The Later Stage EIS Fund

Key elements of the EIS fund

The Side by Side Partnership Later Stage EIS Fund invests in companies where there is evidence of a strong customer acceptance of the product and service offered by the company, and where we believe we can add substantively to the knowledge and experience of the founder and the team as they prepare to move from scale up to commercialisation.

We often provide our finance in tranches which are progressively made available to the companies as they achieve their pre-agreed objectives. This approach is made possible because of the reporting which is provided by companies on a regular basis as well as the regular operations meetings that the Side by Side Partnership commits to each Portfolio Company.

Fund features

This Later Stage EIS Fund focuses on companies whose products and services have enhanced an existing market or created a new market through the application of technology.

No new investment is made until we have studied an exit program before we make an investment, although it is our intention to stay with the company until it is fully developed in its commercial role.

The high touch model means only eight companies are likely to be in the fund, with a new company not appearing until an existing company has left the fund.

We often invest using A Ordinary Shares which means that we give investors priority on exit.

Fund Facts

FUND NAME: The Side by Side Partnership EIS Later Stage Fund
FUND TYPE: Evergreen up to the full quota of 8 companies. Hence periodically open for more investment.
SECTOR FOCUS: The application of technology to change existing, or grow, new markets
STAGE: Scale-Up companies in transition to mainstream markets
FOSTER GROUP: Small investments in young companies to secure potential future investment opportunities.
TARGET PORTFOLIO SIZE: Up to 8 companies
MINIMUM SUBSCRIPTION: £25,000
MAXIMUM SUBSCRIPTION: No limit, however, EIS reliefs are only available up to £1,000,000 for 2018/19 tax year
INVESTMENT TERM: 4-7 years, minimum 3 years for EIS relief
MINIMUM FUND SIZE: £1 million
MAXIMUM FUND SIZE: No limit
OPENING DATE: TBD
INVESTMENT PERIOD: 2019 onwards

Companies we invest in

Companies that have been making revenue for at least two years and are rapidly growing as they prepare to transition to commercialisation.

Companies where basic governance has already been put in place.

Companies where the founders must already have significant personal investments in the company (not just sweat equity) and be paying themselves modest salaries.

Companies that are reasonably and fairly valued.

Companies that have achieved real-world scale up experience which will have caused them to make changes to the original structure of their product or service.

Once a company successfully progresses through our fund, we will introduce them to our network of family office investors. This ensures long-term capital is available to the company on terms which do not dilute early investors to the degree commonly encountered with institutional or venture funding.

The people we invest in

We invest in companies that are led by passionate entrepreneurs who exhibit an underlying faith that they will resolve all problems that might arise in the future of their company.

In choosing founders or entrepreneurs to support, we look for:

Passion

Natural leaders

The ability to make quick decisions with only partial information

Evidence of respect for investors and shareholders

Evidence that they seek and take advice/guidance