Mercia EIS Funds
Mercia’s EIS Funds have an investment-led venture capital strategy, investing nationally with a focus on the underserved regions; specialising in the identification, creation, funding and scaling of innovative technology businesses with high growth potential, creating a strong investment proposition.
Mercia has an Investment Team of industry specialists with venture capital expertise, working extensively with portfolio companies to scale each business with the aim of ultimately delivering shareholder returns.
Mercia can fund companies with different pools of capital, initially via its own EIS Funds or other third-party funds, and then selectively using Mercia’s proprietary capital. Mercia is therefore able to provide a ‘Complete Capital Solution’ for entrepreneurs and small companies, starting from seed rounds of £100,000, larger rounds of up to £2.0million, and building to funding rounds of £10.0million.
|Minimum Investment: £25,000
Target portfolio size: Approximately 15 companies
|Deployment timeframe: Each EIS fund aims to be fully invested within 12 months of the fund closing|
|Target performance: Mercia aims to triple invested capital (including income tax relief and loss relief)|
|Closing dates: We always have an EIS Fund open, with funds closing at the end of March, June and December of each year|
|To retain the tax reliefs, investors must hold the investment for a minimum of three years, with holding periods expected to be five to seven years|
|Our funds are unapproved by HMRC, meaning you can claim the tax reliefs based on when each underlying investment is made. Each company in the fund will have received advanced assurance prior to an investment being made|
|Investments are made into sectors which have modest capital requirements but high growth potential|
Mercia always has an EIS fund open:
Within each diversified venture capital portfolio, we expect some companies to return between 5x to 10x invested capital, but also for some to fail, and some returns will be in-between these two extremes. Based upon our experience, we expect to return 3x invested capital to investors over a five to seven year period (including tax relief). Please note that past performance is no guide to the future performance of funds. The chart below illustrates a simplistic example in which a client invests £150,000 in an EIS fund, with 15 underlying investments of £10,000 in technology companies.
Chart - Investment example - this is a model portfolio, a simplified illustration of our portfolio strategy, and investments will not be equally weighted