shop for designer furniture.

The state-backed Food and Environment Reseach Agency remains a shareholder in Forsite having taken a stake when the portfolio company was spun out from the UK's agriculature department in 2007.

A source close to the deal said ARM, which declined to comment, was unable to find other venture capital (VC) partners that were ready to help create Cognovo and in the end decided not to be the only funding source.

Clarkson was previously a director at venture capital firm Draper Fisher Jurvetson managing its DFJ Global Network.