HAATCH SEIS Fund, which Focuses on B2B SaaS Firms, Raises £377K+ via Crowdcube

HAATCH SEIS Fund is an SEIS fund focused “on accelerating Pre-Seed B2B SaaS companies to their first £1m ARR and building the infrastructure to get to £10m+.”

HAATCH SEIS Fund has raised £377,873 in capital via Crowdcube from 121 investors (at the time of writing) with 21 days remaining in the firm’s crowdfunding campaign.

The firm notes that SEIS benefits of 50% income tax-relief & tax-free capital gains are “subject to individual circumstances.”

The firm reports 3 business exits, “including one for 276x.”

The company has an entrepreneurial team who “have built and sold their own businesses for over £100m.” Haatch invests £60k of capital “from British Business Investments alongside every SEIS investment.”

Driven by the frustration of trying to find investors “with entrepreneurial backgrounds, Scott Weavers-Wright OBE and Fred Soneya founded Haatch.”

They leveraged their experience “building and exiting one of the UK’s early successful eCommerce-technology businesses to invest in 10 companies, which formed the Haatch Angel Fund.”

The Haatch Angel Fund exceeded targets, “with highlights including Veritonic raising their $7.5m Series A at a 22x uplift from the valuation of Haatch Angel’s original investment; Elevaate returning over 276x to Haatch Angel from its SEIS investment; and Iterate AI now a double-digit million annual recurring revenue business growing 100% year-over-year, Haatch having initially invested when they were pre-revenue.”

Fueled by their successes, they launched their Seed investment strategy in 2018 “through our EIS funds and expanded our team.”

Since then, they’ve invested in “over 70 companies across the UK, Ireland, and Europe in different business models and industries and uncovered three truths from our successes and failures.”

  • Business operators and founders with experience taking companies from 0-to-1 are the most valuable support to Founders in their early days.
  • Sales and product are the most important levers and the hardest to get right before a business can scale.
  • Pain is the biggest driver of a purchasing decision for a buyer and creates long-lasting lifetime value.

With these truths and other learnings, they’ve evolved strategically “into a Pre-Seed & Seed investment fund investing in B2B software, solving deep pains and/or creating massive impact for organizations.”

Haatch funds can also leverage the support of “over 600 entrepreneurs, business leaders, and C-suite executives who have invested in one of our funds, from companies with billions of revenue and bring it to bear on their portfolio companies.”

Investment Strategy

As previous serial entrepreneurs, they’re practical investors “focusing not on industries but on ruthlessly seeking out founders with market-product fit.”

They believe product “should first identify a customer and problem and then be built to solve that problem; they call it market-led, and how well the problem maps to the customer needs is market-product fit.”

They back founders that have lived and breathed “the problem and empower them to paint the picture for them.”

They take time to understand “what their customer looks like and map the customer pain before getting into the product.”

Their portfolio success has been biased “towards B2B software companies.”‘

They have observed several aspects of this model, which make it a compelling model:

  • Scalability. Once the software is developed, the incremental costs of adding new customers are minimal.
  • There’s a playbook for how to build and scale software companies so that we can benchmark performance.
  • High growth potential. Once you’ve developed the customer, the high margins can be an efficient source of capital for future growth.

The Fund will only invest in companies which “have received advanced SEIS assurance from HMRC.”

SEIS-qualifying companies must “be less than three years old, have fewer than 25 employees, gross assets of less than £350,000 and can receive no more than £250,000 funding through SEIS.”

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