Good evening all and thank you for a discussion about the EIS100 Fund. As many of you have eluded to this is single investment decision to build a diversified portfolio of early stage equity.
Many of the topics raised here have been raised on Seedrs by investors and on the Fund’s discussion forum, we welcome many more questions as you think of them.
@saf thank you for pointing to the Portfolio Update. Industry data and our own points to diversification being a key driver of positive outcomes in the asset class. In the absence of any true beta, the EIS100 Fund has been designed as curated beta. Like many institutional investors, Seedrs rejects 95% of the deals we see and the majority of deals are co-investments with institutional investors.
I appreciate your comparison to Auto-Invest. Our plan is to ensure all investors have the appropriate tools to meet individual needs. To date we have been successful in helping the self-directed investor (many Freetrade users) originate and invest in deals to build their portfolios. As our deal flow continues to grow, Auto-Invest provides investors the options to help refine the deals that meet their personal investment preferences. These we’d view as active and quasi-active approaches. We also have a long tail of investors, or advisors of investors, who don’t have the time or inclination to view each deal - they have expressed interest in the asset class and investor demand for this solution has helped drive the build of the EIS100 Fund.
Regarding other Fund campaigns, please do get in touch with our team. We are working to provide more investment opportunities that meet investors needs and keen to hear more feedback on your interest in the Seedcamp round and others like Fuel, Pi Labs or Collider.
We can only address two users in first post - (@Dave +_rarther +_freetrade_cal) As above the Fund has been created based on investors needs, and as you’ll all know not all investors needs or views are the same. The Fund deployment logic certainly isn’t small print, investors and entrepreneurs have full visibility on the investment criteria. The deployment logic and algorithm to allow the Fund to invest and maintain a fixed % in all eligible campaigns sound straight-forward but required a lot of build. There is deliberately no discretion after the Fund begins deployment as a passive Fund needs to deploy passively and dispassionately. What we do no from our own data is many investors who build portfolios have had a good run on Seedrs, there are also plenty who have not. As with VCs the spread between top and bottom quartile performance is huge. This volatility drops considerably as portfolio sizes increase.
Seedrs Secondary Market is the piece that truly differentiates the platform and the experience for investors in the Fund. Whereby individuals circumstances are unique, the option for liquidity and investor exits is something that has not existed in other EIS Funds to date.
We welcome investor feedback on this and are willing to answer all question posted on the Fund Campaign. The Fund logic is a new investment solution for investors who aren’t actively seeking to build their portfolios or want a tool to help diversify their early stage equity portfolio. The underlying investors will receive the same benefits as other Seedrs investors from investing through the Seedrs platform, the investee companies will have the same benefits of capital from the Fund and other investors as well as the ongoing benefits of being a Seedrs Alumni company.
In addition to bring your thoughts and discussions to the Fund campaign, questions can also be sent to EIS100@seedrs.com.