Equity crowdfunding platform Crowdcube announced the creation of a venture fund last year. The concept was to allow a professional fund manager do all the hard work in creating a diversified portfolio. As we all know investing in early-stage companies is risky business but a highly diversified portfolio may generate solid returns. Crowdcube partnered with Strathtay Ventures, a firm with with over 15 years experience. Established in 1997, Strathtay Ventures is the investment management subsidiary of Braveheart Investment Group. The Group had at approximately £120m of funds under management across various regional and national funds. In November of 2014, Braveheart / Crowdcube announced its first four investments. Today things have changed.
According to a company representative, Braveheart Investment Group has formerly partnered with Seedrs and what has been previously known as the Crowdcube Venture Fund, will now be labeled “Strathtay Fund in association with Seedrs”.
Braveheart CEO Geoffrey Thomson was quoted on the shift;
“Seedrs is an outstanding platform with considerable investment expertise. Working with Seedrs will allow us to get exposure to its strong network of high growth companies while taking advantage of its highly effective investment processes. We know we’re in good hands partnering with the Seedrs team, and we look forward to working together as we build this relationship.”
Seedrs and Crowdcube have always been the best of competitors – leading the investment crowdfunding space in the UK. A Seedrs spokesperson said their platform closed more deals in 2014 than any other equity crowdfunding platform in Europe. Co-founded by CEO Jeff Lynn, he was quoted on the new arrangement saying;
“Braveheart is an experienced institutional investment manager with a strong and tangible track record of investing into ambitious, growth focused businesses. We are delighted that it has decided to move to Seedrs, and we very much look forward to providing it with the very highest level of service and professionalism.”
Crowdcube representatives responded to the change of events, stating managed funds are still part of their strategy;
“Managed funds will continue to be a key part of Crowdcube’s strategy to offer real choice and flexibility for investors. Crowdcube will also continue to be a partner of the London Co-Investment Fund (LCIF) with an allocation of £5 million to co-invest in London’s top technology and digital start-ups,” stated Luke Lang co-founder of Crowdcube.
“Stuart Nicol, who has 15 years’ experience managing funds for investors at companies such as Octopus Investments, joined our executive board of directors in November 2014 with the task of reinvigorating our EIS Fund. This process is now well underway as we seek to improve the pace of investment and investor experience. Our new EIS Fund, which is planned to launch later this year, will still give the opportunity to have an experienced, objective and qualified professional fund manager make tax efficient investment decisions on their behalf.”