19-Sep-18

Bringing a challenge led approach to venture capital Investing

In September 2018, Triple Point launched its Venture Fund, a new share class in the successful Triple Point VCT 2011 plc. The Fund is designed to generate significant returns for investors through a distinctive challenge led investment strategy.

Traditional Venture Investing

Traditional venture investing focuses on researching a broad cohort of companies and seeking to identify those businesses that are likely to be successful. However, this analysis cannot always predict whether there is a genuine demand for a product or service and whether there is a market fit. Research has shown that over 40% of start-ups fail because they have the wrong business model, their product is not successful, or there is no market need.

A Challenge Led Approach

The Venture Fund’s challenge-led investment approach seeks to addresses these issues  by drawing on the reach and expertise of the Triple Point Venture Network. The Network encompasses a range of corporate innovators , growth consultants and entrepreneurs and has a base of some 5,000 innovative companies, which have the potential to help in excess of the 100 large corporations already working with the Network.

The Venture Fund looks to maximise financial returns by investing in innovative businesses, which are working with the Network and that already have contracts with large corporates to help them solve some of the key business issues they face.

By focusing on growth businesses that have an established market fit for their products and contracts with large corporates, the Fund addresses one of the most significant risks of early stage venture capital, by investing for targeted growth and enhanced portfolio returns.

The Fund

The Venture Fund is targeting a substantial deployment of investment funds over a 12 to 24 month timeframe. It is seeking to raise an initial £15m with a further £15m over-allotment facility and will aim to offer investors a portfolio of 20+ innovative companies with significant growth opportunity and the potential to achieve a return of between 5x to 10x. Investors will also enjoy 30% upfront income tax relief on their investments and tax-free growth. It builds on Triple Point’s strong 15-year track record of early stage investing with a very successful, distinctive approach.

The offer is available until 30 August 2019, for a minimum investment of £3,000. Triple Point seeks to align its interests with investors and maximise returns by limiting costs. The fund’s annual running costs are capped at 3.5% of net asset value (NAV The Venture Fund targets a 3p per share dividend in the first two years and up to 5p per share per annum in the years thereafter, subject to successful realisation.

The Venture Network Investment team is led by Ian McLennan, a partner of Triple Point and supported by a team experienced in venture capital investing. Triple Point, with over £900 million in assets under management has a strong track record in tax efficient VCT and EIS investing. 

Risk Warning: The Triple Venture Fund carries all the risks of investment in smaller companies. Your capital is at risk. There is no guarantee that target returns will be achieved and investors may get back less than they invested. Tax rules and reliefs are subject to change

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