Great Point’s Managing Director, Dan Perkins, recently spoke to Angel News about their Ventures EIS since its launch a year ago.
On the first birthday of the Great Point Ventures (EIS) Fund, Angel News spoke to Dan Perkins, Managing Director at Great Point about the fund, its investments and where the exciting investment opportunities lie in the media sector in the next 12 months.
The fund was launched in 2018 to offer investors access to a portfolio of UK-based, growth businesses operating in the media and creative industries.
You have just passed the one-year mark on your first EIS fund launched after the changes brought in under the Patient Capital Review. How much have you raised and what has been the reception from investors?
– In our first year we have successfully raised and deployed £3m of capital and I am encouraged to report that the reception from advisers and investors has generally been positive. As one would expect when launching a new fund, a number of advisers we have worked with in the past have wanted to see evidence of how the new strategy is executed in practice before they look to recommend the fund to their clients. This is what we have been busy working on and we should hopefully see the fruits of our labours over the coming 6 to 12 months. Encouragingly, most investors have been able to see the scale of the investment opportunity in the UK creative industries, and also identify the sector as a useful diversification tool in a market that is currently heavily dominated by “tech” focussed offers.
How have you deployed the funds?
– We have deployed funds raised across six exciting and varied early stage media businesses. We have funded three production businesses based throughout the UK with differing creative focuses ranging from scripted drama through to documentaries; a fascinating gaming business aimed at young children which combines an interactive gaming experience with an innovative neurodevelopmental assessment and two businesses aimed at shaking up the content distribution market through the use of proprietary technology. The portfolio we have created to date is actually quite diverse when you consider our strategy is sector focussed.
What have been the highlights of the year?
– Meeting the entrepreneurs looking to raise capital and feeding off their passion and enthusiasm for the UK creative industries. Getting our first investment done was also a hugely satisfying achievement given the amount of effort we put in as a team to get to that stage. On a more general note, it has also been encouraging to see HMRC issuing advance assurances for content production businesses – something that just 12 months ago a number of cynics within the tax efficient industry thought may not happen.
What deals have you got in the pipeline?
– Our pipeline is currently sat at between £25m to £40m of investable, spread across 25 to 30 businesses which we have been busy curating over the past year. The pipeline consists of independent television production companies all the way through to new online platforms being created to make the consumption of media content even easier for the public at large.
What’s your view on the media and creative industries right now?
– There has never been a better time to invest in the UK creative industries – a message that is clear for all to see when you read some of the recent headlines in the national press. The streaming platforms such as Amazon and Netflix have really shaken up the industry and the demand for good quality UK content is ever growing, evidenced by the success we, as a nation, had at this year’s Emmys. In the words of Reed Hastings, Netflix CEO, “Over the next several years….we are going to see a very large increase in how much content is produced here in the UK”
What’s your outlook for the next 12 months? What are your priorities? What can we expect to see from Great Point?
– Growth, growth, growth! Our main priority is to continue to build our strategy AUM. Our next investment close is the end of October, with further closes scheduled for the end of January and April next year. In the short term, we have some exciting news to announce regarding a significant exit from one of our earliest SEIS funded companies, which should further cement our position as the “go to” VC house when it comes to investing successfully in the UK creative industries.
The original article can be viewed on Angel News via https://www.angelnews.co.uk/blog/venture-capital/the-future-of-media-investment-interview-with-great-points-dan-perkins/