The Manager aims to invest in a series of start-up Companies with high growth potential within the food and drink Industry. The main objective of the Fund will be to maximise returns to investors, while seeking to spread risk via portfolio diversification and taking advantage of the tax benefits of the SEIS.
The Manager believes that the growing food and drink market represents an attractive environment in which to nurture and build these small businesses. Although a variety of potential investments will be assessed, there are several factors that will be taken into consideration, as detailed below:
The company and its product must show its tangible advantage over competitors. It must fundamentally articulate why it is better value for the target consumer market.
A minimum requirement will be the completion, or near-completion, of a product for either market testing or an initial release.
A demonstrably large potential market is essential, in terms of both target consumers and geography, with a product that is quickly scalable
The venture must explain why it will be able to enter into the food and drink industry and cause disruption.
The combined management team will need to possess a high level of experience and commitment to the business idea, as well as demonstrating an entrepreneurial spirit.
The Company should be able to validate its potential. For example: initial revenues, industry recommendations or established user base
The business idea must be clearly targeted at a well-defined gap in the market, new fast growing trend or consumer segment.
Ideally, the Company will have registered trademarks that can be protected.
Trade sale, equity or debt refinancing and share buyback, or flotation of each of the Investee Companies.
Enterprise Investment Partners LLP
Enterprise Investment Partners LLP is a specialist smallcap investment boutique established over five years ago, whose activities include corporate finance, fund management and the design and promotion of tax-efficient investment products, with major emphasis on EIS. Enterprise has considerable experience of EIS and the tax-efficient industry, with particular expertise in the leisure, media, commercial property and renewable energy sectors. The three principals together have raised over £200m under EIS, VCT and other tax efficient structures over the last five years.
Startup Funding Club Ltd was formed in 2012 by Stephen Page and four experienced entrepreneurs and investors. Recognising the boom in the number of exciting new start-ups in the UK and the difficulty in accessing seed funding, SFC has helped to plug this gap through the establishment of an ecosystem of entrepreneurs and investors active in the UK start-up community.
All of the founders and advisers have been involved in funding, managing and mentoring new businesses for many years. SFC have experience in advising on 5 previous SEIS funds, managing angel investment networks and sourcing overseas investment for investee companies. In July 2016, SFC was awarded the ‘Lead Angel Syndicate of the Year’ by the UK British Angels Association (UKBAA). Through previous SEIS Funds, the company has advised and mentored over 12 food and drink companies.
SFC works closely with successful entrepreneurs, distributors, buyers, investors and other experts and advisers in the Food, Drink and Hospitality sector. Partnering with experts enables SFC to select exciting companies and ensure they receive post-investment support and help with their branding, positioning, marketing and distribution strategies.
This strategy has allowed SFC to back twelve Food and Drink companies since 2014 through its generalist Startup Funding Club SEIS Fund. This portfolio includes brands across various segments such as children and toddler snacks, food supplements, artisan food or dairy. These brands are distributed nationally through major retailers such as Waitrose, Sainsbury’s, Boots, Whole Foods, Harrods, Selfridges, as well as Ocado and various ecommerce platforms. This demonstrates the strength and the diversity of the post-investment support that SFC provides to investee companies.