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Life Sciences Investor Briefing Webcast

The fund’s investment strategy is to invest in EIS Qualifying companies involved in the development, commercialisation and sale of innovative technologies or using them to gain a competitive advantage.

Why Invest

Positives

Strategy: Exposure to a small portfolio of technology companies co-investing with Business Angels.

Issues

Track record: Only a small number of exits to date, mostly predating the EIS fund, but the results so far look promising.

The Investment Manager

Positives

Team: Diverse range of experience in team, with clear strategy and good support from its Angel network.

Issues

Company size: The team is small, and this may act as a slight constraint, although it has recently expanded and has plans to recruit further.

 

Nuts & Bolts

  • Duration: The fund is evergreen, with closings around financial year-end or when sufficient investments are made.
  • Diversification: The manager expects to provide at least six equal investments for each closing.
  • Valuation: Usually changes at next financing or on write-down.

 

Specific Issues

  • Fees: Combination of direct fees and company charges. Four years of annual fees are deducted upfront.
  • Performance fee: Charged at 20% on aggregate returns over 120% of subscription, but threshold increased by 40% if exit within three years.

 

Risks

  • Target returns: The benchmark average IRR of 15% (roughly doubling the gross investment in five years) suggests a medium- to high-risk investment strategy.
  • Companies: Supplying risk capital to early-stage technology companies at the start of commercialisation. There will be a spread of company returns as the successful ones will do very well, but those who fail may do so completely.
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