Blackfinch Ventures EIS Fund

The Blackfinch Ventures EIS fund will invest in technology-focused EIS qualifying companies which it believes can solve real-world problems.

Highlights

  • Technology focus
  • Target return 5x (net of fees and excluding tax relief) with exits expected after 4-7 years (returns and timeframes not guaranteed)
  • Aims to hold a minimum of 10 portfolio companies with advance assurance
  • Investments should be deployed within 12 months (not guaranteed)
  • Minimum investment £10,000

Important: The information on this website is for experienced investors. It is not advice nor a research or personal recommendation to invest. If you’re unsure, please seek advice. Investments are for the long term. They are high risk and illiquid and can fall as well as rise in value, so you could get back less than you invest.


The manager

Blackfinch has experience as an EIS investment manager, although its previous funds focused on media and asset-backed investments which no longer qualify under current EIS rules.

The management team is based in Gloucester. They believe by targeting opportunities outside of London they should face less competition and so can select companies with more attractive valuations, but which they feel still also have equal growth potential.

The offer

Investors should hold a portfolio of at least 10 companies. The fund will typically invest between £200,000 to £1,000,000 in companies over a spread of development stages ranging from Seed to Series A and B. Blackfinch will also co-invest in the fund on the same terms as investors.

Risks – important

This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.

While Blackfinch has invested previously within an EIS framework, this experience is predominantly in media and asset-backed investments.

EIS investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks. 

Tax rules can change and benefits depend on circumstances.

This fund invests in early-stage businesses which are more likely to fail than larger ones, so you should expect a number of failures in the portfolio. Blackfinch suggests that of seven portfolio companies, two might fail, three might return 3x, one might return 7x and one might return 15x. Returns are not guaranteed. You should expect a number of failures in the portfolio.

Fees and charges

Investor charges
Full initial charge 3%
Wealth Club initial saving
Net initial charge through Wealth Club 3%
Annual management charge
Administration charge
Performance fee 20%
Investee company charges
Initial charge
Annual charges 2%
All fees and charges are stated exclusive of VAT, which may be applicable in some cases. Any fees and charges payable by the investee companies or the underlying businesses do not directly come out of your investment. However, they will effectively reduce the returns generated by investee companies and therefore impact your investment.

More detail on the 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.

The details

Type
Fund
Sector
Technology
Target return
5x
Funds raised / sought
£10.0 million sought
Minimum investment
£10,000
Deadline
Discretionary
Last updated: 13 August 2019

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