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Velocity aims to appraise potential investments not just for the traditional business qualities of strong management, robust operations and risk management, but also for dynamic attributes that flourish in the digital economy and technology environment, namely: innovation, scalability, agility and speed to market.
The Fund takes a long-term view and aims to only look at the possibility of exiting an investment after it has been held for at least three years. However, there may be occasions where an earlier sale is a commercially sensible decision. It is anticipated that most exits from Investments will take place after they have been held for between four years to seven years - though others may take significantly longer.
Velocity keeps the following core principles for its fund management:
Investor alignment – The Velocity team has also invested over £1.5m of their own capital to align with investors
Active management approach – all investee companies are actively managed
to ensure that key milestones are monitored and achieved
Focus on revenue generation – even though Velocity operates within the technology sector, traditional business values of strong management, revenue generation, profit margins and target audience resonance are applied.
First and foremost, the Investment Consultant will address the issue of target audience demand, given that the number one reason for a start-up failing is a lack of market demand for its product.
Potential Investee Companies will be appraised by the Management Team and the Technology Panel by reference to these qualities and characteristics before due diligence is undertaken and a report is prepared for the Investment Manager.
| Fund Manager: | Velocity Capital |
| Tax Efficiency: | SEIS |
| Sector Focus: | Technology |
| Stage Focus: | Pre-seed and Seed |
| Target Portfolio Size: | 3+ companies |
| Minimum Subscription: | £10,000 |
| Closing Date: | Currently closed |
| Website: | The Velocity SEIS Technology Fund |
Pro: Experienced team with heavy sector experience.
Con: Portfolio concentration as a minimum of just three companies targeted.
| Full initial fee: | 5% |
| Annual management fee: | 2% |
| Administration fee | nil |
| Dealing fee: | nil |
| Performance fee: | 25% |
By comparison, SyndicateRoom''s Access EIS fund builds investors a large portfolio of 50+ companies across all sectors, co-investing with experienced angel investors who have an average IRR of 42%. Our model is based on our proprietary analysis of the UK startup market, which showed that on average, the market grows by 28% each year. With large portfolios, and a large network of angels providing access to the best deals, earlier, we aim to replicate that annual growth for our investors while mitigating risk. This 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.