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Love Ventures Fund I

Investing in early stage companies which seek to leverage technology.

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What is the aim of this fund?

"We believe the fund offers a unique opportunity to gain access to
these fast growing companies.
"

Marcus Love, Love Ventures VC Limited

The Love Ventures Fund I (the "Fund") will invest in early-stage companies which are leveraging technology in a post-Covid world to accelerate their growth. We’re looking to partner with exceptional founders in the FinTech, PropTech and ConsumerTech sectors.

The Fund offers a unique opportunity to gain access to these fast growing companies. The team is laser-focussed on finding these opportunities, often off-market, and uncovering the next gems of tomorrow. The team have a strong background of identifying visionary founders and helping bring them from seed stage up to series A. This is an identified funding gap in the UK market where we can add value and assist companies with their growth up to series A and beyond.

Marcus LoveKey IndividualsMarcus Love has 14 years of experience as a FCA approved financial professional in London. He worked most recently at William O’Neil+Co, the US headquartered equity research firm between 2011-2019. He successfully built an angel network that has invested in approximately 20 early stage businesses during the last five years.

Marcus is supported by a team of experienced investment professionals with backgrounds in venture capital, private equity and entrepreneurship.

REQUEST KEY INFORMATION & APPLY ONLINE

At a glance

Investment goal

Growth

Relative risk

High / Adventurous

Risk 7

Invests in

Fintech

Proptech

Consumer tech

 


Target Return

2.57x return after seven years

Not a reliable indicator of future income.

 


CURRENT STATUS - OPEN

Open to new investors. The fund closes 31 December 2020. The minimum investment is £25,000.

Fund Details

Investment Strategy

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The Fund is looking for ‘category creators’ in the FinTech, PropTech and ConsumerTech sectors. The Fund has a number of criteria that help us measure a company as a category creator. The criteria we look for are:

  • The right team, technical capability and founder-market fit
    The Fund is looking for companies with all the capability and skills to deliver across the founding team. Therefore, every company it invests in must have a highly technical Chief Technology Officer (CTO). The founding team must also have at least one team member with expert knowledge of the market they are operating in.
  • Large Total Addressable Market (TAM)
    The sectors the Fund is focused on are all very large markets but the total addressable market of the exact field the company is disrupting must be well researched and at least £25Bn+ TAM.
  • Validated and scalable business model
    The Fund is looking to identify companies which have a validated business model and that can also scale. We also want to verify that the company understand the core business metrics that are driving its success. Companies must typically be generating £10k+ in monthly recurring revenues. The Fund will be quick to dismiss vanity metrics such as ‘downloads’.
  • Proprietary technology
    The Fund will invest in technology companies. The Fund expects each portfolio business to have technology at the core of what they do and the product must have unique features that build a defensible moat around their business model and customer base. The Fund will be checking that the company has registered for patent protection for their intellectual property around their technology.
  • Path to profitability
    Sensible revenue and profit projections should be based on existing validation and metrics. The business model must be operating in a way that generates more customers, creates a profitable business and in a realistic timeframe.
  • Probable Series A within 12-18 months
    As seed stage investors working in the equity gap between seed and series A, the Fund is focussed on helping Investee Companies raise series A funding. Globally on average, less than 25% of companies that raise a seed round are successful in then raising a series A investment. From seed to series A, the chances of a successful exit nearly doubles. The Fund aims to deliver 100% conversion from seed to series A.
  • Follow-on funding & dilution
    The Fund will have limited capacity for follow-on funding into investee companies. Beyond the minimum number of six investments into Investee Companies, the Fund expects to make a total of eight investments and potentially have an amount available in follow-on funding if the Fund capacity is reached. This may be enough to participate in a few subsequent funding rounds, but won’t be enough capital to participate in all future funding rounds. Investors therefore should be aware that the Fund’s investment into an investee company has a risk of being diluted in the future.

Examples of managements previous investments

Coconut.

Coconut is a smart accounting tool for self-employed people. It’s a simple, easy-to-use app with expenses, invoicing and tax all in one. Simply connect your bank account and get going in minutes.


Find out more
Revolut Ltd

Revolut, one app for all things money. From your everyday spending, to planning for your future with savings and investments, Revolut helps you get more from your money.


Find out more
Stashbee

Stashbee believe that finding storage and long term parking should be easy (and less of a hassle than needing it in the first place). Having built a platform that connects people who have unused space with people who need it for storage and parking.


Find out more
Love Ventures

Investor Charges (Needs updated)

Full initial upfront fee (see note below) 3%
Annual management charge 2%
Administration charge 0.25%
Performance fee 20%

Note: The initial upfront fee will be 6% of the amount raised
via the Angel Investment Network (AIN).

Investee Company Charge

Initial charge 2%
Annual management charge 0%
Transaction Fee 0.25%

 

Please check the fees section of the Information Memorandum for full details. All fees and charges are stated exclusive of VAT, which may be applicable in some cases. Any fees and charges payable by the investee companies or the underlying businesses do not directly come out of your investment. However, they will effectively reduce the returns generated by investee companies and therefore directly impact your investment.

REQUEST KEY INFORMATION & APPLY ONLINE
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INVESTOR SUPPORT CENTRE

If you have any questions regarding the Love Ventures Fund I or the application form - please feel free to contact us.

Important Information

Eligible Investors

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To invest, you must be an eligible investor. To be an eligible investor, you must be qualifying as one or more of the following:

Risk Warning

Important information for private investors – Reliance on the information provided here to engage in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. Your attention is drawn to the risk section contained within the Information Memorandum. Investments are typically in unquoted shares in small companies, the value of which can be volatile and are often difficult to sell. Nothing on this website constitutes investment, tax, financial, legal, regulatory, or other advice by Sapphire Capital Partners LLP.

The value of an investment may go down as well as up, and you may not get back the full amount invested, and you may therefore lose some or all of your investment.

If you are unsure of the suitability of any investment for your circumstances, please contact your independent financial advisor or other professional advisor authorised under the Financial Services and Markets Act 2000 (FSMA) who specialises in advising on investments of this type. Tax reliefs depend on individual circumstances. There is no guarantee however that the tax reliefs (such as EIS reliefs, CGT reliefs or IHT relief) will be available on any investment made or that if it is initially available, it will not be subsequently withdrawn. Any references to tax laws or rates are based on current legislation, all of which are subject to change and are provided as a guide only. Prospective investors are advised to take their own investment and taxation advice and should consult their own professional advisors on the implications of investing.

Investments made in investee companies via funds managed by Sapphire Capital Partners LLP are not covered by the Financial Services Compensation Scheme (FSCS). For more details, please contact us or refer to their website: https://www.fscs.org.uk

Past performance is not a guide to future returns. 

REQUEST KEY INFORMATION & APPLY ONLINE

View Love Ventures Limited website.