SyndicateRoom’s Fund Twenty8, a highly diversified fund that back early stage companies, is preparing to open up for investment. The concept was launched in 2016 to allow passive investors the opportunity to back EIS eligible companies in an easy and efficient manner. Fund Twenty8 (2016) raised over £4.5 million from 233 investors. Existing data supports the theory that investors in early stage companies can capture a high rate of return – as long as they are highly diversified. The name references the minimum number of companies expected to be included in the fund thus achieving a high degree of diversification.
This year, SyndicateRoom will be offering a choice of two different EIS funds. There is a caveat though, the Funds will initially be opened up to existing investors. Once the existing investors have an opportunity to invest, then the Funds will be opened up to a wider audience.
SyndicateRoom indicated that both Funds will be capped at £9 million. The crowdfunding platform wants to maintain a level in which they are confident they can deploy the money effectively.
Both funds will seek to accomplish a return of 20% IRR, inclusive of the EIS tax benefit. If you are interested, SyndicateRoom should be posting a waiting list in which you express your interest to participate. Existing investors may sign up at some point next week.
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