SyndicateRoom Launches New Growth Fund for Early-Stage EIS Opportunities

Author

UK Business Angels Association

04 December 2017

SyndicateRoom announced the broadening of its fund strategy with the launch of the Growth Fund, an active Enterprise Investment Scheme (EIS) fund designed to invest in select best-performing businesses that make up the platform’s growing portfolio. The new fund will sit alongside Fund Twenty8, reportedly the industry’s first and only passive fund for early-stage EIS opportunities. The two funds together bring more choice for private investors searching for returns in a low-yield economic environment, by offering both an active and passive approach into companies at different stages of their growth cycle.

“With a fast-growing group of more than 110 of the UK’s most trailblazing companies, we’re seeing huge potential from SyndicateRoom’s portfolio. However, many of these companies tend to go to top-tier VCs for their follow-on funding rounds. It’s fantastic to see them succeed, but it’s also frustrating because private investors are being excluded from these exciting later-stage investment opportunities,” indicated SyndicateRoom CEO and Co-founder Gonçalo de Vasconcelos. “SyndicateRoom’s Growth Fund has been designed to ensure that members don’t miss out on these deals. The recent announcement by the Chancellor regarding EIS and VCT funds will result in an increase of EIS private capital being channelled to high-growth companies – which are exactly the kinds of companies that we welcome to the SyndicateRoom platform.”

‘SyndicateRoom’s Growth Fund has been designed to ensure that members don’t miss out on these deals,’ SyndicateRoom CEO and Co-founder Gonçalo de Vasconcelos.

With its highly focused, active investment strategy, the Growth Fund aims to bring sophisticated and high-net-worth investors into series A and B raises by SyndicateRoom’s portfolio companies. Typically the preserve of institutional investors, investors have to date been excluded from these deals.

“SyndicateRoom’s initiative to offer continued financial support to the best-performing portfolio companies as they scale their growth is one of the most inspired ideas I’ve seen from an investment platform,” added Richard Castle, Finance Director, Recycling Technologies (SyndicateRoom portfolio company). “Since raising funds with SyndicateRoom three years ago, the team has grown to know us well and has a solid grasp of our performance. For a larger-scale, follow-on investment round, Growth Fund would provide simplicity, be well aligned and make a lot of sense.”

According to the platform, SyndicateRoom will use four years’ worth of established relationships and platform data to identify these opportunities. Like Fund Twenty8, the Growth Fund will target a return of 20%+ IRR including EIS tax relief.

“Investors want choice – and we have a proven track record in providing that,” expressed SyndicateRoom CIO James Sore. “By offering a choice of funds, catering to both passive and active investors, from early-stage to later-stage growth, we’re offering further diversification for the private investor community.”

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