New Fund To Help Investors Find Start-Ups
Posted on 11th February 2014
The first fund of its kind has been launched for people who want to buy shares in start-up or early-stage businesses by Crowdcube, in partnership with Strathay Ventures, a wholly-owned subsidiary of Braveheart Investment Group.
The Fund has been designed specifically to suit people who want to invest in start-up and early stage businesses but perhaps lack the resources or time commitment to fully research and review pitches, carry out their own due diligence, and build structured, balanced portfolios.
The Crowdcube Venture Fund will typically invest in businesses that are registered for enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) tax reliefs but while the minimum investment for some EIS schemes start at £25,000, the minimum individual subscription in the fund is £2,500.
In addition, Investors can top-up their investment over the two-year initial investment period. Investors eligible for the fund pay an annual management fee and an initial set up charge.
The Crowdcube Venture Fund aims to build balanced portfolios for investors who can expect returns to come from portfolio companies by way of trade sales, initial public offerings (IPOs) and licensing deals.
As the principals involved point out, many investors are attracted to the idea of crowdfunding but see it as a potentially risky venture, particularly with start-up businesses that have no track record.
However, using the fund means that the businesses are selected for them and allows them to build up a portfolio of investments by co-investing in ventures that have been screened by a professional fund manager.