How to apply for this EIS

  1. Click on the Download button below to obtain all relevant literature.
  2. Read all the literature provided in full, ensuring you’re happy to proceed.
  3. Post the completed forms along with two valid forms of ID, and a cheque made payable to the provider, to: WealthMe, PO Box 362, Burgess Hill, West Sussex, RH15 5BH.

Free EIS Guide

Download our free & comprehensive guide to EIS. All investment decisions must be made solely on the fund's prospectus.


Fund title: Nova Cofoundery SEIS & EIS Fund

Overview

The Nova team have spent the last 10 years developing an operating model that increases portfolio return rates by reducing both the failure rate of portfolio companies and the capital lost to failures. Unlike most fund managers Nova employ a team of nearly 180 digital professionals experienced in developing digital products and working with start-ups. Nova’s leadership team include serial technology entrepreneur Andy Davidson and collectively have hundreds of years of relevant experience. Further they are advised by shareholder and globally renowned business leader Sir Terry Leahy, veteran technology investor Bill Currie and specialist in innovation Prof. Paul Morrissey.

The Fund is an opportunity to invest alongside Nova in their portfolio of early-stage knowledge intensive companies.

Nova accepts the available data that suggests:

  • Companies within the UK knowledge intensive market segment are growing on average at 34% year on year
  • 92% of these technology startups typically fail within 3 years
  • 80% of the mistakes that startups make are accounted for by 5 major errors

Members of the Nova team have spent the last 10 years developing their Cofoundery model in order to access this 34% year on year market growth while minimising the risk of losses due to the high 92% failure rate of companies within this market.

The Cofoundery model works by operationally addressing 5 of the most common mistakes which account for 80% of all the mistakes which startups make:

  • Building something nobody wants
  • Having the wrong cofounders
  • Hiring the wrong people
  • Failing to execute sales and marketing
  • Chasing investors and not customers

This in turn reduces the failure rate of individual companies within the portfolio.

Each investors funds are co-invested alongside Nova into a diversified cohort of at least ten early-stage knowledge-intensive companies within Nova’s portfolio. This diversification is large enough to reasonably mitigate the risk of failure across the whole cohort.

The Fund further reduces investor risk and increases returns by allowing the investor to take advantage of considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Scheme or Enterprise Investment Scheme providing that the investor is a UK tax payer.

Nova takes a digital approach to deal with origination and a mentorship-based approach to founder due diligence, regularly appraising over 25 opportunities before making an investment.

As you would expect, Nova’s portfolio data reflects their improvement on market norms:

  • Portfolio value growth of 83% year on year
  • 54% of portfolio companies fail within 3 years

When combined with the SEIS or EIS benefits offered by the Fund, this makes a compelling proposition for Investors:

  • A 0.2% chance of every company in the cohort failing
  • A minimum return of 58p in the £1 in the unlikely event that every company in the cohort fails[iv]
  • Target returns of £2.18 in the £1 based on targeted 20% year on year portfolio growth
  • Returns of £5.70 in the £1 if portfolio growth continues at 83%

*Rebate - Total 2% - ie Initial commission rebate of 3%. However, the initial WealthMe Arrangement Fee of 1% is paid by the product provider from your Initial commission.

If applicable, we will ask the product provider to reinvest any initial or trail commission back into your plan. This will be either in the form of a reduction in their charges or an enhancement of additional shares. However if this cannot be facilitated, they will pay any initial or trail commission to WealthMe. We will then pay any surplus initial commission immediately back to the recipient. Any trail commission we receive will be paid to the recipient in January based on the amount received in the previous year (subject to a £10 administration fee). All initial and trail rebates will be paid net of basic rate tax and are to be treated as taxable income by the recipient as stipulated by HMRC.

Fund type:

New Fund

Miniumum investment

£10,000

Initial Charges

0%

WealthMe Arrangement Fee

1%

Expected Close date

Evergreen

Funds Raised and sought

£7.8m of £7m

Rebate

2.00%



Important Information
The information given here has been taken from the product terms and conditions, brochure, and other literature available from the product provider. However, no guarantee can be made to the accuracy of the information. You should therefore satisfy yourself as to the full terms and risks of any investment by reference to the relevant materials provided by the product provider. In the unlikely event of any discrepancy between the information shown here and that provided in the provider literature, the product literature shall prevail. All investment involves risk and you could lose some or all of the money you invest.