Haatch Ventures EIS: introductory tranche with accelerated deployment
Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.
Today, some of the world’s largest companies are in online retail – from Amazon to Alibaba.
Back in the mid to late 90s, e-commerce was in its infancy but showed great potential. This was clear to entrepreneur Scott Weavers-Wright, who turned his family’s business – a children’s shop in Peterborough – into one of the UK’s largest e-commerce businesses, Kiddicare.com. Kiddicare was eventually sold to Morrisons for £70 million.
Scott subsequently founded, grew and exited another online business and started to invest in early-stage disruptive digital businesses, originally as an angel investor.
Haatch Ventures was created in 2013 – and the first EIS fund launched in 2018 – to allow experienced investors to co-invest alongside Scott and three other successful entrepreneurs (between them they have founded, grown and sold businesses worth over $150 million) and benefit from their knowledge and experience of investing in disruptive UK technology.
Haatch Ventures EIS is now available through Wealth Club. To mark the launch, an exclusive £500k introductory tranche with accelerated deployment is reserved for Wealth Club investors.
The tranche closes on 13 July 2020 (extended from 30 June). Investors should be invested into a minimum of four companies out of the five listed below by 31 August 2020 and receive EIS3 certificates shortly after – not guaranteed. You can place a reservation or read more and apply online.
Place a reservation now
Which companies are to be included?
The expected companies operate in very diverse sectors but have some characteristics in common. They are all digital businesses – typically SaaS (Software as a Service) – an area Haatch’s investment team knows well. In addition, they’re B2B, a model Haatch understands and favours.
Please note, whilst Haatch Ventures has every intention of deploying funds into the companies below, deals can fall through, so gaining exposure to all five companies is not guaranteed. Investors’ capital will be deployed into a minimum of four investee companies.
As negotiations are currently in progress, Haatch is unable to mention each company by name.
1. SaaS AI operations platform for micromobility operators
E-scooters and bikes are becoming ubiquitous in cities around the world. Indeed, micromobility, the sector that includes those small vehicles from e-scooters to docked e-bikes, has been touted as “the future of urban transportation”.
The micromobility market is predicted to be worth $300–$500 billion in the US, Europe and China by 2030. Worldwide, investors have already poured more than $5.7 billion into micromobility startups in the past four years. Two US-based scooter-sharing startups have reached unicorn status in a matter of months.
Operating a successful and rapidly growing micromobility business presents significant logistics challenges: from locating all the vehicles to ensuring they’re fully charged and predicting demand.
This Company is addressing this with its AI-powered operations platform, which enables operators to reduce their costs, improve asset utilisation, automate processes and scale their systems. Launched in 2018, the company has 19 clients in three continents and is on track to generate £500k+ revenues in 2020 with target revenues of £30 million within five years – not guaranteed.
Haatch is excited by its plans to expand its capabilities to new areas such as battery management.
2. SaaS for e-commerce logistics
UK e-commerce is reportedly set to reach €222 billion in 2020. That’s probably millions of items that need to be delivered every day.
But the world’s logistics network was not built with e-commerce delivery in mind. Indeed, every day the UK experiences 600,000 failed deliveries costing over £27 billion a year and over three out of four negative customer reviews relate to delivery problems.
This Company has created software that connects and optimises the e-commerce ordering, shipping, and delivery process. It automatically shows the most effective delivery option for each package, provides tracking from dispatch, and arranges deliveries through established carriers (it has integrations in place with 93% of UK carriers).
The Company has already built an impressive client list, including eBay, Gousto, Fetch, and Vision Direct, in a market of over 3bn UK B2C shipments per year.
3. AI SaaS platform for small and medium-sized airports
This Company has developed AI-powered SaaS software for small and medium-sized airports.
Currently, this market is underserved. Small and medium-sized airports have to choose between the hugely expensive software used by the likes of Heathrow or an Excel spreadsheet. This company offers a solution that could help them manage operations, billing and planning as effectively as the enterprise products but at a fraction of the cost.
As part of its due diligence, Haatch has spoken to the startup’s existing customers – there are six across the USA and Europe, generating £360,000 in annual recurring revenue. They sing the company’s praises, explaining the easy-to-integrate solution does a ‘better job at an eighth of the price of the current legacy system options’.
Total addressable market is estimated at £4.8 billion a year and the "serviceable obtainable market" (the segment the company is specifically targeting) is estimated to be worth £416 million per year.
4. SaaS enterprise productivity platform
Research suggests only 13% of employees worldwide are engaged at work. In other words, only about one in eight workers are psychologically committed to their jobs and likely to make positive contributions to their organisations. This research was conducted some time ago. The picture could be significantly worse with the current disruption to workplaces.
This company has designed a SaaS platform that can help businesses address this. It provides tools to help enterprises solve critical productivity issues in their workforce by improving key areas like culture and behaviour, goal setting, agility, and knowledge management. The market is estimated to be worth over $4 billion.
And the timing could not be better either. With thousands of businesses shifting to flexible and remote working aligning and measuring teams’ performance has become more challenging. Yhis platform gives leaders and managers an easy way to track and align longer-term goals amongst their workforce, wherever they are!
5. Enterprise Equities Trading Marketplace
Fintech has long been a popular investment sector. There have been a few well document success stories, but also many copycat businesses attempting to raise funds. Over the last 18 months, Haatch has combed through 57 fintech opportunities and turned all of them down - until now.
Three months ago, Haatch began talking to a group of experienced investment bankers about a platform they were building to address a major legacy ‘problem’ in large-volume equities trading or Equity Capital Markets (ECM) – a market which sees trading volumes of $1.5bn per day.
Technology and automation have radically transformed almost all other areas of finance. ECM, on the other hand, still rely on brokers calling, emailing and even faxing each other to set prices and create markets. This start-up has been designed to replace that legacy, manual and opaque process with a transparent, automated one which allows investment bankers and brokers to more easily trade with one another.
What could you consider next?
Wealth Club has secured a £500k reserved allocation for its investors. If interested, please place a reservation by completing the form at the top of this page – the deadline for applications is 13 July 2020 (extended from 30 June). Before investing, please carefully read the provider offer documents and the Wealth Club review, including details of performance to date, risks and charges.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
Haatch Ventures EIS – introductory tranche
Haatch Ventures EIS is now available through Wealth Club website. To mark the launch, an exclusive £500k introductory tranche with accelerated deployment is reserved for Wealth Club investors. The tranche closes on 13 July 2020 (extended from 30 June).Make a reservation now