SuperSeed Venture Fund

SuperSeed Venture Fund

STRUCTUREFund
MIN. INVESTMENT£10,000
SECTORTechnology (Software)
CLOSING DATE31 January 2021
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 SuperSeed Ventures who are authorised and regulated by the Financial Conduct Authority under firm registration number 920283.
SuperSeed Ventures

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

Summary

SuperSeed Ventures was built to be the kind of fund the Partners always wanted to be backed by. Using their expertise gained; the experiences shared; and the errors they've made to develop a specific approach to creating impact. SuperSeed is an early-stage venture fund with a clear conviction, that:

"founders who apply emerging technologies to challenge the way business works will be the most powerful engine of change over the next decade."

They invest in technical founders who are seeking to solve real problems with unreal ambitions.

In Enterprise Software, Industry 4.0 and Deep Tech.

The Fund seeks to provide investors with a portfolio of 8-12 start-ups per annum, in order to return >3x capital invested over a 5-7 year period. SuperSeed works closely with more than 50 incubators and early-stage accelerators across the UK, Europe and Israel, and from this, continuously identifies a selection of ambitious businesses which form the pipeline of potential investment opportunities.


What do SuperSeed invest in?  Here is an example portfolio company, www.Kluster.com

Highlights

  • SuperSeed: investment fund with a mission to drive enterprise AI / software start-ups to break through to their first £million in sales.
  • Support start-ups in developing a repeatable, scalable and profitable growth model.
  • Entrepreneur led. SuperSeed’s partners have founded or invested in 8 technology companies that have successfully exited
  • Fund offers investors access to a diversified portfolio of B2B Software and AI start -ups that demonstrate potential for high-growth.
  • Targets >3x return over a 5-7 year investment period (>20% annual return)

Investment strategy

In the US 60% of VCs have experienced startups first hand but in the UK that is only 8%, we are entrepreneurs investing in entrepreneurs. 

SuperSeed invests in early-stage B2B SaaS and AI companies and we are hyper-focused on using our first-hand knowledge to select companies that have what it takes to grow revenue rapidly on a pathway to exit.

With poor distribution being the number one killer of startups, we apply significant focus on sales, both pre and post investment. We like to prove market demand before investment, often actually selling the prospective investee’s products before investment.

We select investments based on our deep sector expertise and invest pre-Series A when valuations are still attractive. The partners have 8 exits under their belts already, 4 as investors and 4 as entrepreneurs. The partners have founded, grown and exited 4 companies generating exit proceeds in excess of £25m.

Summary:

• Diversified portfolio of 8-12 Investments

• Access to AI/SaaS startups with potential for high growth

• Possible risk reduction through SuperSeed’s support for portfolio companies

• Targeting >3x return, with up to 6.6x net tax free under EIS (over 5-7 years)

• EIS eligible (45% taxpayer risks only 38.5p per £1 investment)

• Co-Investment possibilities

Exit strategy

It is expected that positions will be held for between 3 to 7 years from the date the investment was made. The likelihood of an exit cannot be prescribed at the point of investment. However, at the appropriate time and if exit opportunities for an investment are available, SuperSeed will on a discretionary basis evaluate whether an exit opportunity is likely to deliver the highest risk-adjusted return for Investors. Not all exit opportunities may qualify for EIS relief. However, SuperSeed will look to gain the most value for Investors by taking EIS relief into account.

The active monitoring of companies is crucial for the timing of portfolio divestment, and therefore SuperSeed proactively explores exit strategies with investee companies before making investments. It is possible that some exits may occur prior to the 3 to 7 year period depending on market conditions and the context of the investee company. SuperSeed anticipates the most likely method of exit will be through trade sales, although all options will be considered closely. Initial Public Offering (IPO) will often see the most lucrative returns for the investors, although this is dependent on the market sentiment and economy at that time. As SuperSeed invest at early stage, it is likely that most Investee companies will require follow-on financing. To facilitate this, SuperSeed has strong relationships with a wide range of institutional investors such as ADV, Newable, Augmentum and many others.

The most likely exit opportunities are as follows:

• Trade sale to another company.

• IPO on a public stock exchange.

• The introduction of new investors to the investee company who buy shares from the fund.

• Acquisition of the intellectual property rights of the investee company (determined by an independent valuer).

• Purchase of the shares by investee company shareholders (Buyback).

• Sale or part sale of shares in an investee company on a secondary market.

Risks

Investing in early stage companies should be considered high risk and investors should only invest in the fund what they are prepared to lose without impacting their lifestyle and retirement plans.

Investors may not receive back the full amount that they have invested in the fund. The value of each investment made by the Fund may fall, and there is no guarantee that an investment may not lose all of its value. All investors’ capital is at risk. Accordingly, you should not invest in this product unless you have carefully thought about whether you can afford it and whether it is right for you, having had the opportunity to take independent advice.

Valuation of unquoted companies is inherently difficult as their shares are not publicly traded or freely marketable and relevant information is not always available to accurately determine a value.

Products and services

The fund primarily invests in software companies which in SuperSeed’s assessment are market ready or near market ready, and where significant value can be unlocked if the company can create a scalable, profitable and repeatable sales and distribution model.

Sector focus

SuperSeed will primarily invest in business productivity enhancing software companies, though it may invest in non-enterprise businesses with a data science or AI angle. Sectors which the Fund may invest in include:

• Analytics

• Cloud / Infrastructure

• Computer Vision

• Cybersecurity

• Fintech

• Vertical SaaS

Market approach

The fund invests in companies from across the UK, the wider European technology ecosystem and Israel. Wherever possible, all investments will be made so that they qualify for EIS tax treatment. Where companies originate from outside the UK, particular attention is paid to the investment structure to make sure it is in accordance with HMRC rules and regulations so that it is eligible for EIS relief, although this cannot always be guaranteed.

To qualify for investment, a prospective Investee Company’s business will have, in the opinion of SuperSeed, several of the following features:

1. Strong proprietary technology

2. Benefits from economies of scale

3. Advantageous market timing

4. Large potential market size

5. Strong people/team

6. Route to market or existing sales & distribution

7. Defensibility

8. Proprietary industry insights

Key team

Mads Jensen​ - Managing Partner​

Mads is a successful entrepreneur and passionate technologist (having authored multiple US patents) who has worked for 2 decades building and growing tech businesses. At SuperSeed he helps ambitious technical founders build great companies from the early stages. Prior to SuperSeed, Mads was an entrepreneur, taking Sefaira (a SaaS company) from inception in 2009 to exit in 2016. Before that he was a business executive at IBM.

Dan Bowyer​ - Partner​

Dan has more than 20 years of entrepreneurial experience, having built and exited 2 startups and angel invested in many more. He’s most passionate about connecting people, product and process, creating something from nothing. ​At SuperSeed Dan looks after partnerships and portfolio companies, alongside new and existing investments. ​

Daniel Pitchford - Venture Partner

Daniel is a successful entrepreneur, the co-founder of AI Business, a self-funded start up established in 2014 and exiting to Informa PLC in 2017. AI Business grew to become the world’s largest AI events and news platform. Daniel is also a thought leader on the practical applications of artificial intelligence and the transformative effects of this technology on all major industries, from financial services and retail through to manufacturing, agriculture and healthcare.

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 initial fee of 2% drops to 1% if you invest between £50,000 and £100,000. For investors in excess of £100,000 the initial fee drops to 0%.

The management fee drops from 2.5% to 2% for investors larger than £50,000.

AMC is charged for a period of 5 years with only 3 years taken up front. The remaining 2 years AMC are paid for by returns as and when they occur.

A performance fee of 20% applies if the hurdle rate of 120% is met or exceeded.

In addition, SuperSeed may also charge investee companies arrangement, monitoring, exit, syndication and other corporate advisory or acceleration fees (which could be for cash payment, warrants or options).

VAT is charged where applicable.