The SidebySide Partnership, the London venture capital firm founded by technology veteran John Bailye (pictured above), has launched a technology EIS fund to support “scale-up” businesses.
Bailye told IFA Magazine that The SBS Later Stage EIS Fund will not charge performance fees until investors have made their money back and an extra 60% on top – a market-leading threshold.
What’s more, the fund will hold a maximum of just eight companies at any one time to enable the team to provide close support to management.
Bailye said: “Our name reflects our investment strategy – we’ll be working right alongside our investee companies. This is not a case of just air-dropping money and moving on, hence why we’re confident enough to have a market-leading performance fee threshold.”
“These are companies that can already stand on their feet but that have the potential to take off. All they need is access to specialist management skills and the right networks.”
The fund is targeting a return of 3.7x, net of all fees. The firm said it is committed to transparency and so will show portfolio companies’ yearly business plans, approved budgets and results versus targets. Its portfolio will be independently reviewed by Hardman & Co each year.
Bailye has a wealth of experience including founding and growing software company Dendrite International from start-up to a public company with global operations. The business sold for $800m in 2007.
Bailye also led the takeover of packaging equipment company Systech in 2014, altering the company’s commercial offering to specialise in production line management software. The company subsequently trebled its revenue to $64m in just three years. In addition, he is a sponsor and co-founder of the New Jersey Technological Council, which acts as an exchange for entrepreneur ideas and experiences.
The SidebySide Partnership aims to raise a total of £12m in 2019 and £20m in 2020. The first round of fundraising closes on 5th of April 2019. It will invest in companies in tranches, as and when they require financial support. Investments will qualify for the full range of EIS tax reliefs.