In the run-up to TYE 2020, we take a look at a few EIS funds which you may find of interest
The Vala EIS Portfolio was created to invest in companies run by skilled entrepreneurs, who have the potential to build exceptional businesses.
Vala Capital has invested more than £25m of its own capital into early-stage businesses and raised more than £45m from other investors for those companies.
Investment summary
The Vala EIS Portfolio will build a portfolio of shares in small companies with big plans for growth, chosen by an experienced group of entrepreneurial investors.
The Fund will invest across a range of sectors, including technology, engineering, fintech, media & entertainment, lifestyle brands and food & beverage.
Investment philosophy
At the heart of the Portfolio is a team of seasoned and successful entrepreneurs with decades of experience in industry and international finance.
Their hard work, and the tough lessons learned along the way, puts the Vala EIS Portfolio in a strong position to find and nurture investee companies, giving them the best possible chance of success. That experience has also shaped a set of values and beliefs that underpin the Portfolio.
The UK helps businesses thrive
The UK provides a good environment for start-up businesses to flourish. Technology has transformed almost every industry, creating possibilities for start-ups to become significant players or major multinationals in record time. The UK has so far created 60 unicorns – technology companies achieving valuations of more than $1 billion.
Ethics
Acting ethically isn’t a cost to business or a barrier to success. On the contrary, Vala believe an ethical core is a critical element of every great company. Ethical decision making, practiced at all levels of a company, creates more sustainable business practices, better financial outcomes, and stronger organisations.
Size of investments
Each investment round (i.e. the capital committed to each company by the Vala EIS Portfolio on a particular occasion) is likely to be between £200,000 and £2,000,000, but it could vary.
Minimum investor subscription is £25,000.
Target return
Vala hope to return to investors 2x the amount they invest in the Fund, net of fees. This target does not include the value of any tax reliefs claimed in connection with investments. It’s important to note that the returns from this sort of investing are hard to predict. The performance of each company will vary, and the bulk of returns will probably come from the sale of the two or three most successful companies in the portfolio.
The Vala EIS Portfolio is evergreen – always open to subscriptions.
The below video features a number of Vala’s investee companies but its main objective is to introduce the entrepreneurs behind Vala and why they are uniquely placed to be making the decisions about investors’ capital and mentoring the investees.
It’s all about risk management in the end: who better to choose and mentor the companies than a group of serial, successful entrepreneurs who over a 20+ year period have conceptualised, built, invested in and ultimately exited many SMEs, generating an aggregate 3x return on capital?
This team continues to invest their own capital into these businesses and have “skin in the game” alongside the investors.
The unique approach to fees means that risk is more fairly shouldered by the Vala team and less by the investors – Vala only charge 6%, which is charged to the investee companies.
Vala will be fully deploying capital before TYE 2020
To find out more about the Vala EIS Portfolio click here
