Explore the top 20 EIS funds in 2023 and discover the best EIS investment opportunities to enhance your investment portfolio.
Introduction to EIS Funds
The Enterprise Investment Scheme (EIS) is a government-backed initiative designed to encourage investment in high-risk, early-stage businesses in the UK. Offering substantial tax reliefs, EIS funds are an attractive option for investors seeking to diversify their portfolios while supporting innovative startups.
In 2023, the landscape of EIS funds has expanded, presenting numerous opportunities for savvy investors. This guide highlights the top 20 EIS funds to consider, each offering unique advantages and investment potentials.
Benefits of Investing in EIS Funds
Investing in EIS funds comes with several significant benefits:
- High Growth Potential: Access to startups with the potential to multiply your investment.
- Tax Relief: Up to 30% income tax relief on investments.
- Diversification: Opportunity to diversify your investment portfolio with a range of sectors.
- Supporting Innovation: Contribute to the growth of innovative UK businesses.
These advantages make EIS funds a compelling choice for investors aiming to maximize returns while managing risk through tax incentives.
Top 20 EIS Funds to Explore in 2023
1. ARIE Capital
ARIE Capital Technology EIS Fund 3 focuses on a broad spectrum of technology businesses, including data, IoT, and medical devices. With investments ranging from £350,000 to £1 million, ARIE Capital offers a diversified portfolio across the UK.
2. Committed Capital
Established in 2001, Committed Capital’s EIS Growth Fund invests approximately £3 million in ten UK-based companies annually. The fund targets dynamic sectors like fintech and SaaS, aiming for high returns through strategic growth.
3. Draper Esprit
Draper Esprit’s EIS fund emphasizes later-stage investments in high-growth European companies. With investments between £5 million and £50 million, the fund has a strong track record, including ventures like Graphcore.
4. Endeavour Ventures
Focusing on enterprise software and scalable technologies, Endeavour Ventures invests between £500,000 and £5 million in UK-based companies. Notable investments include Boku plc and Blue Prism Plc.
5. Earthworm
Earthworm aligns investment with social and environmental impact. Investing at least £10,000 in sectors like waste and energy, the fund supports sustainable UK businesses such as Naked Energy and Firglas.
6. Force Over Mass
Targeting B2B technology innovations, Force Over Mass’s EIS funds offer investments from £100,000 to £150,000. The fund has demonstrated an impressive 84% survival rate with investments like Flux and What3Words.
7. Great Point Investments
Great Point Investments merges alternative investment with the creative industries. Investing between £100,000 and £1 million, the fund supports ventures like Factual Fiction and Seven Seas Films.
8. Haatch Ventures LLP
Haatch Ventures LLP focuses on disruptive and scalable tech startups. With investments ranging from £150,000 to £500,000, Haatch supports digital transformation companies like Veritonic and Buymie.
9. Jenson Funding Partners
Since 2012, Jenson Funding Partners has invested over £3 million in innovative startups through its EIS and SEIS funds. Key investments include Voneus and LiveIT, backed by comprehensive support programs.
10. MMC Ventures
MMC Ventures funds technology businesses that transform markets. Covering Europe and the UK, the fund invests from £100,000 to £5 million, supporting companies like Gousto and Bloom and Wild.
11. Newable Ventures
Newable Ventures invests in deep tech, digital, and health sectors. With investments between £500,000 and £1.5 million, the fund has backed firms like Sustainable Marine Energy and Cognism.
12. Nexus Investment Management Ltd
Nexus Investment Management Ltd focuses on high-growth businesses in health, education, and digital sectors. Investing £200,000 to £1 million, Nexus supports companies like Huma and Vivid.
13. O2h Ventures Ltd
Specializing in biotech, O2h Ventures Ltd invests in life sciences and AI technologies. With minimum investments of £25,000, the fund backs innovative startups such as Stemnovate and NeoPhore.
14. Praetura Ventures
Praetura Ventures supports ambitious Northern England companies across tech, creative, and health sectors. Investing around £1.3 million per company, Praetura has funded businesses like Patchwork and SteamaCo.
15. RLC Ventures
RLC Ventures targets enterprise, entertainment, and fintech sectors. With investments ranging from £50,000 to £300,000, the fund supports innovative companies like Greendeck and Scribeless.
16. Sapphire Capital Partners LLP
Managing over thirty EIS and SEIS funds, Sapphire Capital Partners LLP invests between £50,000 and £1 million across various sectors. Notable investments include Harty Nutrition and Medesk.
17. SuperSeed
SuperSeed focuses on AI and SaaS B2B companies with proven market fit. Investing £100,000 to £500,000, the fund has supported ventures like ThingTrax and DoPay, leveraging extensive management experience.
18. The Side By Side Partnership Ltd
This partnership invests in established UK technology companies, providing both capital and strategic support. With investments between £200,000 and £1 million, past successes include Dendrite and Prism Sola.
19. Triple Point Investment Management LLP
Triple Point Investment Management LLP targets growth businesses with positive social contributions in healthcare and education. Investing £200,000 to £600,000, the fund supports companies like VYNE and Quit Genius.
20. Worth Capital
Worth Capital’s Start-Up Series Fund focuses on B2B and B2C market innovations. With investments up to £250,000, Worth Capital has backed firms like Uniblock and Virtue Health, fostering habitual consumption and strong brand loyalty.
Conclusion
Investing in the top EIS funds 2023 offers a unique blend of high growth potential and valuable tax incentives. By selecting from these top 20 funds, investors can strategically enhance their portfolios while supporting the UK’s vibrant startup ecosystem.
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