Fund in Focus - Jenson Funding Partners LLP – October 2018

Introduction

Jenson’s pre-investment process focuses on identifying those organisations capable of beating the odds and maximising returns. This is not a Dragon’s Den snapshot style process. The Jenson team spends quality time, often five face to face meetings and more, getting to know the Founders, Leadership Teams and their business propositions. It is important that both parties believe in the scope and scale of the market opportunity. This is a rigorous process that is specifically targeted on reducing SEIS risk.

The fund is a generalist fund, thereby the sector focus is agnostic and the type of businesses and opportunities can be anything that is SEIS/EIS compliant (typically small early stage companies in non-capital intensive sectors). The specific focus of the fund is to target companies with: strong management, momentum in the business (i.e. not pure start-ups) and low risk for a start-up (e.g. have a low cash burn).

Specifically, the EIS fund will concentrate on the best of Jenson’s existing portfolio but will always be benchmarked relative to new external opportunities.

Background

Established in 2012, Jenson Funding Partners has launched five SEIS and 4 EIS Funds. We are now on our 8th tranche. Jenson have invested £15 million in close to 100 entrepreneurial UK businesses which have typically launched their product or service and are typically close to or post revenue. In addition to the continued investments made by the SEIS; the EIS introduced in 2015, along with the all-important syndicated investors, supports the growth within the investee portfolio by providing follow on funding to maintain their growth. To date, highlighting the quality of our portfolio companies, over £6 million of additional syndicated equity has been invested, along with over £5 million of debt facilities. Significantly these external rounds have all been at uplifts to the SEIS valuations.

Fund highlights

In November 2017 we announced our first SEIS cash exit when Twizoo was acquired by Skyscanner, details of the deal were confidential. We are hopeful that we will see more exits in the coming months as our investments mature.

During the summer months we deployed the first tranche of our 2018/19 EIS with three investments made to date, two of them have been made in syndication with external investors, with circa £1 million of EIS and follow-on capital being deployed. The syndication gives credence and credibility to the valuations the investments have been based on.

The companies we have invested in are from our existing SEIS/EIS portfolio, Voneus, Dame and Brain Broker, all received follow-on funding rounds.

Fund showcase (Selected Investee Company highlights)

If you are interested in further information about Jenson Funding Partners EIS Fund or SEIS Fund, please contact us on info@kuber.uk.com or +44 (0) 20 7952 6685.