By following the investment decisions of some of the savviest private investors, Fund Twenty8 automatically builds you a diversified portfolio of no fewer than 28 EIS-qualifying startups.

The fund’s strategy is based on extensive research conducted by NESTA and Intelligent Partnership which asked the question: how many startup investments should I have?

The magic number appears to be: at least 28. With this many startups in your portfolio, the study suggests a 95% chance of at least one giving you a 10X return or more. With this in mind, the fund is targeting a return of over 20% IRR including up to 30% EIS tax relief.

Now in its second year, Fund Twenty8® has already attracted 377 investors, who in total have committed £7.9m.

How it works

Fund Twenty8’s unique algorithm draws on data from the investment decisions of thousands of sophisticated investors to determine which companies to back and how much to invest. It does this by tracking investor appetite on SyndicateRoom and automatically investing alongside them on a proportional basis into successful investment opportunities.

When an investment is seen to attract strong interest from Platform Investors, Fund Twenty8 will increase its allocation into these high-demand deals. In this way, the fund capitalises on the expertise of the lead investors and SyndicateRoom’s 36,000-strong member base.

Special event

The most recent iteration of the fund was launched during a live event in which Dan McCrum, Editor at FT Alphaville, interviewed CIO James Sore to discuss the fund’s performance to date. We were joined by five Fund Twenty8 portfolio businesses. You can watch the recording of the show below.

Fund Twenty8 portfolio businesses featured in the video:

Why 28?

Fund Twenty8 was developed based on industry research into early-stage investment performance by NESTA and Intelligent Partnership, which shows that an early-stage portfolio should contain at least 28 investments in order to have a 95% chance of securing at least one 10x investment.

Nesta report

While similar-sized funds normally invest in just a few companies, covering limited sectors, Fund Twenty8 backs a minimum of 28 per fund, per year, offering truly sector-agnostic diversification.

Fund Twenty8-2016

The first Fund Twenty8 closed in 2017 and has just finished deploying.

  • 233 investors took part
  • Invested a total of £4.55m
  • Diversified over 32 investments
  • Across 10 sectors

Portfolio breakdown

What investors say

Geoffrey Warren

Fund Twenty8-2016 investor

I’ve been investing through SyndicateRoom since the platform started in 2013 and I consider it one of the most reputable platforms around. I’ve built a diverse portfolio, but I find it difficult to pick companies in sectors I’m unfamiliar with.

Fund Twenty8 is terrific as it helps me invest across areas I don’t fully understand and manage that risk.

Emma Collins

Fund Twenty8-2016 investor

I’ve been a member of SyndicateRoom for about a year and wanted to get exposure to early-stage equities, but was unsure how to go about diversifying my investments and which companies to choose.

I invested in Fund Twenty8 because it allows me to invest in this EIS-qualifying opportunities while spreading the risk across lots of companies.

Suraj Rajan

Fund Twenty8-2016 investor

I’ve been investing in individual companies and have built up a sizeable portfolio, but I’d not invested in EIS funds until I discovered Fund Twenty8.

The focus on diversification makes a lot of sense to me and I think that using the personal investment decisions of numerous savvy investors to deploy capital is a very clever model.

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