Summary: The fund’s investment strategy is to invest in a portfolio of EIS qualifying technology companies, with a focus on B2B businesses built on innovation in energy & energy efficiency, industrial high-technology, resource efficiency, smart cities and connected transport.

Why Invest

Positives

Strategy: Exposure to a portfolio of technology companies that focus on hardware and hardware-enabling software and applications.

Issues

Past performance: The fund is new and has no past performance, though we note that the team has one exit from other investments.

 

The Investment Advisor

Positives

Team: The EMV team has significant experience of building new businesses and making Angel / Venture Capital investments.

Issues

Track record: Although EMV has been making venture capital investments since 2014, this is their first EIS fund.

 

Nuts & Bolts

  • Offer period: The first closing date will be 30 March 2018, or at manager discretion.
  • Diversification: The aim is to invest in 6-8 companies.
  • Valuation: There will be little or no change in the valuation except at further fundings, and investors will receive regular updates on progress.

 

Specific Issues

  • Fees: Mixture of direct fees and charged via the investee companies.
  • Performance fee: Tiered: 20% on gains between £1.10 and £3 for each £1 invested on a per company basis. Above this, the fee is 30% of the investor share of the return.

 

Risks

  • Target returns: The target return of tripling invested capital over 6-8 years suggests a higher risk strategy within the EIS area and is appropriate for the strategy, though investors should note the slightly longer term than some other funds target.
  • Companies: Individual investments will be high risk, with the return profile likely to be skewed. Those that do well will give a larger than target return but the failures may return little or nothing.