About the Better Ventures EIS Fund
The Better Ventures EIS Fund invests across sectors – including engineering, fintech, media and entertainment, lifestyle brands, and food and beverage, with an emphasis on those in which its team has expertise, and those in which the UK is a leader. The fund is managed by Sapphire Capital Partners and advised by Vala Capital Partners. Vala emphasises a close working relationship with company management teams, and targets returns of 2.5x.
Summary
| Fund Manager: | Sapphire Capital Partners |
| Tax Efficiency: | EIS/SEIS |
| Sector Focus: | Multi-sector |
| Stage Focus: | Early-stage |
| Target Portfolio Size: | 8-12 companies |
| Minimum Subscription: | £20,000 |
| Closing Date: | Evergreen with two annual closings. |
| Website: | Learn more about the Better Ventures EIS Fund |
Fees
| Full initial fee: | nil |
| Annual management fee: | 1.5%+VAT |
| Administration fee | nil |
| Dealing fee: | nil |
| Performance fee: | 20% |
Investee company fees
| Initial fee: | 5% |
Pros & Cons
Pro: Gives investors a greater tax-efficient allowance thanks to its KIC focus.
Con: Portfolio concentration.
How does SyndicateRoom's Access EIS Fund compare?
By comparison, SyndicateRoom's Access EIS fund builds investors a large portfolio of 50+ companies across all sectors, co-investing with experienced angel investors (average IRR of 42%). Because venture capital returns follow a power law distribution (see our report on this), it is better to try and build large portfolios of quality companies, rather than trying to pick a small group, because startups have a high likelihood of failure regardless of their potential. With a larger portfolio, each individual failure represents a smaller percentage of your overall holding.
Our model is based on our proprietary analysis of the UK startup market which showed that, on average, the market as a whole grows by 28% each year. It's not possible to invest in the entire market, but with large portfolios and access to the most promising deals, investors can optimise their return potential (see our white paper).
We gain access to the most promising new startups by co-investing with the UK's most successful angel investors, who meet our strict performance and sector expertise criteria, while providing access to new businesses at very early stages and on exactly the same terms.
Our data-driven approach aims to work around the limitations of a single fund manager attempting to pick winners.
Our minimum investment is £5,000.
| Fund Manager: | SyndicateRoom |
| Tax Efficiency: | EIS |
| Sector Focus: | Sector Agnostic |
| Stage Focus: | Early-stage |
| Target Portfolio Size: | 50+ companies |
| Minimum Subscription: | £5,000 |
| Closing Date: | Evergreen |
| Website: | Learn more about the Access EIS Fund |
Are you the fund manager? Email tom@syndicateroom.com with any comments or amends.