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.
- 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
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.
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
|Full initial charge||3%|
|Wealth Club initial saving||—|
|Net initial charge through Wealth Club||3%||Annual management charge||—|
|Performance fee||20%||Investee company charges|
More detail on the charges
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- Target return
- Funds raised / sought
- £10.0 million sought
- Minimum investment