Fund Twenty8, the first ever passive tracker EIS fund, has completed capital deployment of its first £4.5m fund ahead of time.
Instead of decisions by a single fund manager, Fund Twenty8 used its algorithm and underlying data from 1,391 transactions from 875 investors to make 32 investments. Funding rounds ranged from £240,000 to £2.8m with Fund Twenty8’s contributions varying from £42,000 to £190,000.
Nine of the 32 investments were in more established companies raising over £1m. Investments offer investors highly diversified range of ten sectors, including biotechnology, software, e-commerce, transport, renewable energy and much more
Fund Twenty8 claims to be the world’s first passive EIS fund to successfully deploy its capital using an algorithm and without the investment decisions of a fund manager.
Fund Twenty8 has built its 232 investors a diversified portfolio of 32 EIS-qualifying early-stage investments. The fund’s strategy of ultimate diversification is based on a NESTA and Intelligent Partnership study which found that investors require a portfolio of at least 28 investments to have a 95% chance that one investment will generate at least 10x return on initial capital.
Fund Twenty8 built a portfolio diversified across both stage and sector. The funding rounds it invested into ranged from early-stage seed rounds of £240,000 through to later-stage series A rounds of £2.8m. Nine of the 32 investments were in more established companies raising £1m+.
The portfolio contains companies across varied technology sectors. 25% of the portfolio are biotechnology businesses, 22% are in software, 15% are in e-commerce and marketplaces, 10% in hardware and IoT with further positions in renewable energy, transport, manufacturing and many more.
James Sore, SyndicateRoom’s Chief Investment Officer of SyndicateRoom, said: “The fund has built a really impressive portfolio and it’s already beginning to show very promising signs. One among our portfolio has already secured an additional £4.5m in capital from a large institutional investor to further accelerate the growth of the business and the fund investment. I’m delighted that Fund Twenty8 was able to get in early and use its diversification strategy to spread the risk.”
Goncalo de Vasconcelos, CEO of SyndicateRoom, added:“Almost every industry has been revolutionised by the effective use of data – an example that is closest to home is the use of big-data in robo investing. So, it’s not surprising that the revolution has reached EIS investing and I’m delighted that SyndicateRoom is the first provider to develop and successfully prove these data-driven techniques.”
Fund Twenty8 is currently raising its second EIS fund and will start deploying in April 2018. It does not accept investment beyond its £9m cap. The fundraise closes on 30th March or once the £9m cap is reached.