The EMVC Evergreen EIS fund focuses on deeptech and life science companies with investments mostly at late seed to Series A. It follows two strategies within its investments. Venture build companies are more established companies that have hit meaningful challenges. EMV Capital gets heavily involved in rebuilding the companies. Alongside this, the co-investment strategy is more similar to other VCs. The manager is AIM-listed, with on balance sheet and institutional funds also under management. Most investments will be follow-ons into companies held in the existing investment pools, with post-investment support from its in-house team and partners.

Why invest

Positives

• Strategy:  Exposure to a portfolio of deeptech and life science companies at seed to series A co-investing alongside other group capital pools.

Issues

• Track record:  The fund has a limited track record with no exits yet, although the parent company has several successful exits.

The investment manager

Positives

• Team:  The team has a wide range of experience, with strengths in intellectual property, strategy & corporate finance.

Issues

• Team size:  While the team is adequate for current operations, it is relatively small and may need expansion if AUM grows further.

Nuts & bolts

• Duration: The fund is evergreen, with no formal closings, and investors simply participate in the deal flow after investment.
• Diversification: The manager aims to provide up to eight roughly equal investments for each investor subscription.
• Valuation:  Updated quarterly following IPEV guidelines but usually based on latest transaction price.

Fees

• Fees: A combination of an upfront direct fee and company charges.
• Performance fee:  Charged at 20% +VAT on aggregate returns over 110% of invested capital.

Risks

• Target returns: The target return is 3x invested capital, which suggests a high-risk investment strategy and consistent with an early-stage VC strategy.
• Companies:  Supplying risk capital to early-stage deeptech and life science companies. There will be a spread of company returns, as the successful ones will do very well, but those that fail may do so completely.