Meetings & Investment Process
- EOS runs 6 meetings a year at which our members are usually presented with 3 investment opportunities per meeting. These investment opportunities have been carefully selected from dozens of applications, not only for their science or technology excellence, but also for their market potential, management team and exit potential. They will be predominantly (but not exclusively) Scottish based businesses, often spin-outs from Scottish universities. They will generally be pre-revenue.
- The objective of the Syndicate is to identify for our members exciting new science and technology businesses which require an initial round of equity funding and which have a strong possibility of a successful exit for the investors, typically within 3 to 5 years
- Members can bring a family member, or a friend who may be a potential member, as a guest to the meetings.
- The meetings are formally organised with an agenda going out two weeks in advance setting out details of the presenting companies including business plans, financial forecasts, and investment summary. This allows members to decide if they are interested in attending that particular meeting. As things progress there will also be occasional update presentations from businesses which have already received an investment from EOS members.
- Following the presentations from the businesses seeking investment, each member makes their own personal investment decisions. There is no obligation, nor commitment, for a member to make any investments. Members may decide to club together to make an investment offer to a particular business, or they may invest individually. There will be no investments made by the Syndicate as a whole.
- The typical seed funding investment requirement for any one opportunity is likely to be in the range of £20k to £500k. This investment would usually be provided by a small group of the Syndicate’s members who have a mutual interest in that particular investment opportunity. Where possible the members’ investments will be leveraged by matched funding from public sector loans or equity investment, or via co-funding from other angel syndicates.
- It is likely that out of the 12-18 investment presentations given to the members in a year, only a few of these will secure funding from the Syndicate’s members. If they choose to make an investment, the typical investment range for an individual member may be anywhere between £5k and £25k depending on the level of funding being sought and how many other members are participating in that investment, but is not limited to this level.
- The Syndicate strives to present tax efficient investment opportunities which are eligible for schemes such as the HMRC Seed Enterprise Investment Scheme (SEIS). The member, or group of members, who make a particular investment offer are party to the full due diligence process which the Syndicate’s gatekeeper manages on their behalf. Any external professional fees for the due diligence and the transaction will be paid for by the investee business under the terms of the investment offer.
- If an investment offer is made by a member, or a group of members, they will usually nominate one of the Syndicate members, or the Gatekeeper, as a Non-Exec Director to represent the investors on the board of the investee business. The fees for this Non-Exec Director member will paid for by the investee business and agreed as part of the investment offer.
- The investee business will formally report back to EOS on a regular basis.
Management of the Syndicate
The Syndicate is managed by a ‘not for profit’ company limited by guarantee (EOS Syndicate Management Limited - reg. no SC478867).
The syndicate members elect the board of this management company annually. The board consists of a small number of EOS members and external professional advisors who.
The Board members’ profiles are shown on the Syndicate’s website, however all other members’ identity will not be publicised.
The management company is responsible for managing the Syndicate’s finances and financial reporting. Copies of the board minutes and the Syndicate’s accounts are made available to all members.
There is a secure Dropbox account through which all documentation is shared with members confidentially.
The day-to-day administration of all the investment applications and the short-listing of suitable opportunities is carried out by a Gatekeeper appointed by the Management Company.
Gatekeeper of the Syndicate
The management company appoints a gatekeeper to run all the day-to-day aspects of the Syndicate, which include:-
The appointment and terms of the contract with the gatekeeper are subject to annual review and approval by the members.
Membership & Transaction Fees
There is an annual membership fee of £250 which runs from the member’s date of joining the Syndicate and covers the 6 meetings during the year. There is a £250 transaction fee charged to each member participating in an investment.
There are no further costs charged to the members by the Syndicate. The membership and transaction fees cover the management costs for the Syndicate and any other associated costs such as room hire, website etc. Management accounts are presented to members at every meeting.
The Syndicate has its own bank account into which membership fees are paid. All finances are then controlled and managed by the management company on behalf of the syndicate.
If members choose to make an investment offer they will decide the terms of their offer and will agree any external transaction costs involved with the investee business as part of their offer.
A PDF copy of the full syndicate overview and membership rules can be downloaded below.
Profile of the Gatekeeper - Kevin Grainger
Kevin has a successful track record in the commercial software sector. Having gained a B.Sc. in Physics at St. Andrews University he then embarked on an entrepreneurial career in IT which has spanned over 30 years.
Kevin was a semi-finalist in the Ernst & Young ‘Entrepreneur of the Year Awards’ in 2001 and 2003 for his involvement in two of the IT businesses which he co-founded, and has since exited from.
More recently he acts as a mentor and advisor for young technology businesses. Kevin has both the technical and business acumen to be able to objectively vet the many applications which will come in from new technology businesses.