A famous Silicon Valley investor has launched a new UK venture capital fund

Tim Draper, one of the world's most prominent venture capital investors, has launched a new investment company in London.

In 1985, Draper founded the firm that would become Draper Fisher Jurvetson (DFJ), which has invested in companies like Skype, Twitter, Tesla, and Box.

The new "Draper Oakwood" fund will lead "royalty round" investments in predominantly UK and European growth companies in exchange for a share in future revenues.

Draper Oakwood said the "R-Round" investments won't require entrepreneurs to give up any equity or control in their business.

"We believe that many great companies will be well suited to utilise a non-debt, non-equity financial vehicle," said Draper in a statement that was shared with the media. "Draper Oakwood is breaking new ground, and we believe the economy will benefit from better liquidity and this alternative access to capital."

Although Draper has his name behind the company, he will not be the one leading it. That duty will fall to founder and CEO Aamer Sarfraz.

"Our principles are straightforward - provide capital which is entrepreneur-friendly, don't interfere in running other people's business, and don't dilute existing shareholders and management teams," said Sarfraz. "The UK needs more innovative sources of capital, beyond just old-fashioned equity and debt."