In the latest episode of the EIS and VC Basics mini-series for The EIS Navigator, we discuss how companies can find the right EIS or VCT manager for investment. Symvan Capital has been investing through EIS for over a decade so has seen what happens when companies handle it well and badly. Investment Manager, Michael Theodosiou, talks us through the angles.
Michael covers lots of important issues for founders and management. These include:
It can seem daunting to a founder who is new to fundraising, but with a little guidance they can manage an effective process without making it too complicated. Enjoy!
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Read about the tax relief schemes for venture trusts on the HMRC website.
Check out the Symvan Capital website
Michael Theodosiou, Investment Manager at Symvan Capital, originally read English at UCL, and trained as a barrister. After receiving his LLB and being called to the Bar, he quickly became disillusioned with a career in law and began looking for something dynamic and compatible with his passion for creative problem-solving. A chance introduction to Symvan’s founders led to a two-month internship for some work experience. Now, nearly a decade later, his role as Investment Manager continues to inspire him.
Michael’s role spans all aspects of Investment Management from sourcing potential investee companies, filtering them, conducting due diligence, negotiating terms, preparing investment recommendations for the Investment Committee and, most importantly, providing ongoing support to Symvan Capital’s portfolio companies. Michael has a particular interest in legal and education tech companies, but works best with very early-stage companies, where the challenges are more diverse and less industry-specific.
Q: What should founders consider before seeking venture capital funding?
Founders should first clarify their business goals and what they want to achieve with external investment. Funding is a means to an end, not a goal in itself. It’s important to determine if venture capital is necessary at that stage, or if bootstrapping might be a better option to de-risk the business and show commitment.
Q: How do founders start identifying suitable fund managers?
Founders should do research to narrow down fund managers by high-level criteria such as sector focus (software, deep tech, life sciences, etc.) and stage of investment (pre-seed, SEIS, EIS, Series A, etc.). Resources like EISA independent fund reviews and fund websites are useful starting points.
Q: When should a company approach a fund manager?
Typically, companies should start the process between three and six months before they need the investment. Fundraising works best when the company isn’t desperate, giving founders flexibility in negotiations and time to carefully assess options. Timing relative to tax years can also be important for SEIS/EIS funds.
Q: What’s the best way to approach a fund manager?
Warm introductions are most effective. If that isn’t possible, tailored emails with clear information about your company and its alignment with the fund’s focus are better than generic “Dear team” messages. Researching portfolio companies and speaking to founders in those portfolios can also help secure warmer introductions.
Q: How should founders compare different fund managers once they have multiple options?
Founders should clearly define what they want and assess term sheets against those requirements. Key considerations include fees, value-add services, degree of involvement (hands-on vs. hands-off), consent rights, reporting obligations and long-term alignment. It’s about more than just price – the relationship and fit matter for the duration of the investment.
Q: What kind of support can founders expect from different managers?
Some fund managers are hands-on, providing strategic advice, networking, and operational support, while others are more hands-off and simply provide capital. Understanding what level of engagement you need as a founder is critical. Customer references from other portfolio companies can reveal whether a fund manager genuinely delivers on their promises.
Please note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.
