With EIS now 25 years old, they are firmly established as the government’s preferred vehicle to support the growth and development of young businesses. But until now they’ve been out of the reach of most.
The tax benefits and reliefs of EIS are well documented, but even more important is their potential to deliver real returns, as well as supporting the UK economy in a significant way.
However, the major barrier to more people taking advantage of EIS has been the high minimum level of investment usually required.
The Side by Side Partnership is a relatively new fund which has already made waves and created a great deal of interest, because of its innovative approach.
Founded by John Bailye (pictured above), who has a proven track record in Australia and the United States of growing young companies into major corporations, the new fund is different on 4 main counts:
1 – It invests in later-stage, more established companies and so seeks to reduce the risk associated with start-ups;
2 – Young, exciting companies are put on a ‘watch list’ to monitor development and growth;
3 – The fund will only invest in a maximum of 8 companies at any one time, so that the Partnership’s mentors can give them their full attention (hence ‘Side by Side’);
4 – They are so confident in the success of what they are doing that they operate the highest hurdle rate in the market, at 160%, and for larger exits a performance hurdle of 400%.
Normally the minimum investment into the fund is £25,000, but because of the tie up with leading investment platform Seedrs, it is now accessible from just £50.
Founder John Bailye told us: “We are very excited to be leading the way in making a high quality EIS fund available to all clients of an adviser through this link with Seedrs. We will work hard with them to introduce EIS investing to a far wider audience.”
He explains further in this short video.
Adam Reeve, Senior Investor Manager at Seedrs added:
“Whilst known for providing access to single company equity rounds, to date Seedrs has raised and deployed over 20 fund campaigns for a variety of partners including accelerators and venture capital funds. This innovative new collaboration with The Side by Side Partnership not only provides more clients with an additional access point, but also offers an innovative online platform to efficiently execute their investment and monitor their portfolio.”