About Octopus Ventures' Knowledge Intensive EIS Fund
Octopus Ventures' Knowledge Intensive EIS Fund focuses investment across seven sectors: health, fintech, deep tech, business-to-business software, climate, bio and consumer. Investments in knowledge intensive companies allow investors to claim income tax relief of 30% on up to £2m. It aims to deploy funds between six and twelve months from the point of deployment.
Summary
| Fund Manager: | Octopus Ventures |
| Tax Efficiency: | EIS/SEIS |
| Sector Focus: | Multi-sector |
| Stage Focus: | Early-stage |
| Target Portfolio Size: | 10-20 companies |
| Minimum Subscription: | £10,000 |
| Closing Date: | March 2024 |
| Website: | Learn more about the Octopus Ventures Knowledge Intensive EIS Fund |
Fees
| Full initial fee: | 2% |
| Annual management fee: | 2%+VAT |
| Administration fee | nil |
| Dealing fee: | 1% |
| Performance fee: | 20%+VAT |
Pros & Cons
Pro: Gives investors a greater tax-efficient allowance thanks to its KIC focus.
Con: Portfolio concentration.
How does SyndicateRoom's Access EIS Fund compare?
By comparison, SyndicateRoom's Access EIS fund builds investors a large portfolio of 50+ companies across all sectors, co-investing with experienced angel investors (average IRR of 42%). Because venture capital returns follow a power law distribution (see our report on this), it is better to try and build large portfolios of quality companies, rather than trying to pick a small group, because startups have a high likelihood of failure regardless of their potential. With a larger portfolio, each individual failure represents a smaller percentage of your overall holding.
Our model is based on our proprietary analysis of the UK startup market which showed that, on average, the market as a whole grows by 28% each year. It's not possible to invest in the entire market, but with large portfolios and access to the most promising deals, investors can optimise their return potential (see our white paper).
We gain access to the most promising new startups by co-investing with the UK's most successful angel investors, who meet our strict performance and sector expertise criteria, while providing access to new businesses at very early stages and on exactly the same terms.
Our data-driven approach aims to work around the limitations of a single fund manager attempting to pick winners.
Our minimum investment is £5,000.
| Fund Manager: | SyndicateRoom |
| Tax Efficiency: | EIS |
| Sector Focus: | Sector Agnostic |
| Stage Focus: | Early-stage |
| Target Portfolio Size: | 50+ companies |
| Minimum Subscription: | £5,000 |
| Closing Date: | Evergreen |
| Website: | Learn more about the Access EIS Fund |
Are you the fund manager? Email [email protected] with any comments or amends.