The Haatch EIS Fund invests in B2B software companies solving deep pain points for customers.
Business overview
| Location | Stamford, United Kingdom |
|---|---|
| Social media | |
| Website | www.haatch.com |
| Sectors | SaaS/PaaS Digital B2B |
| Company number | OC421829 |
| Incorporation date | 5 Apr 2018 |
Business highlights
- Team with over £100m in personal exits
- 3 portfolio exits, including one for 276x*
- Co-investing with British Business Bank
- EIS benefits of up to 30% income tax relief
Pitch
About Haatch
Haatch began out of the frustration and experience of having investors with limited entrepreneurial experience; they’d done the theory but never lived out the practical. Scott Weavers-Wright OBE and Fred Soneya founded Haatch and started investing in technology companies under the Haatch Angel brand.
Haatch has now invested in over 100 companies across the UK, Ireland, and Europe and have learnt:
• Business operators and founders with experience taking companies from 0-to-1 are the most valuable
• Sales and product are the most important levers
• Pain is the biggest driver of a purchasing decision for a buyer
With these truths and other learnings, Haatch has evolved strategically into a Pre-Seed & Seed investment fund investing in business-to-business software companies solving deep pains and/or creating massive impact for organisations.
Investment Strategy
As previous serial entrepreneurs, we’re practical investors who focus not on theory but on ruthlessly seeking out founders who know their customers' problems and have built superior products to solve them. Our Seed Stage EIS Fund focuses on companies already generating a minimum of £10k in monthly recurring revenue.
Our Seed Stage EIS Fund strategy is simple;
• Business-to-business Software (B2B)
• Minimum of £10k MRR
• Evidence of generating a sufficient pipeline of potential customers and demonstrating you can convert them to paying customers
• Well-defined ideal customer profile with evidence of potential customers that fit that profile in your pipeline
• Raising for a minimum of 18 months runway
Traction & Key Accomplishments
With our entrepreneurial experience and support our investee companies have grown from infancy to sign huge commercial contracts with large enterprises that are beating incumbents. This is reflected in our oldest fund, which is still relatively young yet is currently held at 3.6x within 5 years*, and we’ve been shortlisted for multiple awards.
The Haatch Angel Fund exceeded targets, with highlights including:
• Veritonic raising their $7.5m Series A at a 22x uplift from the valuation of Haatch Angel’s original investment;
• Elevaate returning over 276x to Haatch Angel from its SEIS investment;
• Iterate AI now a double-digit million annual, Haatch having initially invested when they were pre-revenue.
Please note, past performance is not a reliable indicator of future results.
Team
Our team covers a wide spectrum of experience that our Founders can lean on, with accomplishments like:
• Building and selling Kiddicare.com to Morrisons for £70m
• Building a company from £0 to £20m+ revenue
• Leading Google’s Android Partnerships globally
• CEO of a $1.2bn revenue business
• Building and selling Elevaate within 4 years and returning 276x to SEIS investors
Fund Terms
There is no ongoing annual management charge to either investors or portfolio companies. This approach was taken to provide complete transparency and to eliminate ongoing costs to Investors which in traditional funds compound over many years, in some cases into large double-digit % charges.
Initial Investment fee: 10% - there is no ongoing annual management charge or any other charge to either investors or portfolio companies.
Performance fee: 25% of returns to investors if the ROI is over 1x but up to 5x subscribed amounts, and if ROI is equal to or greater than 5x 30% of the excess of returns above 5x subscribed amounts. Fees are charged on a whole portfolio basis.
Key Information
EIS Fund
Haatch EIS Fund (the “Fund”) pools funds from multiple investors in order to invest in a portfolio of 4-6 companies. Investee companies are selected with the EIS criteria in mind, including age, size and location of business. The Fund is structured in such a way that investments are eligible for EIS tax relief. Please note, tax relief is dependent on individual circumstances and may be subject to change in the future.
For further information on how EIS Funds work, please refer to this page:
https://www.seedrs.com/insights/blog/haatch-eis...
Key Information
Please refer to the “Documents” section of the campaign, which includes the key relevant documents for the investment opportunity.
Direct Investment and Data Processing
Please note, investors in this round will be making a direct investment in the Haatch EIS Fund. Seedrs Nominees Limited will not act as nominee for investors and investors will be Platform Direct Investors for the purposes of the investment agreement entered into between investors and Seedrs.
By investing in this campaign, you acknowledge and agree that you have read and understood the relevant documents in the “Documents” section of this campaign and agree to be bound by them.
Details of your investment will be submitted by Seedrs to Haatch on your behalf. In so doing, we will be sending the information set out below (, which includes certain of your personal data) and your investment monies, to Haatch in order for them to admit your investment into the EIS Fund:
(i) Your name, email address and residential address; and.
(iii) Your investment amount.
Investment Holding
Investors in this campaign will hold an interest in the Haatch EIS fund and will be beneficial owners of the companies into which the Haatch EIS fund invests. The Haatch EIS Fund’s nominee, Mainspring Nominees Limited, will hold the legal title to the shares issued by the Fund’s investee companies.
Haatch will be responsible for providing investment updates and tax certificates via the Seedrs Business Page and will send distributions to investors directly.
Investor Fees
1. Initial Fees:
Haatch charges a simple investor fee model which covers initial set-up, onboarding, and other ongoing costs in a one-off 10% fee, netted off from each investor’s investment.
Seedrs will charge investors a standard 2.5% transaction fee upon investment (up to a max. £250).
The remaining capital (net of Haatch’s 10% initial fee and Seedrs’ 2.5% transaction fee) will be eligible for S/EIS tax relief (dependent on the personal circumstances of the investors and is subject to change).
(2) Carry Fee:
Haatch charges performance fees of: (i) 25% of all returns between 1x and 5x subscribed amounts; and (ii) 30% of all returns above 5x subscribed amounts. “Subscribed amounts” for these purposes exclude Haatch and Seedrs’ respective initial fees and the returns are calculated on a whole-portfolio basis.
(3) Ongoing Fees:
Neither Haatch nor Seedrs charges any ongoing annual management fees (neither to investors nor the Fund’s portfolio companies).
UK Investment Opportunity
You can only invest if you are a UK tax resident. Even if your browser does allow you to invest, your investment will be cancelled at a later date if you do not meet the eligibility requirements of being a UK tax resident.
Frequently Asked Questions
How will I be updated on the progress of the fund?
Haatch will provide quarterly Investor updates to the Seedrs x Haatch post-investment page including:
(i) Investor update videos
(ii) Valuation updates for portfolio companies - held at cost or valued through the latest third-party investment round
(iii) EIS3 certificates will be provided via your Seedrs portfolio for the underlying investee companies.
You will be updated via the quarterly updates in the case that any of the underlying portfolio companies go into administration.
What is the typical investment horizon for an EIS investment fund?
The Haatch EIS fund is designed to be a long-term investment, with a typical target investment horizon of 5 to 10 years.
How does the relationship with the British Business Bank work?
In 2022, Haatch secured a £10Million commitment from British Business Bank Investments, a wholly-owned commercial subsidiary of the British Business Bank to fund early-stage businesses across the UK as part of its regional angel program. This allows Haatch to deploy further funding from British Business Investments in any EIS investment they make. More information here - https://haatch.com/investors/british-business-b...
Does investing via Seedrs differ from investing directly into the Fund?
No. Investors via Seedrs are direct investors in the fund. Seedrs Nominees Limited will not act as nominee for investors and investors will be Platform Direct Investors for the purposes of the investment agreement entered into between investors and Seedrs.
Please see the Key Information tab “Direct Investment and Data Processing“ for more information.
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