The Eos Innovation Fund

The Eos Innovation Fund seeks to capitalise on the global commercial potential of emerging scientific, technological and engineering innovations.

Invest In The Fund

The Legacy of Scottish Innovation

Scotland has long been recognised as a country that produces ground breaking innovations in science, engineering and technology. A large part of this heritage has stemmed from Scotland’s world-class research universities. It also has a rich history of talented and ambitious entrepreneurs who have commercialised their innovations.

Eos Innovation Fund

Investment in SEIS and EIS Qualifying Companies working on innovative products in science, Technology & Engineering. In pursuing such issues, they not only have a positive impact on the world around us, but they also have the potential to deliver the greatest commercial returns. Eos work with founders to build the foundations of companies that matter, targeting global market opportunities.

Disease Diagnosis, Prevention and Treatment

Eos will target companies that are developing technologies that; support earlier clinical diagnosis, lower the cost of care, and analyse patient data in ways that may lead to new insights.

Food and Water Security

Eos will target companies addressing global issues with sustainable food production. This could be novel technologies for non-animal protein, technologies to optimise agriculture and methods to boost farming yield.

Energy Security, Climate Change and Pollution

Eos will target companies that develop technologies to reduce green house emissions. Eos will always seek companies that are developing alternative materials to plastic and also technologies to remove plastics from the environment.

Sustainability of Industrial Processes and Infrastructure

Eos will target companies that are developing innovative technologies and methods that can be used in existing industrial settings to increase the efficiency of those industries.

Investing in the Fund - Step by Step

The Funding Gap For Early Stage Companies

Our Funding window. From spin out through to Series A with a VC or PE Investor.

We expect to exit each investment in a 5 to 8 year timeframe – but the nature of early stage investing is such that it is not possible to be definitive on the period an investment may be held.

Early stage companies, and particularly those addressing commercial opportunities that exploit new technologies and processes have no trading history and cannot access traditional financing options. Often, they have not yet reached the ‘market-ready product’ stage, and are rarely generating revenue.

 

 

Although the UK has a vibrant equity/risk investment market there is a recognised lack of early stage investors, particularly outside of London. Hence, early stage companies that are often targeting significant commercial opportunities face a clear and well understood funding gap.

Very few funders are willing to back these nascent ventures, because of the inherent risk and a lack of understanding of the often- complex underlying science, technology and engineering involved.

The team at Eos not only have the background and network to understand the science and technology present in these companies, but have also founded, and run innovative high growth companies previously.

Eos also has a clear idea of the role that we play in the funding ecosystem of young companies.

Eos invests as the first equity investor in an emerging business and often as the company is spinning out of a University.

Eos targets businesses who are chasing global commercial opportunities and who will need future growth funding from established routes such as venture capital or private equity. We provide them with sufficient funding to develop their proposition to a point that it becomes valuable and attractive to such follow-on funders, and those looking to acquire the business.

Where appropriate, Eos Advisory will take a seat on the board of each company we invest in. This allows us not only to monitor performance, but also to get to know the founders and support them in building their team and in growing the business. This support might come in the form of broad strategic help, or specific advice in relation to legal issues, taxation, marketing and crucially – team building.

Eos work with the management teams to identify and deliver clearly identifiable milestones to full commercialisation. These milestones serve two purposes; they provide valuable validation points for future funders; and – critically – provide value inflection points for both the business and our investors.

The Investment Cycle - Origination to Exit

1

Deal Origination

One of Eos’s key responsibilities is to find suitable companies for the Eos Innovation Fund to invest in. We have strong relationships with the Universities in Scotland and find them to be a strong source of innovative businesses. We also source opportunities through our broader network of contacts and businesses.
2

Due Diligence & Transaction

Due diligence is critical in helping us to manage risk exposure, and it lays the groundwork for supporting the businesses that we select for investment. Eos carries out extensive due diligence in collaboration with professional advisers, handpicked for their experience in the relevant sector. We spend time researching market dynamics to assess whether the company’s product is the right fit with the right route to market. We unpick the company’s business plans, financial projections and budgets to understand how they will use the investment and what their prospects for growth are. Finally, we get to know the founder and the team they have built to help them grow the business.
3

Active Portfolio Development

Eos believe that the management team is the biggest influence on business success and we invest a lot of time in working with and mentoring leadership teams. We always take a seat on the board of each company we invest in. This allows us not only to monitor performance, but also to get to know the founders and support them in building their team and in growing the business. This support might mean come in the form of broad strategic help, or specific advice in relation to legal issues, taxation, marketing.
4

Exit

The ultimate goal for each portfolio company is to achieve an exit event, thereby enabling the Eos Innovation Fund to produce a profitable return to Investors. The businesses may be acquired by other parties (such as bigger company in the same industry or a private equity firm) or listed on a stock exchange. At the time of the initial investment, it is impossible to know how long a company might take to reach an exit. Eos will work closely with the companies during any exit process.

Risks

Investing in early-stage businesses carries a high degree of risk and Investors may lose all or part of their investment. Investors need to be comfortable with the level of risk to which they are exposed. Where appropriate investors should seek specific advice on tax and investment matters from suitably qualified advisors. Some of the key risks inherent in investing in early stage businesses are identified here.

Invest in the Fund.

If you would like to invest in the Fund, please complete the form below and the Investment Memorandum, Application Form and Investor Agreement will be emailed directly to you. Before deciding whether to invest in the Fund, it is important that you read the Key Information Document carefully.

The minimum investment amount is £25k and investors must either be; a High Net Worth individual or a sophisticated Investor.

Interested in the Syndicate Instead?

If you would prefer to make your own investment decisions then you can join our angel investment syndicate.

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