The EIS Navigator

While most VCT and EIS investors probably have some knowledge of quoted equity markets, listed investments using these schemes have very different characteristics from the mainstream. The Baronsmead VCTs invest in both unquoted and quoted companies and Bevan Duncan and Ken Wotton manage the respective portfolios there.We go through the whole process, discussing the differences in how investments are sourced and focussing on how managers can work with companies once invested. We dig into what the real differences are and how these can affect outcomes. We also get their views on how the steady reduction in listed companies and increase in capital in unquoted markets affects their world. Suggested book:Rebel Ideas: The Power of Diverse Thinking by Matthew SyedThe Undoing Project: A Friendship that Changed the World by Michael LewisBaronsmead VCTs - https://greshamhouse.com/strategic-equity/private-equity/baronsmead-vcts/Gresham House - https://greshamhouse.com/

Marketing is a make-or-break area for almost all startups. Having started his career in advertising, Velocity Capital's Rajeev Saxena is an expert on the topic, particularly digital, and we probe his knowledge to get insight for both investors and startups.We discuss wide range of areas: the growth of subscription models and how startups looks at them, the mistakes startups make and the support that they need. We also touch on the dominance of Google and Facebook and the pros & cons of this. Rajeev also brings plenty examples of the steps that startups have taken to put them on a better marketing path.Finally, Velocity has one of the most diverse teams in the EIS industry and we discuss how well the latter is doing.Velocity Capital Advisors - https://www.velocity.co.com/Juice Ventures - https://juice.ventures/

2020 has been a challenging year for many and the EIS industry is no exception. The EIS Navigator team have got together an all-star panel to discuss what happened. Mark Brownridge, Director General of EIS Association, Ewoud Karelse, Head of Tax Advantaged Investments, Tilney Smith & Williamson, and Kealan Doyle, Director, Symvan Capital join Brian to pick through the debris and the prospects for 2021.We discuss fundraising and investing, whether the government support schemes have worked for EIS companies and what area needs to change. We also discuss the new Knowledge Intensive Approved Funds as well as EISA's fees initiative before a poke around Brexit and what may or may not happen in 2021. On the latter point, we recorded this in early December when a deal looked unlikely so our comments may be less prescient than we had hoped!Links;EIS AssocationSymvan CapitalTilney Smith & Williamson

Measuring sustainability is not a trivial challenge and there seems to be a plethora of options now. Vala Capital's Max Middleton and Jake Wombwell-Povey have done a huge amount of work in figuring out how to apply sustainability frameworks to startups and small companies.We take advantage of this to discuss some of the different frameworks, the differences between them and what they really mean to startups. We also discuss what the current surge of interest in ESG means for investors and the outcomes that companies may have.Vala CapitalFrameworks Impact Management Project - https://impactmanagementproject.com/Sustainable Accounting Standards Board - https://www.sasb.org/Certified B Corporation - https://bcorporation.uk/Suggested books:Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate RaworthLet My People Go Surfing by Yvon ChouinardThe Value of Everything: Making and Taking in the Global Economy by Mariana Mazzucato

Ian Warwick worked in various executive roles in the US before founding Deepbridge. We focus on one of these, Aftersoft, a software company that Ian was brought in to turn round. Over five years, he turned things round and put the company on course for a successful exit later on.We discuss the challenges of entering a difficult situation and finding the right path, including what to cut and when. The challenges for companies selling into the US are well known, and we tap Ian's very practical experiences. We also talk about how he applies the lessons he learnt to investing and supporting startup companies and how EIS is actually secondary in this.Deepbridge CapitalSuggested books:How to Win Friends and Influence People by Dale CarnegieThe Alchemist: A Fable About Following Your Dream by Paulo CoelhoThe Man Who Planted Trees by Jean Giono

Scott Weavers-Wright achieved two very successful exits before he founded Haatch. In the late 1990s, Kiddicare was a family shop selling pushchairs, car seats and the paraphernalia that babies and young children need. Scott persuaded the family to launch a website, which was the start of a decade of immense growth in which it beat many household names and became the largest in its category in Europe, before selling out to Morrisons.We discuss the challenges of managing the business through a period of such fast growth, about serial re-platforming while empowering staff keeping customer focus throughout. We also discuss the stresses of doing this in a family business, how the sale decision came about and what happened to the business once it was inside Morrisons. Haatch - haatch.comSuggested books:Losing my Virginity by Richard Branson

Before joining Newable, Sanjeev Gordhan worked on the advisory side of the industry. He has a lot of experience in helping investors decided how much money to put into venture capital and unquoted investments.We discuss how investors should approach this and the difference between theory and practice. We also get into how you should spread your venture capital allocation between different segments, discussing how risk and value interact. And we can't ignore COVID and how investors are reacting to it in their portfolios.NewableSuggested books:21 Lessons for the 21st Century by Yuval Noah HarariChimp Paradox by Prof Steven Peters

As a relative newcomer to the EIS industry, Andy Davidson of We Are Nova sees it a little differently to many of us. For the last year or so, he's been challenging the industry to create market funds for EIS, akin to index funds for equities and bonds.We discuss what that would mean for investors - not only the advantages but also some of the challenges of making it happen.This is the second part of the conversation with Andy, following-on from the preceding episode where he discussed his investment philosophy and the five reasons startups fail.We are NovaSuggested books/reading:Blue Ocean Strategy by W Chan Kim & Renée MauborgneThe Lean Startup by Eric RiesRunning Lean by Ash MauryaScaling Lean by Ash MauryaStrategyzer blog (Alexander Osterwalder and co-authors)

Andy Davidson has created the Nova Co-foundery to help develop businesses from before day one. We discuss how it works and how he developed his company building philosophy.As well as his practical experience, he has extensively researched the issues that startups have. A significant focus is the 5 reasons that startups fail (100firsthits.com). We discuss what these are, why they are a problem and how Nova works to avoid them.This is the first of a two-parter - we were having such conversation we kept going longer than usual. In the next episode we turn our attention to the EIS industry.We are NovaBooks mentioned:The Lean Startup by Eric RiesCrossing the Chasm by Geoffrey MooreFour Steps to the Epiphany by Steve Blank

Hardware investing is a relatively niche area within EIS investing, but still has many attractions. Dr Ilian Iliev of EMV Capital talks about how the capital intensity has improved and how the ecosystem is attractive.We also draw on his background in intellectual property to discuss the different strategies that startup companies can use. We go through the pros and cons, with lots of information on what both investors and founders need to consider.This episode is the last one that was recorded before the COVID-19 lockdown.EMV CapitalSuggested books: Posh Boys: How English Public Schools Ruin Britain by Robert VerkaikArchitects of Intelligence: The Truth about AI from the People Building it by Martin FordAs usual, full shownotes are at https://www.hardmanandco.com/podcast/ and you can contact us at info@hardmanandco.com.