The SidebySide EIS Venture Fund

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The SidebySide Partnership is an EIS Venture Capital firm that invests and mentors fast-growing technology businesses that are already generating millions in revenue. Our fund is run by serial entrepreneurs responsible for over $1.5bn in exits.

  • £10,000
    MIN. INVESTMENT
  • 01.04.21
    TRANCHE CLOSE
  • Technology (Software)
    SECTOR

HANDS-ON MODEL:

SBS self-limit to investing in only ten to twelve companies and meet with each portfolio company up to 2 days a month to ensure each company’s management team has regular access to relevant advice in order to help them grow and give them the best chances to succeed.

EXPERIENCED MANAGEMENT:

SBS is led by John Bailye, a serial entrepreneur and technology veteran. John’s previous experience includes founding and building a billion-dollar business from start-up. Investment experience including 40+ company investments and an ROI of 12x of the last 35 years.

CO-INVESTMENT BY THE SIDE BY SIDE PARTNERSHIP:

Members of the SBS team may co-invest their own capital in up to 10% of the Fund’s investments in the Fund itself, Alongside and on the same terms as investors.

COMPETITIVE FEES:

SBS has the highest performance hurdle in the market (150%). This means SBS are entirely focused on only building the best companies in their portfolio and working to achieve the best returns for investors and founders together side by side.

Application Process Update

In light of events happening around the world, managers have been revising their application acceptance procedures in close co-ordination with Custodians to ensure applications and funds are processed efficiently. Once you have submitted your application to CoInvestor a member of staff will contact you directly with further instructions for the relevant fund manager.

Highlights

  • The Fund targets a return of £3.00 per £1 invested and will seek an exit after a 5-8 year investment term
  • 100% EIS relief on investment. No initial/ongoing fees charged to Investors
  • Unique EIS fund, run by entrepreneurs responsible for $1.5bn+ in exits
  • Focus on fast-growing technology businesses with £1-10 million in revenue
  • John Bailye, Founder and CEO of Dendrite (Nasdaq: DRTE), sold for $780m

Market approach

Although the UK scores third globally in a ranking of the number of startups created, we don’t make it into the top ten when it comes to businesses that grow into established companies that have a lasting impact on our economy.

This is our focus and why we formed the SidebySide Partnership.

Our management team are not solely investment analysts, they are operators who have founded, built and invested in over 40+ companies over the past 30 years, Delivering ROI on directly managed businesses of 12x, resulting in exits to the tune of $1.5bn.

The Fund will look to invest in later stage EIS companies with an established customer base and at least £1m in revenue, led by driven teams who dream big. Whilst there is a lot of excitement in backing "the man or woman in their shed with the next bright idea" type of business, our strategy is to find companies in the next stage of growth to somewhat mitigate the risk and volatility of backing pure start-up companies.

Investment strategy

We invest in fast-growing technology-enabled businesses with £1-10 million in revenue. These more established companies will usually be at least several years old and typically have over 30 employees. We look for companies where there is evidence of a strong customer acceptance of the product and service offered, and where we believe we can add substantively to the knowledge and experience of the management team as the company grows. The Fund will seek to invest in a minimum of three Companies for each Investor.

We meet with each of our management teams two days a month to ensure they get all the help and support they need. We also bring in the relevant expertise (SBS consultants) to help our companies. These could be in tech, operations, finance or management support. We will be with our companies for up to eight years and will only sell when we believe maximum value has been created, ensuring investors returns are maximised.

Key team

John Bailye - Founder and Managing Director

An Australian, who moved to the United States in 1987, John co-founded and assembled a team that grew a start-up to a billion dollars in market cap (formerly on Nasdaq: DRTE) with nearly 3,000 employees. He sponsored and co-founded the New Jersey Technology Council, now with circa 1,500 entrepreneurs as members, which is aimed at creating an exchange for entrepreneurs’ experiences and ideas. 

John has personally been investing in early stage companies for many years.

Sheli Gupta - Portfolio Company Mentor

Sheli is a serial entrepreneur with a passion for taking ideas and bringing them to life, with a focus on software. He began his entrepreneurial journey at the tender age of seven learning the whole lifecycle of door hinge manufacturing in the family business in Nairobi, Kenya, followed by selling school punishment lines at boarding school in the U.K., and ultimately starting, growing, and selling a number of software companies in the USA. 

Sheli will be working with the SidebySide Partnerships Portfolio Companies and mentoring them as they grow.

Ben Ashworth - Portfolio Manager

Ben joined the SidebySide Partnership in a series of roles that have taken him from the critical assessment of possible Investee Companies to the breadth and depth of the private capital due diligence process and the management of portfolio companies.

Ben is usually the main contact for all Investee Companies and is commonly at business functions introducing the SidebySide Partnership to Investors and potential Investee Companies.  

Alicia Taylor - Portfolio Manager

Alicia is Portfolio Manager at the SidebySide Partnership. She leads the review and recommendation process we use to choose the few companies we select for investment. Alicia produces the final investment committee documentation as well as the quarterly and annual reports on each company that our investors use to monitor the progress of their investee companies. Alicia is also in regular communication with other investors on co-investment opportunities.

Alicia previously worked within the Specialist Finance and UHNW Discretionary Portfolio Management divisions at Barclays Wealth & Investments and has completed Level I of the CFA and also holds the Investment Management Certificate (IMC). Alicia is the initial point of contact for all Investee Companies and guides them through the investment process at the SidebySide Partnership.

James D’Mello - Head of Business Development

James has over a decades’ financial services experience from a range of specialisms including banking, pensions & investments. During the last nine years James has focused on the intermediary space looking after clients across the UK. Working for companies such as MetLife, Retirement Advantage and more recently, Kuber, he has a unique insight into the tax efficient investment world. 

Exit strategy

We will be with our companies for up to eight years and will only sell when we believe maximum value has been created, ensuring investors returns are maximised. We seek to sell to private capital or via a planned trade sale.

Products and services

SidebySide EIS Venture Fund - The fund does not charge any fees to investors, meaning 100% of funds are available for tax relief. We also have the highest performance hurdle on the market, meaning we do not charge our performance fee until we have returned 150% of the entire client portfolio and ensure transparency to clients by offering quarterly reporting on all of their investee companies.

Fee summary

Fees charged to the Investee Company:

Initial Fee: 5%

Transaction Fee: 0.5%

Annual Management Fee: 2%

Fees charged to the Investor:

Performance Fee of 30% is charged after a 150% performance hurdle on the entire amount invested (Rather than on a company by company basis). No initial or annual fees are charged to investors.

Documents

Only registered investors can access the documents. Receive access by registering for an account.

Invest now

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The content above has been provided by The SidebySide Partnership, an Appointed Representative of Sapphire Capital Partners LLP who are authorised and regulated by the Financial Conduct Authority under firm registration number 565716.