The New Kids On The Block

INVESTMENT: HAMBRO PERKS GROWTH EIS FUND

AIM: HELPING BUSINESS FOUNDER TO BUILD GLOBAL COMPANIES

TELL US ABOUT THE FUND

Hambro Perks is a venture firm that backs outstanding founders and helps them build global companies. Founded by successful entrepreneurs and investors with a history of creating, scaling, internationalising and exiting businesses, and backed by a number of family offices and corporates as shareholders, Hambro Perks is an active investor that is able to provide support from the very earliest stages of a company’s journey. The provision of patient capital from our own balance sheet means we are aligned with the long-term goals and interests of the founders that we back, and we are able to support them over time as they build truly exceptional businesses. Many of our investee companies are resident in our office, and use the legal, accounting and digital marketing services that we provide. The alignment of interests created by this structure improves returns and makes us a destination of choice for the best founders as they build fast growth technology-enabled businesses.

The Hambro Perks Growth EIS Fund is structured as a series of individual managed accounts and provides an opportunity for individuals to co-invest with Hambro Perks in the same opportunities with the clear understanding that every investment sits alongside Hambro Perks’ own shareholder capital.

This enables individuals to benefit from proprietary deal flow while also benefiting from EIS reliefs. Over 12-18 months we aim to provide our investors with a diversified portfolio of 10-15 investments in companies at various stages of development, from early stage through to Series A, across a number of different sectors. The fund was launched in Q1 2018, and we were proud to receive the Highly Commended Award in the EISA’s Best Newcomer 2018 final.

HOW MUCH IS BEING RAISED?

The fund is evergreen and aims to raise £15 million to £20 million per year.

WHAT TYPES OF INVESTMENTS ARE BEING SOUGHT?

While we are sector agnostic, we have sector specialties in education technology, InsurTech, FinTech, digital health, digital media, and business services, and these represent around two-thirds of our portfolio. We look to back outstanding founders of businesses that are technology-enabled, capitallight, can disrupt large established markets, and have global potential. We invest initially in companies at seed to Series A stage (we are happy to be the first institutional investor in a business), and then aim to follow on in further capital raising rounds in those investee companies that meet our expectations for growth.

WHAT IS THE MINIMUM INVESTMENT?

The minimum investment is £25,000. There is no maximum, though EIS reliefs are capped for individuals at £1 million, or £2 million for ‘knowledgeintensive’ companies.

WHAT IS THE TARGETED RETURN?

We aim to give investors back at least 2x their initial subscription (excluding tax breaks). An investor that invests £25,000 should expect to receive at least £50,000 (ex-fees and ex-tax reliefs). We aim to return investors’ capital after three-to-five years, though this is not guaranteed and some investments may take longer to realise.

Provide details of the top three fund holdings

THREE OF OUR INVESTEE COMPANIES:

TEMPO – THE SMARTEST WAY TO HIRE OFFICE STAFF

Founded by Ben Chatfield and Ollie Povey, and incubated within Hambro Perks, Tempo is a staffing platform which helps businesses to find and hire temporary and permanent office admin staff. Through the use of innovative interfaces and machine learningdriven matching algorithms, Tempo is able to increase the likelihood of suggesting potential employees who will be a good fit while also helping to cut the costs (both in terms of money and time) of hiring borne by its corporate clients. The company launched in May 2017 and has displayed impressive traction by winning large, well-known companies as clients. Recent customer wins include Bulb Energy, Monzo, and Uber Eats. Our view is that the incumbents operating in this industry have been slow to embrace technology, and as a result struggle either to match

Tempo’s ability to tailor shortlists of potential recruits or to offer as compelling a service price point while remaining profitable. Tempo is in the process of rolling out its service across the UK, and has just launched operations in Manchester.

TAKUMI – A LEADING INSTAGRAM INFLUENCER PLATFORM

Takumi is a global Instagram influencer platform that allows brands to access the creativity, marketing reach and effectiveness of Instagram, and to benefit from amazing content created by advocates for their target audience. Founded by Mats Stigzelius, Gummi Anderson, and Solberg Audunsson and launched in November 2015, Takumi has scaled quickly through offering a managed service model and technology platform that delivers high quality targeted campaign content from carefully vetted influencers.

Takumi has an early mover advantage in this growing market as a pure Instagram specialist, combined with a reputation for focusing on producing the highest quality posts (they work only with the best talent, rejecting over 90% of applications from influencers wishing to join their platform). With more than 40 staff spread across key offices in London, New York and Berlin, Takumi is the number one influencer platform in Europe and sits in the top five globally. Over the course of 2018, Takumi completed around 600 campaigns for 300 brands, generating 13,000 influencer posts. It has worked with many of the world’s largest companies and brands across different sectors – recent new clients include Stella Artois, P&G, Pantene, and Wholefoods - and as marketing spend moves increasingly towards Instagram the potential for continued growth is large.

HEYDOC – THE FULLY INTEGRATED MANAGEMENT SYSTEM FOR MEDICAL PRACTITIONERS

Founded by Christoph Lippuner and Mikael Landau, Heydoc has built a fully integrated subscription-based system for medical practitioners that helps them manage appointments, electronic medical records, patient data, prescriptions, test results, and invoicing. It structures, and in time will learn from, medical data in a way that benefits medical practitioners, patients and clinical research. This is a multi-billion dollar global market that is currently poorly served, and Heydoc’s superior product, which focuses on doctors’ specific needs, is winning share from the largest incumbents, a trend we expect to continue. Lippuner and Landau are experienced entrepreneurs having previously founded and sold a business to JustEat and we expect them to build a very successful company. GBI