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Love Ventures Fund II

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 II (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 an 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.

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At a glance

Investment goal

Growth

Relative risk

High / Adventurous. Capital at Risk.

Risk 7

Invests in

FinTech

PropTech

ConsumerTech

 


Target Return

2.72x return after seven years

Not a reliable indicator of future income.

 


 CURRENT STATUS - OPEN

Open to new investors. The fund will close on the 31st of October 2021 (subject to the Investment Manager’s discretion to close at a later date).

The minimum investment is  £25,000 (subject to the Investment Manager's discretion to accept smaller amounts).

 

 

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
    We are looking for companies with all the capability and skills to deliver across the founding team. Therefore, every company we invest in will usually have a highly technical Chief Technology Officer (CTO). The founding team must 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 large, normally £5Bn+ TAM.
  • Validated and scalable business model
    The Fund identifies companies that have a validated business model and that are poised to scale. We will also seek to verify that the company understands the core business metrics that are driving its success. Companies must typically be generating £10k+ in monthly recurring revenues. We are quick to dismiss metrics such as app downloads.
  • Proprietary technology
    The Fund will invest in technology companies. We expect each Investee Company 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. We will carry out extensive due diligence to ensure the company has registered for patent protection for the 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 and creates a profitable business 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, we are focused on helping Investee Companies raise Series A funding. Globally on average, less than 25% of companies that raise a seed round successfully go on to then raise Series A investment8. From Seed to Series A, the chances of a successful exit nearly doubles. Our aim is to deliver 100% conversion from Seed to Series A. Our belief is that all of the Fund I investee companies are currently on track to achieve this.
  • Follow-on funding & dilution
    The Fund aims to keep around 50% of 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 ten investments and keep an amount available in follow-on funding. This amount will also be available for companies from Love Ventures Fund I which are raising subsequent funding rounds. Each subsequent investment will have to be approved by the Investment Committee, both in terms of the size of the investment and the deal terms.

Examples of management's previous investments


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Love Ventures Fund II

Investor Charges

Initial Upfront Fee 3%
Annual Management Charge (payable up to a maximum of four years) 2%
Transaction Fee 0.25%
Performance fee 20%

Note: Should an investor be introduced by the Angel Investment Network (AIN), the Initial Upfront Fee will be 5.6% of the amount raised via the Angel Investment Network (AIN).

Investee Company Charge

Initial Charge 2%
Dealing Charge 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 II 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. 

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View Love Ventures Limited website.