Regardless of Brexit, these are exciting times for the EIS industry.
The sheer volume of opportunities is attracting more and more new funds to the market – and they are very welcome.
In most instances, although the fund might be new, the people involved are highly experienced and experts in their fields. Some have been investing in young companies for many years but are now offering a fund for the first time and are seeking support from the adviser market.
Hardman & Co’s New Entrant Network initiative has been created to smooth their path to market.
In this feature, we take the opportunity to showcase some of these new entrants and what they have to offer. We think you’ll be as impressed by their potential as we are.
Haatch Ventures is made up of a team of hands-on value creators. They have been there. Built scaled companies of their own and sold them. They use that knowledge, experience and network to accelerate the growth of their portfolio businesses via a “Smart Money” approach, providing support to enable digital transformation.
Over the last seven years the team has been investing, supporting and managing their own private and EIS fund portfolio of digital companies, hand selected through a world class deal pipeline.
Why is the deal pipeline so great? The answer lies in the vast amount of respect the digital world has for the founders – Kiddicare.com architect Scott Weavers-Wright, who sold the business to Morrisons in 2011 for £70m & has since sold another start up to Quotient Technologies (NYSE Listed), digital marketing expert Simon Penson (founder of Zazzle Media; sold to NYSE-listed IPG) and Mark Bennett (Director of Hardware Partnerships for Google) as well as respected technology expert Fred Soneya. Together the team is able to best support portfolio companies not just with cash, but with a vast wealth of start up scaling knowledge.
Now for the first time this expertise is being harnessed into an EIS Fund. To date the approach has produced market-leading returns. The current portfolio has average ROI of 5.60x based on the latest third party fund raising round for each company. Our target return on exit is 10x.
This has given us an enviable reputation as the go to early stage investors in digital disruption tech.