Octopus Ventures EIS Service
Powering pioneers
closed
Closed for new investment
Octopus Ventures EIS Service
Powering pioneers
closed
Closed for new investment
The Octopus Ventures EIS Service gives investors the opportunity to access pioneering businesses with high growth potential. Investors hold a portfolio of around 10-15 early-stage companies selected by our Ventures team, one of Europe’s largest.
We have previously backed some of the UK’s most successful entrepreneurs, making early investments in companies like:
Reasons to invest
High growth opportunity
We have a track record of identifying and supporting companies from the start of their journey to household name status. Our aim is to provide a 10x return on your initial investment, although we can’t guarantee this.
Large investment team
With a team of more than 90 investment professionals, we have one of the largest venture capital teams in Europe. The team also manage Octopus Titan VCT, the UK’s largest VCT.*
*Association of Investment Companies, June 2023
Interests aligned with investors
We’ll only collect our annual management charge if we sell a company for more than we originally invested. That way, you know we’re incentivised to select companies that have a strong potential to succeed.
Reasons to invest
High growth opportunity
We have a track record of identifying and supporting companies from the start of their journey to household name status. Our aim is to provide a 10x return on your client’s initial investment, although we can’t guarantee this.
Large investment team
With a team of more than 90 investment professionals, we have one of the largest venture capital teams in Europe. The team also manage Octopus Titan VCT, the UK’s largest VCT.*
*Association of Investment Companies, June 2023
Interests aligned with investors
We’ll only collect our annual management charge if we sell a company for more than we originally invested. That way, you know we’re incentivised to select companies that have a strong potential to succeed.
Key risks
Capital is at risk
The value of an EIS investment can fall as well as rise. Investors might not get back the full amount they invest.
Tax treatment
Tax treatment depends on individual circumstances and tax rules might change in the future. Tax reliefs depend on companies maintaining their EIS-qualifying status.
Volatility and liquidity
Investments in smaller companies can fall or rise in value much more sharply than shares in larger, more established companies. They can also be harder to sell.
Long term investments
Investors need to hold shares for three years to keep any tax reliefs claimed. However, investors should be prepared to hold their shares for significantly longer to allow time for growth and exit.
“Deployment speed is one of the best of any manager without pre-determined allotments.”
– MJ Hudson, EIS Summary Review, February 2023
Six to twelve-month deployment target
Average deployment time is 9.5 months, although this is not guaranteed. This is calculated from when the fundraising group moves to deployment phase, until all funds are invested. This is the average over the last five fully deployed fundraising groups. As at 31 March 2023.
Diversified portfolio
A diversified portfolio of around 10-15 companies across five sectors: health, fintech, deep tech, business-to-business software and consumer. These companies are handpicked by our teams who have specialist sector knowledge.
Attractive suite of tax reliefs
There’s a suite of valuable tax reliefs available as an incentive for investing in high-risk small businesses. These reliefs include 30% income tax relief, tax-free capital gains, loss relief, capital gains tax deferral and inheritance tax relief.
Portfolio companies
To give an idea of the sort of companies investors can expect us to back, here are some examples of revolutionary EIS-qualifying businesses we’ve invested in. These companies are changing the way we shop, live and work.
First invested: June 2021
XYZ Reality
An engineering-grade augmented reality solution, enabling construction teams to accurately position 3D holograms onsite before building begins.
First invested: December 2021
Biofidelity
Early cancer diagnosis can save lives. Using revolutionary genomic analysis, Biofidelity has developed precise diagnostics for early detection of cancer and genetic mutations.
First invested: November 2021
HURR
There’s no place for fast fashion in a sustainable future. HURR is changing the behaviours of fashion lovers everywhere, by making high-quality pieces available to rent rather than buy.
First invested: November 2022
Cobee
Employee benefit schemes have become essential as companies battle to attract the best talent. Cobee provides seamless benefits management for businesses and a flexible platform for employees.
First invested: December 2022
Little Journey
Undergoing a healthcare procedure can be a daunting experience for anyone, especially for a child. The Little Journey app helps put children and families at ease by using immersive and interactive content.
First invested: November 2021
Kleene
An AI driven platform that allows companies to easily manage their data in a fast and scalable way.
First invested: January 2022
Vira
Combining data, clinical best practice, and behaviour change, to solve health and quality-of-life problems that affect billions of women worldwide.
Backing founders who can change the world
The Octopus Ventures EIS Service is managed by Octopus Ventures, one of Europe’s largest and most active venture capital teams. Their deep expertise across specialist areas of investment – business-to-business software, consumer, deep tech, fintech and health – helps to identify and support founders whose ideas have the potential to change the world. Watch the video to hear what drives the innovators we’re backing.
The investment process
Applying for the Service
Identifying opportunities for your portfolio
Investing your money into EIS-qualifying companies
Issuing your EIS 3 tax certificates
Selling your investment (when liquidity is available)