Fund Twenty8 follows the decisions of sophisticated private and professional investors to automatically build 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: no fewer than 28. With this many startups in your portfolio, the study suggests a 95% chance of at least one giving you a return of 10X or more. With this in mind, the fund is targeting a return of over 20% IRR, including up to 30% EIS tax relief.
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.
Fund Twenty8 investor
While traditional EIS 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.
Now in its fourth year, Fund Twenty8 has:
- 426 investors
- Invested a total of £8.54m
- Diversified over 58 investments
- Across 13 sectors
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.
Fund Twenty8 investor
Invest alongside lead investors
Mitigate risk by building a sector-agnostic and diversified portfolio across no fewer than 28 Qualifying Investments
Target development capital in companies that are:
- Ideally in revenue, which can provide shorter times to exit
- Usually pre-profit
- Able to demonstrate strong and established management teams with proven business credentials
- Aiming to generate an IRR of 20% or more (inc EIS)
- EIS eligible at the time of investment and the Manager will seek to retain EIS eligibility as appropriate
For full details of the investment strategy, view Fund Twenty8’s investment page.