Portfolio Strategy and diversification
The Fund will aim to invest in 20+ companies (a minimum of 10) providing a well-diversified portfolio.
Investments will be made across accelerator, pre-seed and seed stages, sourced through new applications to BGV’s accelerator and also from high potential companies within BGV’s existing portfolio.
At least 75% of the investment in the portfolio will aim to be eligible for SEIS relief with the remaining investments aiming to be eligible for EIS relief.
|Typical time from start-up||0-6 months||12-18 months||24 months|
|Typical investment size||£20k for 6% equity||£50k for ~5% equity||£100k for ~ 3% equity|
|Expected tax eligibility||SEIS||EIS||EIS|
Early stage investing requires a patient outlook. We expect successful exits from our investments seven years to ten years after our first investment.
Typically our exit hypothesis will be the acquisition of the portfolio by an established incumbent in the market or established large business entering a new market. An exit to another investor in a secondary transaction may also be possible where the portfolio company continues to raise further rounds of investment.