Crowdcube, the world's largest equity crowdfunding platform, has launched the first managed investment fund for people who want to buy shares in start-up or early-stage British businesses.
The Fund will enable them to build a portfolio of equity investments selected by a professional fund manager from those businesses listed on Crowdcube.
The Crowdcube Venture Fund will be managed by Strathtay Ventures, a wholly owned subsidiary of the established, stock-market quoted Braveheart Investment Group ('Braveheart') as part of a partnership agreement signed this week. Braveheart currently has around £120m of funds under management across various regional and national funds.
The Fund has been designed to suit people who want to invest in start-up and early stage businesses but perhaps lack the resources and/or time commitment to fully research and review pitches, carry out their own due diligence, and build structured, balanced portfolios.
Darren Westlake, CEO and co-founder of Crowdcube, comments: "Our aim is to provide everyday investors with choice. Our 57,000 investors can already select businesses that appeal to them by the sector, amount of funding sought or a number of other criteria. Now we're giving them the option to invest in a fully managed fund. This will appeal to investors who love the idea of equity crowdfunding as part of their investment strategy but don't have the time, or inclination, to fully research opportunities and create their own diversified portfolio."
The Crowdcube Venture Fund will typically invest in businesses which are registered for EIS/SEIS tax reliefs.
The minimum individual subscription in the fund is £2,500. In addition, Investors can top-up their investment over the two-year initial investment period. Investors eligible for the fund pay an annual management fee and an initial set up charge.
The Crowdcube Venture Fund aims to build balanced portfolios for investors who can expect returns to come from portfolio companies by way of trade sales, IPOs and licensing deals.
Geoffrey Thomson, Chief Executive of Braveheart, said "We are excited to link up with Crowdcube and this new approach to investing. There are a large number of investors who like the crowd funding concept but who, for one reason or another, find the DIY route problematic. We hope they find this new initiative of interest."
Crowdcube has more than 57,000 investors in the UK and is named one of the hottest FinTech firms in Europe.