At NEX Exchange, we are starting to enjoy increasing interest among specialist funds that want to raise money for companies, both pre-IPO and once public.
For investors, funds provide exposure to a portfolio of investments according to a sector, size, or with a specific tax advantage.
Increasingly, funds provide an overlap with venture capital and private equity.
As an alternative to investing directly, funds may offer exposure to a spread of small cap investments, while also diversifying risk.
Traditionally funds such as Miton have provided exposure to SMEs, however, the area is now opening to new entrants, some of which have a particular focus on investments which would be eligible for tax reliefs under the Enterprise Investment Scheme or Seed Enterprise Scheme.
The Startup Funding Club’s Angel Fund is an example of a fund in this space. It uses a unique coinvestment model with an active angel syndicate, offering investors a diversified portfolio of high potential emerging businesses which are eligible under the Enterprise Investment Scheme or Seed Enterprise Investment Schemes. Startup Funding Club invests cross-sector, in between 10 and 15 companies which show high growth potential but that also provide post investment support through a network of partners, to help support each company’s growth.
First Sentinel, featured below, enables investor access to listed companies, with a focus on secured loan structures, but also primary and secondary equity market transactions which could be invested in via a Self-Invested Pension Plan. At NEX Exchange we are also talking to other new funds that are specifically interested in investing in our segment.
Initial Coin Offerings are also being looked to by startups in the blockchain space as a fundraising tool, using their own crypto or digital currencies.
Patrick Birley, Chief Executive of NEX Exchange