Jenson EIS Fund
The fund offers a mixture of follow-on investments from the existing Jenson portfolio and new opportunities within the technology sector.
- Target return of 185p per 100p invested (not guaranteed)
- Aims to invest in five investee companies
- Minimum investment £10,000
Jenson Funding Partners was founded in 2012. It launched one of the first SEIS funds in 2012 before establishing its EIS fund in 2015. To date, the EIS has raised over £2.5 million across 16 investments, of which all but one were follow-on opportunities.
Watch a video interview with portfolio director Matt Ellams:
The EIS fund focuses on innovative and disruptive technology firms. While Jenson will invest across multiple sectors, all prospective companies will be assessed for the following criteria:
- Strong concept and strategy
- A credible management team
- Business and financial risks
- Equity deal and exit expectations
Jenson provides a support package to investee firms, covering finance, marketing, and operations. The package, which is mandatory for the first year and optional thereafter, is paid for by the investee company.
The EIS fund will primarily source its deals from its existing portfolio. However, it will also be open to external opportunities, particularly those that fall within the 'equity gap' which Jenson considers to be a space often overlooked by the majority of EIS and VCT funds.
The fund aims to select investee companies on the basis of an overall target exit consideration for the fund of 185p for every 100p invested within four to seven years. Please note, returns and timeframes are not guaranteed.
Jenson will seek to realise investments over a period of four years to seven and employ a variety of exit strategies, including trade sales to other companies in the same sector or industry as the investee company, listing on a stock exchange or by selling its share of the investee company to a larger private equity firm. Realistically, as many of the companies will be early stage, exits are largely expected from trade sales rather than from flotations. Exit is expected in four to seven years, although this is not guaranteed.
Below are portfolio company examples from previous iterations of the fund. They are outlined to give a flavour of the types of companies you might expect but are unlikely to be part of a new investor's portfolio.
Twizoo uses AI technology to automatically capture user-generated content and create real-time reviews. Madeline Parra and John Talbott, the company’s founders, developed the idea after noticing that restaurants received nearly 7 times more exposure on social media than on conventional reviewing platforms.
A mobile application, Twizoo scans and analyses real-time conversations to generate user reviews and sentiment. The technology can be applied to something as simple as suggesting popular bars or restaurants to acting as a social media monitoring platform for businesses.
Jenson originally invested £150,000 into the business through its first SEIS fund. The funding was used to launch a beta version of the product and to prove the business model. As a result, the company was acquired by Skyscanner via a trade sale in November 2017.
Voneus works with rural communities to provide high-speed broadband across England and Wales.
Founded by telecom veterans, Voneus can wirelessly connect to existing Superfast fibre networks using a series of transmitters. To access the new connection residents simply need to install a small receiver in their home. Current speeds are between 30-50Mbps, which is more than enough to stream TV, use teleconferencing software or work remotely.
Voneus currently supplies around 4,500 homes across 25 rural communities. In August 2019, the company received £10 million in funding from Macquarie Capital, which it will use to upgrade its network and work towards its target of supplying up to 900,000 homes.
Jenson first invested through its EIS fund in 2015 and has provided follow-on funding every year since.
Tapfuse (example of previous failure)
As is to be expected with young companies, not all succeed.
Jenson EIS and SEIS Fund 2 originally invested into Tapfuse, a mobile application developer, in 2015. The business created multi-platform applications so that information could be shared in professional and educational institutions.
The business started positively, gaining a number of potential clients and developing a strong sales pipeline. However, it lost momentum due to the founder's personal circumstances. Jenson investigated possible options once it became clear the founder no longer wished to continue with the business but ultimately struggled to find a viable alternative.
Eventually, Jenson was outvoted by Tapfuse's other shareholders, and the business was put into administration in December 2018.
To date, Jenson has made 16 EIS investments, of these, only one is no longer trading. Please note: past performance is not a guide to the future.
Source: Jenson, as at September 2019. Past performance is not a guide to future performance. The data above shows net asset value of the last four year's EIS funds, please note, five year data cannot be displayed as the first EIS fund launched in 2016. It shows data since launch of each fund. The data was valued in accordance with International Private Equity and Venture Capital Guidelines which require investments to be valued at their fair value and include a number of techniques for doing so depending on the circumstances. The Price of Recent Investment valuation technique is commonly used in a seed, start up or an early stage situation, where there are no current and no short-term future earnings or positive cash flows. For these enterprises, typically, it is difficult to gauge the probability and financial impact of the success or failure of development or research activities and to make reliable cash flow forecasts.
Risks – important
This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.
EIS / SEIS 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 EIS / SEIS 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.
A summary of the main charges is shown below. Some of these will be payable by the investor, whilst others by the investee companies. The investment may have additional charges and expenses: please see the provider documents, including the Key Information Document, for more details.
|Full initial charge||—|
|Wealth Club initial saving||—|
|Net initial charge through Wealth Club||—||Annual management charge||—|
|Performance fee||25%||Investee company charges|
|Annual fees||See below|
More detail on the charges
Timing of the offer
The fund anticipates taking between 6-12 months to fully deploy investor capital following the closing dates. However, this is not guaranteed and it may take longer.
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.
- Target return
- Funds raised / sought
- Minimum investment