The EIS Navigator

The Enterprise Investment Scheme (EIS) is now 30 years old! To celebrate, we asked Christiana Stewart-Lockhart, Director General of the EIS Association, onto the podcast to discuss the past, present and future of the scheme.In a wide ranging discussion we talk about:the founding of EISthe progress it has madewhat has made it so successfulrenewal of the scheme and the efforts underpinning itwhy EIS is still not as well known as it should behow awareness could be increasedthe progress with improving diversity and regional investingthe effects of the recent changes to SEIS limitsChristiana brings together both the big picture on the importance of the tax advantaged schemes and the small scale that each company and investor represents. Its a great discussion - enjoy!PS This was recorded before the recent Treasury announcement that the EU has approved the extension of EIS. 00:50 Christiana introduces herself and the EIS Association04:00 The founding of EIS and how it has progressed07:25 Why has EIS been successful12:15 How the Patient Capital Review changed the schemes14:00 Lobbying for the scheme extension18:50 Why EIS is not as well known as we would like26:50 How do we increase awareness30:15 Role of financial advisers34:45 Progress with diversity of founders and expanding into regions41:00 Effect of changes to SEIS limits43:00 Looking forward46:10 Favourite questionsLinksEIS Association website - https://eisa.og.uk/HMRC 2023 EIS Statistics - https://www.gov.uk/government/statistics/enterprise-investment-scheme-seed-enterprise-investment-scheme-and-social-investment-tax-relief-may-202430th Anniversary of EIS event - https://eisa.org.uk/30th-anniversary-of-eis/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaAlchemy by Rory SutherlandBioChristiana Stewart-LockhartDirector General, EIS AssociationChristiana Stewart-Lockhart is the Director General of the Enterprise Investment Scheme Association (EISA). She previously spent more than a decade working in Westminster including ten years at the Institute of Economic Affairs. She also founded EPICENTER, a Brussels based network of some of the most respected think tanks from across Europe. Christiana holds a BA in Politics from the University of York. She is a member of TISA’s Children’s Financial Education Policy Council and also sits on the Advisory Board for the All Party Parliamentary Group for Entrepreneurship.

While fintech has perhaps fallen out of the spotlight in venture capital, it remains a significant part of the UK venture capital scene. It is one of Love Ventures three specialist areas, and in this episode co-founders Marcus Love and Adrian Love give their views on how the sector has developed and what matters now.In a great discussion, Marcus and Adrian talk about:the difference between v1 and v2 of fintechwhy financial services is so attractive for innovatorshow business models have developedmatching founders to the right producthow incumbents are responding to new entrants and the advantages the latter havewhy the UK is doing well in supporting fintechhow AI fits into their investment thesiswhat areas are attractive for investment todayAlthough Love Ventures is a relatively new manager, both Marcus and Adrian have strong backgrounds in entrepreneurship and investing. This experience allows them to being some great insights into how the world of fintech is progressing today.PS This was recorded while travelling, so apologies for the echoes in the background for the host. 00:55 Marcus and Adrian introduce themselves02:55 Love Ventures05:15 versions 1 & 2 of fintech08:50 why financial services is so ripe for innovation11:25 blockages to blockchain in the real world yet14:00 finding the correct business models going forward17:00 importance of product/founder fit19:40 Incumbents vs new entrants22:00 report on corporate venture capital25:10 the UK regulatory sandbox27:10 UK as a model for other countries28:45 how the need for capital hasn't changed33:30 looking for right scale of problem to invest in35:20 role of AI - specialist / small models40:45 data confidentiality - importance of specialist data43:40 prime areas for investing now45:30 Favourite questionsLinksLove Ventures website - https://loveventures.co.uk/Love Ventures on LinkedIn - https://www.linkedin.com/company/love-ventures/Report on corporate venture capital - https://loveventures.co.uk/navigating-cvc/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Power Law by Sebastian MallabyThe Anxious Generation by Jonathan HaidtBiosMarcus Love, Co-Founder, Love VenturesIn the first part of his career he spent nearly 10 years in Paris working in consulting for Cap Gemini then in a start-up and in various sales roles. In 2005 he moved back to London and worked for 14 years in the City selling global equity research to fund managers.He started angel investing in 2015 and built up an angel portfolio of 20 companies, building an angel syndicate along the way. HE formed Love Ventures in March 2020 at the start of the pandemic and hasn’t looked back since.He loves helping portfolio companies where he can, and is super excited by the growth of their first two funds and their super team! Outside work, he enjoy sports, culture and travel. Most recently he cycled 458 miles in eastern Turkey for a charity called 1morechild.Adrian Love, Co-Founder, Love VenturesThe early part of his career was spent at The Instant Group, a high growth pioneer within the global flexible workspace sector where he focussed on enterprise sales before its acquisition by MML Capital – their digital assets have now merged with IWG Group. From 2016, he worked at Dorrington PLC, a £1.4Bn private investment company, where he was an investment manager of a £200m portfolio of assets.During this period, he began his own entrepreneurial journey within property development and also started angel investing, building up an angel syndicate alongside his brother Marcus. Having been in business together since 2009, they co-founded Love Ventures in 2020 and enjoy using their extensive networks to help the founders across our portfolio.Outside of the world of start-ups, you can usually find him on the sports pitch whether it’s regular five-a-side football, squash, golf or skiing. He also loves an adventure and has been recruiting founders for a round the world cycle to Sydney, starting off with London to Paris in September.

Eos Advisory are rapidly building a solid reputation in science-based venture capital investing. In this episode, Partner Mark Beaumont discusses their roots, philosophy and how that translates into practice, with lots of real-life examples.In an in-depth discussion, Mark talks about:how the Eos investment philosophy developedthe strengths of the Scottish venture capital eco-systemwhat makes good founders and how he assesses thatgetting alignment between managers/investors and foundersdetermining whether there is a big enough markethow to give a company an international outlook as early as possiblethe mistakes founders makechanging management mindsets as a company progressesMark's background gives him a very different perspective, both individually and as part of a team that brings very diverse experiences. His insights into the people side in particular are tremendous. There is much for any founder or investor to learn here.01:00 Mark introduces himself04:50 where Eos is now07:20 how their investment philosophy developed10:30 lack of competition for deals in Scotland11:50 Scottish eco-system - current strengths16:20 what they are looking for in founders 20:30 separating people from company24:20 alignment between founders, investors and managers27:40 how do you determine a market 32:15 internationalising - when and how36:15 how to line up international investors38:40 what mistakes founders make41:00 challenges of funding44:50 changing mindsets in companies as they progress49:25 favourite questionsLinksEos Advisory website - https://eos-advisory.com/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaCoffee First, then the World by Jenny GrahamBioMark Beaumont, Partner, Eos AdvisoryMark Beaumont became a Partner at Eos Advisory in 2019 and has helped lead the business through a period of significant growth, investing in predominantly Scottish science and technology companies addressing key global issues in healthcare and environmental health. Mark Beaumont spent the first chapter his career building teams around sporting success and is publicly known as an athlete and BBC broadcaster. He still holds the 18,000-mile circumnavigation cycling record in a time of 78 days. Mark’s degree education was in Economics & Politics, and for a decade and a half worked with a leading UK mid-market private equity firm. Mark is Patron for Entrepreneurial Scotland, Honorary President for Scottish Student Sport, Fellow of the Royal Society of Edinburgh and was honoured in the Queens New Year’s honours for services to sport and charity.

In this episode of the EIS Navigator we get a great founder story. Despite not having a medical background, Clare Brenner founded Myogenes which specialises in pharmocogenetic testing. She has a very personal story about her motivation for initially focusing on mental health to begin with, as well as her experiences in starting in a new area.In the discussion, Clare talks about:how she found a good area to work onthe initial focus on clozapinewhy she seeks out the best people to work withthe challenges of getting initial fundinghow patient advocacy is playing a rolemaking a business case to convince the NHSmoving into the US marketwhere we are in developing personalised medicineClare's story is both inspiring and insightful, as well as being a great follow-on to the previous episode about female founders. 00:45 Clare introduces Myogenes04:55 establishing proof of concept06:40 how she found a test08:30 how does the test work and the importance of working with doctors11:50 finding the top people15:00 why she focused on clozapine 18:00 how they developed the test 19:00 founding the company 21:00 marketing into the NHS: establishing cost/benefit and business impact models25:00 progress with individual health trusts28:00 the role of patient/family lobbying29:00 getting funding for preventative medicine32:30 moving into the US37:10 where are we in personalised medicine41:00 prospects for Myogenes 43:45 Favourite questionsLinksMyogenes website - https://www.myogenes.com/Telephone - 020 8387 1266Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Diary of a CEO by Steven BartlettBioClare Brenner, Founder & CEO, MyogenesClare Brenner, CEO & Co-founder Clare began her working career at the BBC, moving from radio to television and then to writing and producing. Her interest in genetics started in 2010 working for a private hospital and launching their DNA testing programme. She started on her own in 2016 and has dedicated the last six years to becoming expert in the field of genetics and forming her own company Myogenes.

Nick Dimmock founded 350PPM as an incubator for various environmental businesses, but has followed a different path from many incubators. In this episode, he discusses how he developed the 350PPM business model, developing companies more generally and the state of environmental investing.Amongst other items, Nick discusses:how he developed 350PPM's business modelthe importance of the right systembalancing doing things for a company versus developing internal capabilitieshandling areas that are capital intensivewhere we are in the demand cycle for environmental investmentshow we generate more interest in themthe need for political support and changeNick is naturally forthright and brings some strong opinions which make for a very interesting conversation.01:50 Nick introduces himself05:00 what 350PPM is and does07:40 how did the business model develop - developing a system13:00 doing stuff for a company vs developing internal capability18:35 what sorts of companies are of interest and why22:35 capital intensity27:30 demand for environmental investments31:45 how do we sustain interest in environmental investments33:00 need for removal of subsidies39:40 next steps41:15 Favourite questionsLinks350PPM website - https://350ppm.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaWhat You See is What You Get by Alan SugarBillionaire: The Life and Times of Sir James Goldsmith by Ivan FallonThe Fifth Risk: Undoing Democracy by Michael LewisBioNick Dimmock, Founder & CEO, 350PPMNick has worked in the environmental sector since 2007 and has so far been involved in over 50 environmental projects from Municipal Solid Waste Composting in India, to 1500 MW Hydroelectric projects in Ecuador. Overall, the projects Nick has been involved in have created on-going emission reductions over 9 Million tons of CO2e per annum. From 2017, Nick has been involved with incubating, accelerating and venture building early stage cleantech businesses.

Software-as-a-Service (SaaS) founders rightly focus on their product and market, but sound finances underpin any success. Anthony Nitsos founded fractional CFO business SaaS Gurus after working in a couple of successful exits. He has seen the inside of many SaaS businesses so has lots of experience in developing good practice and seeing the mistakes that founders make. In this episode, we tap into that knowledge.Amongst other topics, Anthony discusses:balancing different financial metricssensible gross margin targets and when companies should be hitting themchanges in SaaS valuation multiplesthe value of market expertise in generating successsales cycles and how they differ in B2B and B2Cfinding the right first sales person and who the next recruits should bewhen to bring in a CFO (and its earlier than most think)the value of benchmarkingthe difference between finance and accounting in companieshow to prepare for an exitIts a great conversation, with Anthony bringing lots of insights from his vast expertise for founders and investors alike.00:50 Anthony introduces himself04:45 what financial metrics matter and the difference between venture-backed and bootstrapped businesses09:45 gross margin - good targets and when you should be hitting them13:30 how valuation multiples have changed in SaaS15:45 patterns in CAC and trends in software purchasers18:05 how to you know you have product/market fit 20:00 difference in sales cycles between B2B and B2C23:30 the value of market knowledge and how startups are not for on the job training 24:30 why its easier to move from enterprise to SME than vice versa25:45 how finding the right first sales person is the biggest challenge31:45 building a sales team37:00 when to bring in a CFO39:30 the merits of building finance function when its pre-revenue42:20 the value of benchmarking43:15 most companies have problems45:00 the difference between accounting and finance49:20 preparing for exits - how acquirers look at finances 56:00 why founders should know what short of exit they want60:00 favourite questionsLinksSaaS Gurus website - https://saasgurus.io/Free ebook on "SaaS Secrets for Financial Triumph" - https://saasgurus.io/labSaaS Gurus contact page - https://saasgurus.io/contact/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaMeasure What Matters by John DoerrDuneBioAnthony Nitsos, Founder & CEO, SaaS GurusAnthony Nitsos elevates your financial strategy to meet challenges and drive your company value. Working with pre-seed to Series B stage SaaS startups, he ensures that founders have reliable metrics and a solid understanding of the true economics of their business to maximize valuation. He optimizes financial operations, sales operations, human resources operations, and risk management systems. He’s worked with various startups, including two unicorn exists. Learn more at SaaSGurus.io.

Rob Bell, an expert in EIS funds and VCTs, discusses choosing the right scheme for clients, diversification strategies, assessing manager track records, SEIS in financial planning, specialist vs generalist managers, ESG and impact investments, and improving investor perception of venture capital.

Manufacturing and operations is an area that has been much neglected by venture capital, but has plenty of issues that can be address. Renan Devillieres of venture builder OSS Ventures focuses on this space, with distinct methods and successful results. In this episode we discuss how he goes about creating successful new businesses, with very good results to date.In a wide ranging discussion, Renan discusses:what is venture buildingthe process for finding pain points in factorieshow Renan characterises different operations why there is still so much low hanging fruit in this areawhat sorts of manufacturers are open to changehow to make sure there is enough initial customers and how to work with themworking with different tech stackshow to make sure that companies don't customise for specific clientsmaking the OSS fire itself from each companythe different markets and sales processes he seesfinding the right founders and the skill sets they needthe effect of AIhow the global manufacturing model of the past 30 years is changing nowIts a great conversation with lots of insights from Renan and a must listen for investors and founders who want to build successful businesses.01:30 Renan introduces himself02:45 introduction to OSS04:00 what is venture building?09:00 finding pain points in factories13:15 how the regulatory environment can affect go-to-market strategies17:30 why is there so much low hanging fruit21:00 how different manufacturers are stuck or open to change 25:30 finding the first customers 29:00 working with clients to build viable solutions without customising too much32:00 how the OSS team fires itself37:00 how different software has different sales and decision making processes41:20 the necessary founder skills44:15 how AI is affecting manufacturing49:10 trends in manufacturing and how its all changing now55:30 favourite questionsLinksOSS Ventures website - https://www.oss.ventures/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Subtle Art of Not Giving a F*ck by Mark MansonEmpty Planet by Darrell Bricker & John IbbitsonBioRenan Devillières, CEO OSS VenturesA graduate of the Ecole Normale Supérieure and the Ecole Polytechnique Fédérale de Lausanne, Renan began his career as a consultant at McKinsey, before becoming an economist at the OECD and then strategic project manager for the Richemont Group. After his various experiences, Renan launched into entrepreneurship by founding a start-up, which he later sold. Having always been attracted to tech and industry, Renan co-founded OSS Ventures in 2019 with the mission of supporting French industry in its technological, environmental, social and societal transition from industry 2.0 to industry 4.0.

Governance is all too often seen in startup companies as a chore, or necessary evil when it can be a positive and enable success. Dermot Campbell, founder of CEEIO, is trying bring more of the latter to the venture world. In this episode, he discusses how startups can enable good governance without spending too much time on it and make it a means to the right end rather than an end in itself.Dermot covers a lot of areas, including:what is governancethe importance of maintaining stakeholder relationshipswhen startups should start introducing governance structureshow governance should lead growthwho should take the lead on board creationthe role of fund managersgood preparation for board meetingsbuilding effective board agendasthe value in identifying riskssetting up risk assessments and how these can lead to key objectiveshow to generate relevant KPIshow to translate a business plan into something usefulgenerating the right boardthe commons mistakes made by foundersthe rise of ESG and how its different in startups from quoted companiesWhether you are a founder looking to put governance into place or an investor helping or wanting a company to do it, this is an essential discussion.01:00 Dermot introduces himself02:00 What is SEEIO03:10 What is governance04:20 the importance of maintaining stakeholder relationships05:40 importance of creating a governance framework06:15 how should new startups approach governance08:40 when to create the board09:45 who takes the lead11:30 role of fund managers12:30 the work in preparing for board meetings15:00 don't just sell - value in identify risks16:30 setting up appropriate risk assessment 20:30 how to use a business plan and use it to generate objectives22:10 working on KPIs24:00 building effective board agendas27:20 generating the right board and founder relationship with them30:30 role of independent NEDs in startups32:10 what mistakes do founders make33:30 value of governance in improving odds for fundraising35:50 rise of ESG and how investors care about G - G facilitates E & S42:20 favourite questionsLinksSEEIO website - https://seeio.co.uk/Dermot on LinkedIn - https://www.linkedin.com/in/dermot-campbell-3178a326/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Go To Market Handbook for B2B SaaS Leaders by Richard BlunderMEDDICC: The ultimate guide to staying one step ahead in the complex sale by Andy WhyteBioDermot CampbellCEO, SEEIODermot Campbell is an experienced fintech leader, known for founding Kuber Ventures and building it up to be a key player in the alternative investment platform sector. As CEO of SEEIO, he's transforming corporate governance for startup and scaleup SMEs. His expertise spans wealth management, financial planning, and navigating regulatory environments.   Prior to becoming a startup founder, Dermot was a Chartered Wealth Manager and in his early career he was an airline pilot.

Getting big returns in venture capital can involve stepping away from the mainstream and investing in opportunities that others won't. Will Gibbs of Octopus Ventures has a reputation for investing in areas others see as taboo. We ask him about being a contrarian investor, how to do it well and what needs to change to create a successful investment.In a discussion filled with numerous examples, Will discusses:getting big enough markets when the market is somewhat hiddenbalancing new technology and new marketswhen specialist investors are neededjudging whether a company will be ripe for follow-on investmenthow taboo investments can interact with social changesequencing market expansionwhat a company needs to internationalisewhat problems that internationalising doesn't solvebuilding deal flow in taboo areashow the venture capital industry is creating some of the problemsthe value of team diversity in looking away from consensus areaswhether valuations are different in taboo areas.In a wide ranging conversation, Will brings a great perspective on how to bring mainstream venture capital skills to genuinely new areas. Its a great discussion for investors and companies who dare to be different. Enjoy!01:00 Will introduces himself03:40 Who Octopus Ventures are06:30 Contrarian and tabooo investing 07:45 Example: Elvie - silent breast pump09:50 Example: Pelago - substance use disorder13:20 the size of taboo markets, challenges in assessing true market size16:00 new tech and new markets - need for specialists17:30 Example Overture - improving and automating IVF19:20 market meets social movements - will someone follow-on?22:05 assessing the pace of social change - risk of too early25:30 sequencing the right national / international markets25:45 Example Skin & Me - getting expansion right and not too quick29:30 Time and capital to internationalise31:00 when is the right or wrong time to internationalise33:30 building deal flow in taboo areas35:15 to what extent is the venture capital industry part of the problem - value of diversity 38:05 is the industry going in the right direction?40:00 are valuations different in taboo areas?42:35 creating communities supporting companies47:45 prospects50:20 Favourite questionsLinksOctopus Investments: https://octopusinvestments.com/Octopus Ventures website: https://octopusventures.com/Companies mentioned:Pelago https://www.pelagohealth.com/Overture https://www.overture.life/Vira https://www.vira.health/Elvie https://www.elvie.com/en-gbSkin and me https://www.skinandme.com/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaEssentialism by Greg McKeownIn the Company of Givers and Takers by Adam Grant (article) https://hbr.org/2013/04/in-the-company-of-givers-and-takersBioWill GibbsHealthtech Partmer, Octopus VenturesWill joined Octopus in 2013 and sits in its Health team. He works with portfolio companies from consumer to enterprise, with a strong bias towards businesses making the biggest impacts on health.In recent years he has explored taboo areas within health, resulting in multiple new investments around this theme, from substance addiction to LGBT sexual health. He’s also passionate about the potential for digital therapeutics to deliver superior outcomes for some conditions, US expansion, the future of cannabinoids and novel business models within health.Will was based in Octopus' US office in New York during 2016, and continues to support portfolio companies looking to expand into the US health market. Many of his portfolio companies are based in the US, and he invests alongside big global investors like SoftBank Group, Kinnevik, Atomico and EQT Partners.Will is also a vocal champion of diversity and LGBT issues and is happily married to his husband Christopher.He founded multiple startups before joining Octopus Ventures, including a rare-breed pig farm and an organic spirits company.Will holds a degree in ancient history and classical archaeology from the University of Oxford. https://www.linkedin.com/in/willgibbs1/