The EIS Navigator

Healthcare is a large industry and is a lot more than just drugs. We have two experts, Savvas Neophytou and Ben Carter of Deepbridge, to discuss the industry and how there is a lot of other life science areas that are attractive to venture capital investors.We talk a lot about devices. We discuss the challenges and benefits of investing in hardware, how they do diligence on technologies and negotiating the regulatory environment, especially how different areas of the health system can be attractive. We also talk about internationalisation, how markets and regulation interact and how the US doesn't always having the most attractive RoI.AI is flavour of the month and clearly will have a strong effect on healthcare. Savvas and Ben talk about where we are and how it will progress in the near future.LinksDeepbridge website - https://www.deepbridgecapital.com/Deepbridge contact - Andrew Aldridge andrew.aldridge@deepbridgecapital.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksTools of Titans by Tim FerrisGifted Greek by Moneteagle StearnsBiosDr. Savvas NeophytouPartner & Chief Investment OfficerSavvas is Chief Investment Officer at Deepbridge. Prior to joining Deepbridge, Savvas enjoyed a 15 year career in the City, working as an investment banker at JP Morgan, Bear Stearns, Shore Capital, Cantor Fitzgerald, and Panmure Gordon. Savvas was also CEO of telemedicine business Now Healthcare Group. As a highly acclaimed analyst, Savvas has won multiple awards, most recently in 2015 when Savvas was ranked 2nd overall in the prestigious Reuters Starmine survey, a position he also held in 2014. In the same year, Savvas was also runner-up in the CityAM Analyst of the Year awards. Savvas holds a PhD in psychopharmacology from Nottingham University and a BSc (Hons) degree in pharmacology from Manchester University.Ben CarterInvestment Director - Head Of Life SciencesBen is the Head of Life Sciences at Deepbridge. Prior to this role, Ben had been the managing director of Touchpoint Service and commercial director of Telmenow the healthcare equipment focussed e-commerce platform. Ben has also been chief commercial officer at Now Healthcare Group, a leading telemedicine provider with its Dr Now app.With a BA (Hons) in Management from the University of Manchester, Ben’s other corporate experience includes being commercial director at Possum, market leaders in the provision, installation and support of many types of electronic assistive technology.

Venture debt is a niche within the venture capital market that has been growing in importance. In this episode we get David Hayers, who is Head of Venture Debt at Hambro Perks, to explain what venture debt is and how it works.We start off by going through the basics. David talks about what types of companies venture debt is suitable for, what they look for when doing diligence and how the loans get repaid. We also dig into the typical terms that borrowers get and how those are seen in the market.After this, we move on to the wider market. We discuss the growth in venture debt and how other market participants are increasingly more accepting of it. We then look at demand in the current environment and how there are good and bad sides to recent market evolution. We also chat about other market participants, including events at Silicon Valley Bank and how David sees the market evolving in the near future. LinksHambro Perks website - https://www.hambroperks.com/David Hayers - LinkedIn https://www.linkedin.com/in/david-hayers-44280240/ or email david.hayers@hambroperks.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksAffluenza by Oliver JamesTuesdays with Morrie by Mitch AlbomBioDavid Hayers, Head of Venture Debt, Hambro PerksBefore joining Hambro Perks, David was Head of Growth Finance at Clydesdale Bank/Virgin Money for seven years, preceded by a further year as a Senior Investment Director. During David’s leadership, the team grew its lending to early stage, high growth software and advanced manufacturing businesses by nearly 600%, and generated record income in each of the four years between 2017 and 2020. David devised and implemented an expansionary strategy, which required securing the support of multiple stakeholders in the bank, undertaking a restructuring exercise and then recruiting a strong origination team to execute the plan. This plan has enabled the team to accelerate its origination and completion capabilities, such that the team has now lent in excess of £300m to more than 70 high growth companies. Prior to joining Growth Finance, David spent eight years in the London-based leverage and corporate finance unit at Clydesdale Bank providing structured senior debt of between £5m and £50m to listed and private equity backed companies.Before moving into banking, David spent three years in auditing and then eight years in corporate finance advisory helping management teams buy and sell businesses, working for several firms including BDO in London and Deloitte in Sydney. He also spent time in industry working for a private equity backed business as an in-house M&A specialist. David is a Fellow of the Institute of Chartered Accountants in England and Wales.

In today's episode we get more of a corporate finance perspective on venture capital, with two guests from PwC. Antonia Burridge co-founded the Raise team and John Baker is heavily involved in equity crowdfunding, so we get a perspective that extends right across the market.We start we some background on the Raise Team. Antonia discusses founding a new operation within a such large organisation, what they had to do to get it going and how they think about bringing value to fundraising for both companies and investors. John talks about how equity crowdfunding has developed over the past few years.We then discuss the current market in some detail. Antonia and John bring some interesting statistics to back up their observations as we talk about volumes and valuations. They bring insights into how founders and investors are adjusting to the new environment and what it takes to fundraise now. LinksPwC for startups and scaleups information - https://www.pwc.com/gx/en/services/entrepreneurial-private-business/small-business-solutions.htmlJohn's (non-PwC) Telegram group for ECF - https://t.me/joinchat/vTZKqkWSMmQwNDc0Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested booksFounders at Work by Jessica LivingstoneHow Women Rise by Sally Helgesen and Marshall GoldsmithBiosAntonia Burridge is one of the Co-Founders of PwC Raise | Ventures, with a focus on helping high growth early stage tech companies to raise their Series A and B funding rounds. Before setting up the team she worked in the M&A modelling and analytics team, supporting Private Equity houses and portfolio companies both during and post deal with their Business Planning, Cash Flow forecasting, Reporting and Analytics. She is also a chartered accountant and the Co-Founder of an award winning Femtech startup.John Baker has been working in deals and restructuring at PwC for nearly 20 years. In this time he has helped companies and management teams with a range of solutions to create value including performance improvement, cash control, managed services, stakeholder management and restructuring. He is currently speaking to a number of startups at the moment about cash focus, operations optimisation and back office efficiency, ESG and overall future funding and strategy. He is also an investor in a number of startups and regularly communicates with a group of 300+ early stage enthusiasts who share insights and intelligence.

While we usually focus on EIS and VCT in this podcast, there is a larger venture capital industry outside this area. Although its been mainly for institutional investors to date, Sprout is looking to change that. In this episode, founder and CEO, Jonny Blausten discusses the GP/LP market in general and how they are opening it up to retail investors.We start by talking about GP/LP funds. Jonny explains what they are, how they work and how they differ from the EIS funds that we are used to. We chat about how GP/LP funds can invest more widely, both by stage and internationally, and how the breadth of funds means there are plenty with strong track records.Jonny also discusses Sprout's fund selection process. It uses the "10 Ts": a list of criteria that funds should satisfy. We dig into some of the less obvious ones and Jonny explains why they are important, both to investors and to generate a robust selection process.LinksSprout - https://www.viasprout.com/Jonny's email: jonny@viasprout.comSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenBioJonny BlaustenFounder and CEO, SproutJonny Blausten is CEO & Co-Founder of Sprout - an investment platform for private investors looking to access top-tier venture capital funds. Having previously worked in strategy and M&A, Jonny founded Sprout to tackle the paucity of quality private market investment opportunities available to professionals, HNWIs and family offices.

Exits were described by an earlier guest as mythical beasts, but the reality is much more positive. Beauhurst used their database in report that they published in 2022, we we get their Head of Research, Henry Whorwood, to discuss it. While our discussion doesn't need the report in front of you, some people will find it helpful to download it using the link below.Henry starts off by talking about Beauhurt's data and what the report looks at. We discuss how they focus on high-growth companies, where they source data and how timely it is. We then move onto the trends that the report shows. We discuss the steady growth over the past decade and some anomalies in 202, particularly the surge in IPOs.We also dig into some of the details that the data shows. Henry gives insight into more recents trends, discusses the growth of overseas investment and some of the patterns in different types of companies LinksBeauhurst - https://www.beauhurst.com/Exits in the UK report - https://www.beauhurst.com/research/Exits-in-the-UKBeauhurst research (including latest (The Deal") - https://www.beauhurst.com/research/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:The Power Law by Sebastian MallabyBioHenry WhorwoodHead of Research & Consultancy, BeauhurstHenry started and runs Beauhurst’s Research & Consultancy department which produces research on the UK’s startups and scaleups. He has worked on briefs for clients including the British Business Bank, HM Treasury, BEIS and Innovate UK. Henry is an expert on business finance, entrepreneurship and innovation and regularly gives presentations on market trends at events around the country. He studied Classics at the University of Oxford.

The events with Silicon Valley Bank have been dramatic and concerning for the venture capital industry in the US and UK. The EIS Navigator's host, Brian Moretta, has spent much of his career analysing financial companies, so is uniquely placed to give insights on banking and venture capital in this solo episode.Brian summarises what happened at Silicon Valley Bank. He outlines how the recent growth in deposits and a poor investment policy led to a bad outcome. He talks about the mistakes that management seem to have made. He then outlines what has happened to the US parent and the UK subsidiary.He then goes on to talk about the immediate consequences for startups in the UK and the effect on investors. He also highlights some interesting knock-on effects in the US. Finally, he looks at the longer term consequences, both what venture funded companies should do and what might happen in the banking market to service them.LinksWikipedia on Silicon Valley Bank - https://en.wikipedia.org/wiki/Silicon_Valley_BankSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenBioBrian MorettaHead of Tax Enhanced Services, Hardman & CoBrian Moretta is the Head of Tax-Enhanced Research at Hardman & Co, and also covers Financials stocks and Investment Funds.In addition to his role with Hardman & Co, Brian lectures on actuarial science and financial economics at Heriot Watt University, has been an examiner for the Faculty & Institute of Actuaries, and is on the Bankers without Borders Financial Modelling Reserve Corp.Brian has had a 20-year career in Financial Services, including more than a decade as a fund manager. He specialised in analysing Financial Services companies at SVM Asset Management, as well as managing two traded endowment funds, an equity fund and working on hedge funds.Brian joined Hardman & Co in February 2013. He holds a PhD in Applied Probability and a BSc in Actuarial Maths and Statistics from Heriot Watt University.

Whether agritech or agtech, agricultural technology is an area that hasn't quite hit the heights of some other areas of technology venture capital. In this episode, Paul Rous of Regenerate Ventures discusses how and why that is changing, with a more promising future ahead.Paul starts by talking about the history of agtech, talking about why it hasn't taken off as it might and what the barriers have been. He then moves onto how the world is changing, with agtech getting increased attention from both entrepreneurs and funders and how this is changing the area radically.We also dig into some of the themes that Paul has seen. He highlights the difference in attention that the consumer side of food has received versus the "upstream" end. We also talk about the agricultural industry, its structure, regulation and how changes in these are now helping agtech develop.Finally, in our favourite questions, Paul puts forth some strong views on the current state of ESG in the EIS fund and VCT industry and what needs to change there.LinksRegenerate Ventures - https://www.regenerate.ventures/Paul Rous on LinkedIn - https://www.linkedin.com/in/paul-rous/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:The Innovator's Dilemma by Clayton M ChristensenBioPaul RousManaging Director, Regenerate VenturesPaul Rous is a Founder and Managing Director of Regenerate Ventures, the UK's only agricultural focussed venture capital fund. He is also a Co-Founder of the UK’s first agritech accelerator, Shake Climate Change and has been a consultant on digital agricultural innovation for international companies.Paul has been involved in investment, innovation, and agriculture for over a decade, having founded two venture capital funds, Fuel Ventures and Blackfinch Ventures. He has also been involved in the launch and scale of tens of companies and had over five successful exits. After serving as an Officer in the Army and at Goldman Sachs, he took an active role in the family's multi-generational arable farm in Suffolk.Paul has an MBA from Imperial College London and is a PhD Candidate at Cranfield University.

In venture capital investing it is easy to focus on the excitement of doing deals, but the reality is all the hard work happens after the investment is made. In this episode, Ben Leslie of Puma talks about how fund managers can support companies and help them achieve their goals.In a wide ranging discussion we cover many areas. Ben discusses how and where he provides support. He talks about the importance of relationships, and how fund managers need to make sure they are the ones that get called for help by adding value when they do. We also dig into the balance investors have to strike between helping businesses and not getting too involved. We talk about recruitment, how that can be a challenge for founders and the different ways a fund manager can help.We also look at how the support that companies requires vary over time. Ben talks about how they invest at a certain stage and specialise in support at that point, but are also prepared to take a company further if necessary.LinksPuma Investments - https://www.pumainvestments.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:Lean Startup Eric RiesJeeves and Wooster books by P.G. WodehouseBioBen LeslieDirector, PPE, Puma Private EquityBen Leslie is an Investment Director at Puma Private Equity, a leading VCT and EIS provider. Ben joined Puma in 2018 from Deloitte and brings a keen focus on social purpose businesses having managed successful investments into Connectr, Everpress, and Puma’s early years education positions. Ben is responsible for the firm’s investment activity in Scotland.

Venture builders has only one representative amongst SEIS and EIS fund managers, but Andy Davidson of Nova strongly believes it will become more important in the future. We get him to explain how venture building works and why he's so bullish.We start off digging into venture building, using Nova's business as an example. We talk about finding founders, founder/venture builder fit and how ideas can be developed. We discuss how doing small experiments can build evidence over time to support companies and justify further funding.Andy also talks about how the model works at a practical level, including how services are provided, how that changes as companies grow and the challenge of when companies should fly the nest. He also highlights the benefits of the model in challenging times and how it can be used to give entrepreneurs more time to develop their product, market or business. In our favourite questions, Andy talks about the challenges of the EIS industry and how he thinks it could be many times bigger.LinksContact Andy Davidson at andy@wearenova.co.ukWe Are Nova (for founders and investors) - https://www.wearenova.co.uk/Nova Growth Capital (for investors) - https://invest.novagrowthcapital.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:Grapes of Wrath by John SteinbeckLean Startup Eric RiesFour Steps to the Epiphany by Steve BlankBusiness Model Generation by Alex Osterwalder, Yves PigneurBioAndy DavidsonCEO, NovaAndy is a serial tech entrepreneur having co-founded more than 100 tech businesses either directly or through Nova throughout his career. Andy started as a software engineer before his entrepreneurial career where he has spent the past 12 years creating and managing growth-focused EIS & SEIS investment portfolios.

Raising money through angels or fund managers is something that most management does, at best, infrequently. For SEIS, EIS and VCT money, it is often the first time founders have sought equity. Richard Cooper of Oxford Innovation Finance has advised many companies in the past and is now a fund manager, so has lots of experience to help founders prepare.We start with some of the basics, such as whether a company should be raising money at all and what sort of money it should look for. We then discuss the practical things that can be done, and the importance of the pitch and data rooms. Richard gives some great insights into some of the little things founders can do to impress potential funders. He also highlights the value of education and some of the resources and support founders can get.Richard also discusses the process of seeking a funder. He talks about how to shortlist potential angel syndicates and fund managers and, when you have a choice, how to differentiate between them. He also highlights the advantage of a warm introduction. Finally, we discuss some of the common mistakes that founders make when fundraising, most of which are easily avoided. LinksOxford Innovation Finance - https://www.oxfordinnovationfinance.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books:Young Bloods: Revolution 1769-1795 (The Wellington and Napoleon Quartet) by Simon Scarrow (first in series of 4)Lean Startup by Eric RiesBioRichard CooperManaging Director, Oxford Innovation FinanceRichard is the Managing Director of Oxford Innovation Finance. He has been working with early-stage companies for the past twenty years, both in the UK and Australia in both a funding and business advisory capacity. Having developed two early-stage software companies himself, he has advised on hundreds of early-stage companies to develop their growth strategies and raise them funding as a result. This allows Richard to be able to identify companies with strong growth potential and advise them if needed. Richard has an MSc in Marketing from the University of Leicester and post graduate qualifications in applied finance and project management. Richard also has a CFA Certificate in Investment Management and the foundation course in Private Equity from the Australian Venture Capital Association