At the time that we make our first investment into a SEIS qualifying company, we are already thinking about the longer term. We know that as the company gains traction in the its marketplace it will need more capital to grow make the most its new opportunities. And this will happen with every important step it takes.
The partners at Haatch have all created, grown and sold their own business. some have done it several times. It is this practical experience that we bring to all the companies we invest in. it is far more than just talking to a board position in a company. It is working with them, to identify and optimise every opportunity that comes along. it is passing on our experience, as and when it is needed.
In terms of finance, we now have three different funds. The SEIS fund, EIS fund and then the Follow On EIS fund, designed to support our portfolio companies as they grow. But even that is not sufficient funding on its own for growing successful companies, which is why we have forged relationships with other venture capital providers, that will also invest alongside us. We want nothing to limit the support that our portfolio companies need.
The Haatch Pedigree
At Haatch we have been successfully investing in small exciting companies since 2013. Initially it was individual investments, with our first EIS fund launched in 2018. It wasn’t until 2021 that we launched our first… and second SEIS funds. The first SEIS fund was filled up within 2 weeks, and the second also closed early because of high demand from investors. The reason is, we understand, that by then Haatch had an excellent reputation, with both entrepreneurs and investors, for making a significant difference to the companies we invest in. This is borne out by the fact that we are now receiving over 2000 business ideas to invest in every year. This means that we can be very selective in choosing the very best ideas, and make them work. Our Follow on fund was then launched at the end of 2021. It is because we can be so selective that we are targeting an average 10x return with both our SEIS and EIS finds, and 3-5x return on the Follow on Fund (lower than the others because the investment is at a later stage).
Aerocloud was an investment that we first made in June 2020, right in the middle of the pandemic. Our initial investment utilised both SIES and EIS wrappers. and was for £500,000.
Aerocloud offers a revolutionary intelligent airport management system, using predictive artificial intelligence to help airports plan gates and runway utilisation to increase their operational capacity, and ultimately their profitability. At a time when airports are trying to reduce cost, Aerocloud offers the perfect solution that is transformational for the aviation sector. The company’s SaaS approach is a fraction of the cost of traditional services, manages the whole customer experience, and helps the airport to respond to any delays, diversions or cancellations. As one airport manager said, ‘Aerocloud is our crystal ball’. The system is particularly valuable in the US, where customer experience is the most important yardstick of success.
Since our first investment, international and domestic flights have returned (cargo flights were always there), and demand for the system has rocketed. This has led to further funding needs to enable the expansion plans, which has come from EIS Fund and other investment partners.
Growth is continuing, not only in the US but also expanding into Europe, and we look forward to supporting Aerocloud as they became a global service provider to the aviation industry.
The Haatch Invitation
We would like to invite advisers and investors alike to join the exciting journey with our portfolio companies. With a choice of funds to suit different risk profiles. Secure in the knowledge that every company is receiving extraordinary guidance and support to help them have every chance of success.
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This article is included in our 2022 comprehensive annual EIS/SEIS report, which is now available to our Financial Adviser readers here