Nova Cofoundery SEIS / EIS Fund

The Nova Cofoundery fund will invest across a mixture of SEIS and EIS qualifying companies in opportunities such as software development, new medical technology applications, fintech or education technology.

Highlights

  • Target return 2.18x (net of fees and excluding tax relief) with an expected exit timeline of 5-7 years (not guaranteed)
  • Minimum of 10 portfolio companies
  • 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.

Read important documents and apply

The manager

Nova’s CEO, Andy Davidson, has co-founded multiple technology companies over a 20 year period, raising £5m in seed venture capital in the process. In 2017 he was recognised by the Sunday Times as one of the UK's top 100 disruptive entrepreneurs.

Nova typically see over 25 opportunities per investment it makes. Over the last 10 years, Nova has invested in 70 companies.

The offer

Nova looks for companies it feels offers technology to satisfy consumer needs or demands with the use of a digital solution. It looks for businesses with the potential to create new market segments or displace existing offerings with a better alternative.

Nova will look to operate on a co-investment basis by taking a seat on the board and providing support and advice via this “cofoundery” model. They aim to provide access to services such as HR to the portfolio companies to help minimise costs. Part of the fee paid to Nova is then reinvested into the companies on the same terms as the fund.

An example of a company backed and supported by Nova is Aquarate. This business looks to provide automated fluid balance monitoring systems to prevent hydration-related illnesses, the cause of up to 40,000 preventable deaths per year. Poor hydration costs the NHS £1 billion every year.

Risks – important

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

SEIS and 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.

Fees and charges

A summary of the fees and charges is shown below. Please note, the only charge that applies to investors for this offer is the performance fee. All other charges are levied against the investee companies. 

Initial charge (investee companies) 5%
Initial charge (investors) 0%
Dealing fee 0.25%
Administration fee 0.35%
Annual management charge 2%
Performance fee 20%

More detail on the charges

Read important documents and apply

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
2.18x
Funds raised / sought
£10.0 million sought
Minimum investment
£10,000
Deadline
Discretionary
Last updated: 1 March 2019

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