Fuel Ventures EIS Fund: new tranche with accelerated deployment in June 2020
Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.
Fuel Ventures deployed £7.5 million into a combination of new and follow-on investments in March and April, amidst the disruption and uncertainty caused by the Covid-19 pandemic.
Now five of its portfolio companies could benefit from additional investment.
To clarify: they are not looking for funds to see them through until normal business can resume.
These five digital businesses (listed below) seem to be doing well – in some cases, exceptionally well – although as ever past performance is not a guide to the future. OnBuy.com, for instance, has seen its revenues increase four-fold in the last three months.
The extra funding could help them take advantage of the current opportunities and accelerate their growth further.
Which companies are to be included?
The five companies intended to be included in the June accelerated allotment are detailed below.
Please note, whilst Fuel Ventures has every intention of deploying funds into the companies mentioned here, deals can fall through, so exposure to all five companies is not guaranteed. Should a deal fall through, the company will be replaced by one of the 30+ businesses in Fuel Ventures’ portfolio, so investor funds should still be fully deployed into five companies. All investments, with the exception of OnBuy, are likely to be at the same or similar valuations to deployments made in April. You can read a full review of the Fuel Ventures EIS online.
OnBuy.com is a marketplace which allows customers to buy products online from a number of merchants in a similar manner to Amazon. It is one of the fastest-growing marketplaces in the world.
Between February and April 2020 OnBuy.com grew monthly revenues four-fold, from £94k to £405k, and is reportedly on track to beat its May forecast of £515k revenue. The business has more than doubled the size of its team in recent months, added a number of blue-chip suppliers to the platform, including Unilever, and is adding 1 million products per month.
Fuel Ventures believes that OnBuy might now be valued more than double what investors paid for it as recently as April 2020, although of course there are no guarantees.
ContentCal is a subscription-based online platform which helps businesses manage their social media marketing more effectively and efficiently.
In April 2020, the business added £50k in annual recurring revenue as demand for the product increased due to marketing departments working from home. The management team is focused on adding products to the platform and expanding its sales team, most recently with a hire in Indonesia to service the APAC region.
Capdesk is a subscription-based business that helps companies manage their equity more cost-effectively. Capdesk’s software looks to bring down the cost of issuing equity, managing equity, developing employee share incentive schemes, and facilitating transactions.
Capdesk has been growing its revenue at 10% month on month and continues to develop its product range.
Distributed, which features in the Wealth Club “Interview with Mark Pearson” video, is an online marketplace for talent, and an advocate of remote working. The business connects businesses with talented software engineers using artificial intelligence. The platform helps businesses to quickly source the talent they need to grow.
Distributed has recently closed a partnership with Capita plc, the UK’s largest business process outsourcing and professional services company. Capita has taken an equity stake in Distributed and listed it as an internal supplier to Capita departments. Capita believes this could generate £10-25 million in revenue for Distributed over the next three years. Moreover, this high-profile contract could help Distributed secure other long-term supply contracts.
Arbolus (Collective IQ Group)
Arbolus believes the nature of work is changing and companies with flexible access to outside talent will have a competitive advantage. Its online marketplace facilitates this, connecting independent consultants with enterprise businesses.
Arbolus had a record month in April with revenue of $150k, up from $115k in March. Year on year, the business has seen growth of over 500%. The business has recently signed up a number of new blue-chip private equity and consulting clients, and has made new hires in both New York and Barcelona.
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Fuel Ventures EIS Fund – apply now
There could still be time to be included in the allotment for accelerated deployment. The quickest way to apply is online.Read more and apply online