What type of business will the fund invest in?
IXCEL Socio Economic Enterprises Venture Fund provides equity or quasi-equity investments of between $10K and $500k into selected startups. The fund will provide up to 100% (although preference will be a smaller proportion) of the capital in investment below $50K.
Our preference is for early cash generating business and it is essential they agree to our support based model allowing us strategic and operational advisor role in their business.
Overall size of the funding round proposed needs to be significant enough to properly fund the business and to allow for the cost of proper due diligence and legal advice to be born by the business and may be payable to IXCEL or its advisors. The investment needs to be a new investment or supporting an existing investment. Once invested IXCEL Equity will be able to make follow-on investments into companies that are already within its portfolio subject to meeting its investment criteria.
Investee companies must also fall within the European Commission SME definition (headcount not exceeding 250, turnover not exceeding €50M and balance sheet assets not exceeding € 43M).
Investee businesses can be from within any industrial sector and whilst it is anticipated that the majority of beneficiaries will be early stage high growth companies, SMEs at any stage of their lifecycle are eligible providing they have the required level of investment from an angel syndicate.
Investment Terms
The fund will, agree the structure and price of any investment and will invest in equity (or equity-like instruments). It is anticipated that many investments will be compliant with the Enterprise Investment Scheme (EIS) but this is not a criteria for funding.
Subsequent Funding Rounds and New Opportunities
IXCEL Socio Economic Enterprises Venture Fund is able to participate in all future investment rounds for the portfolio company. Initial and all follow-on investments will be subject to established KYC process, the approval of the Investment Committee and our Global Business Advisory Group.