MMC EIS Fund

MMC EIS Fund

STRUCTUREFund
MIN. INVESTMENT£25,000
SECTORTechnology
CLOSING DATEEvergreen
Risk score
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7

Synthetic Risk and Reward Indicator (SRRI) is calculated by the fund manager following guidelines set out by the European Securities and Markets Authority (ESMA)

The content below has been provided by MMC Ventures Limited who are authorised and regulated by the Financial Conduct Authority under firm registration number 193704.
MMC Ventures Limited

Investments shown on this site put your capital at risk and should be considered by experienced investors only. Learn more

Summary

Tech companies represent some of the most exciting investment opportunities available. These companies are changing the face of society: challenging and replacing cultural and business norms, popularising new customer behaviours, inventing new industries, creating new jobs, and generating huge value in the process. Transformative technology companies MMC has backed to date include Gousto, Interactive Investor, NewVoiceMedia, Signal AI, Bloom & Wild and Peak.


MMC's investment rate means that MMC EIS investors will be invested in c. 10 companies over 12-18 months across a range of sectors. These investments are a mix of new and follow-on deals giving an investor a diversified spread of portfolio companies along the growth spectrum, reducing concentration risk.

Highlights

  • Targeting to invest in ten companies over a twelve to eighteen month period.
  • MMC Ventures takes a strong co-investment approach alongside a combination of institutional VC’s and super angel investors.
  • Focus on technology enabled businesses in sectors where the UK is a world leader.
  • An award-winning venture capital firm who have been investing in early stage ventures for twenty years
  • More than £65m returned to EIS Fund investors since 2010.
  • Rated as one of the most active venture capital firms in the UK.

Investment strategy

MMC will invest in a portfolio of c. 10 EIS-qualifying companies for investors in the EIS Funds. Each investor’s portfolio will be diversified across multiple subsectors and stages from early stage to growth investments.

MMC focuses on technology-enabled businesses in sectors where the UK is a world leader, particularly financial and business services, business software, digital media and consumer internet. In so doing, the fund has access to deep pools of world-class innovation and talent.

MMC seeks fast-growing, early-stage businesses led by impressive management teams. The fund is looking for companies that use technology to disrupt large markets, transform supply chains, create new customer experiences or reduce the cost to sell or serve. These must be best-in-class businesses with strong growth prospects and the potential to deliver significant capital returns. As a result the fund avoids start-ups, and focuses on revenue-generating businesses with demonstrable commercial traction. The fund also avoids capital intensive businesses and invests when MMC is comfortable that the fund (and any co-investors) have the capital capacity to see the business through to profitability or scale, at which point exits are more easily achieved. 

Typically, MMC invests between £1 million and £3 million in an initial funding round in each company but the fund will support the business, as it grows, through further funding up to around £6 million. This capacity to fund a company right through its early growth stages is one reason why MMC is an attractive source of funding to the best entrepreneurs. It also means that new investor subscriptions participate in follow-on rounds and acquire shares in businesses that have grown under our guidance. 

Exit strategy

MMC invests in companies that are transforming customer behaviour, redefining industries, creating new jobs, and generating huge value. These changes take time and require patient capital. Investors should consider this a long-hold investment with a target exit horizon of 5-8 years.


MMC has a strong track record of realising returns for our investors. Our ability to return capital was bolstered in 2019 as we raised a £100 million fund to invest in our later stage portfolio companies once they have grown beyond EIS investment limits, in the process offering our EIS investors the ability to sell their shares if they wish.


Exits will be structured on a company-by company basis and in a manner which we believe will return the most capital to our investors. Most commonly this will be accomplished through a trade sale or sale to private equity, exploiting our extensive network of contacts. IPO’s are also possible and MMC has prior experience of floating companies on the AIM market. 


MMC has delievered ten profitable exits in the last five years and has returned more than £65m to EIS Fund investors since 2010.


Market approach

Digging Deeper

MMC believes that technology will change the world for the better. We are drawn to the companies that are rethinking fundamentals, redefining the dynamics of their sector, and scaling rapidly. We do our homework, going deeper into

new technologies and emerging business models using our dedicated in-house research capability.


Unique access

We use this research capability to inform our investment hinking and process. Using a proactive deal sourcing model, we run an outreach programme with the most promising companies identified, creating a source of proprietary deal flow. As a result, MMC can give access to the companies utilising these new technologies to create significant value and to offer high potential returns.


Support beyond investment

Building a transformative business is a hard and lonely challenge. We aim, through our expertise and networks, to provide close, long-term support to the companies we back. Each EIS portfolio company is assigned an MMC investment lead, who will typically take a board seat. We assist in areas including international expansion, senior hiring, board construction, access to potential clients, corporate governance, fundraising, bank finance and exit.


Portfolio diversification

Our investment rate means that MMC EIS investors will be invested in c. 10 companies over 12-18 months across a range of sectors. These investments are a mix of new and follow-on deals giving an investor a diversified spread of portfolio companies along the growth spectrum, reducing concentration risk.


Alignment

We seek to align our interests with those of our investors. Members of the MMC team invest in every new EIS investment and have invested more than £13 million to date. 


Keeping you informed

We pride ourselves on providing clear, timely and transparent communications that keep our investors well informed about their investments. We have a dedicated Investor Relations team on hand to support investors and their advisors with any queries or assistance they may require. We offer an online portal where all investment documentation is stored and available to view.

Documents

  • Lorem ipsum dolor
  • Nullam rutrum mauris
  • Mauris rhoncus facilisis

Due to regulatory requirements, only registered investors can access these documents.

Receive access by registering for an account.

Fee summary

The performance fee of 20% of net profits will only start to be collected once MMC have first distributed at least 100% of your original net subscription back to you.


MMC charges an initial fee of 1% for customers investing through an intermediary. For non-advised clients, the initial fee is 3%. There is an annual management fee of 2.5% payable quarterly in advance for years one and two.

The annual management fee of 2.5% for years three to five is accrued and paid on return of capital. By doing this, MMC seeks to ensure that more of the investor’s capital is put to work in EIS qualifying companies. There are no management fees after year five.


There are no custodian, administration, dealing or other charges. 

The performance fee is 20% of the net profit achieved on each investor’s portfolio of investments. The performance fee is payable only after the full amount of the investor’s subscription has been returned.