Launch of the Stellar Nova EIS Fund
Stellar has chosen to partner with Nova to provide an EIS option with a unique investment approach, which we believe will provide strong returns to investors.
As well as offering attractive EIS tax breaks, the Stellar Nova EIS Fund aims to provide exposure to a different type of investment compared to many other EIS funds.
Nova continually works with start-ups which has enabled them to organise a cohort of seven to ten investments which provides visibility and assurance that funds will be invested promptly.
Key partnership highlights
- Fast deployment of funds – Next cohort closing date 26 November 2021
- Visibility of likely EIS investments – these companies have been mentored and supported by capital from the Nova Cofoundery model for approximately a year – the pipeline document provides details of the current targets.
- Quick EIS3 forms – target 31 January 2022 (subject to HMRC working practices).
- Opportunity to participate in this unique EIS to take advantage of Nova’s specialist investment strategy and methodology.
We believe this is a compelling opportunity, as it offers the attractive range of EIS reliefs provided to those willing to invest in high risk, potentially high growth technology start-ups, as well as an opportunity to take advantage of Nova’s specialist approach.
Why we have chosen to co-invest an EIS fund with Nova
Nova operates a Cofoundery model where they supply founders with the services of approximately 100 staff in areas such as software and hardware engineering, web design, product development and a core team of mentors.
The Cofoundery approach allows different kinds of founders to take forward their ideas with Nova which may not be possible in the wider EIS market. This fund is essentially a new pot of investments to seek winners. This process has also been designed to reduce the number of failures in start-ups.
Nova has the resources to enhance business start-up opportunities and has a unique approach to backing founders including:
- Specific criteria for selecting founder businesses
- Nurturing approach to these businesses
- Clear methodology and support to reduce failure rate
- Mentoring from a large group of experienced entrepreneurs
- Focus on problem solving
- External expert support to founders based on their fields, experience and connections
We have partnered with Nova because we recognise that financial advisers would find this Fund a valuable option for their clients.
Who are Nova?
Andy Davidson, Nova’s CEO, 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.
Talking about their vision for Nova, Andy Davidson explains that:
“The founder journey for me was broken, and I believed I could do something to improve it.
That’s what we wanted to achieve when we established Nova, and I hope that’s what Nova’s become. The better way for founders to start a start-up.’’
What makes Nova stand out?
Nova is a venture builder specialising in building early stage, knowledge intensive, EIS & SEIS eligible technology businesses.
Nova does this with a unique empathy toward those sitting on both sides of the table, both investors and business founders.
As opposed to many investment houses, Nova has an operating model that is proven to improve the performance of early stage ventures. They have an enviable track record of both investing in and also co-founding successful early stage businesses with entrepreneurial founders for over 10 years now.
Being able to leverage Nova’s ‘Venture Building’ business model gives Stellar the ability to offer investors a direct route to the large and varied portfolio spread of growth focused technology start-ups.
The success rate of their start-ups is five times higher than the industry average which mitigates a lot of the risks that have been traditionally involved in investing in early stage businesses.
It’s Nova’s ability to do this without incurring the costs that other providers do in sourcing the deal flow, that has allowed them to develop a unique EIS investment product that maximises the benefits for both investors and the businesses it’s deployed into.
We are delighted to be working with Andy and the Nova team to bring this opportunity to a wider market.
If you would like to find out more about the Stellar Nova EIS Fund, click here to visit the dedicated webpage or contact a member of our team today on 020 3195 3500.
Stellar Asset Management Limited does not offer investment or tax advice or make recommendations regarding investments. Prospective investors should ensure that they read the brochure and fully understand the risk factors before making any investment decision. The value of investments and the income from them may fall as well as rise and is not guaranteed. No assurance or guarantee is given that any targeted returns will be achieved. Forecasts of potential future results are not a reliable indicator of actual future results.
Stellar Asset Management Limited of Kendal House, 1 Conduit Street, London W1S 2XA is authorised and regulated by the Financial Conduct Authority.