Invest alongside people who have built and sold technology companies.
Are you interested to learn more about making tax efficient investments in UK based technology companies? Do you want to join our syndicate and be part of ESM’s hands on approach to investing? Are you perhaps new to investing and want to learn from other more experienced investors? Or maybe you are tired of investing in EIS funds where companies are chosen by others and you do not have any contact with the company founders once your money is invested? If yes, get in touch with ESM and consider joining the syndicate. The ESM syndicate typically invests £250k to £1m per company, ensuring each investment round has SEIS and/or EIS tax advantages for ESM members. There are currently no fees to join the ESM syndicate.
A club of investors, not a fund.
ESM is a collective of like-minded investors who have built and sold businesses, done well in corporate life, or in some instances inherited wealth, and who want to support and invest in early-stage technology companies. These companies will be UK based, using a business-to-business model and be SEIS or EIS qualifying.
ESM hosts events quarterly and presenting companies are qualified using a proven initial due diligence (DD) process prior to the events ensuring each company has satisfied investment criteria set by ESM. The collective offers founders and CEOs of companies seeking investment a wealth of start-up and scale-up operating experience. The club has invested together since 2011.
What experienced angels get from ESM.
- 01Diligenced deal flow.Every company including the founders’ background, directors and board members are checked before the pitch event, and deeper due diligence is supported by a sector/domain expert ensuring each opportunity is carefully qualified. You see the findings.
- 02A lead investor in the round.ESM typically leads, negotiates the terms and provides board representation, so you’re not a passenger.
- 03Our money goes in too.Steven Morris invests in every company members back, at the same time and on the same terms.
- 04Established co-investors.Members invest alongside other syndicates, corporate investors, family offices and public sector investors, all facilitated by ESM.
- 05A track record since 2011.22 companies backed, with exits including TS3 Services at 10×.
You see every opportunity. You decide on each one.
- 01
Due diligence first
Every company considered for investment enters an initial due diligence (DD) process prior to being invited to an ESM pitch event. The DD is shared with ESM members.
- 02
Pitch at an ESM member event
Up to three new investment opportunities are presented at scheduled quarterly events. ESM members are invited and indicate in principle whether they have an interest to invest or not.
- 03
Deeper diligence and investment decision process
Deeper DD is undertaken by a sector or domain expert. Investment decisions are taken by ESM members individually.
- 04
The syndicate invests as a collective
There is no maximum or minimum limit on individual investment amounts. Typically ESM will lead the investment round but will occasionally invest with other syndicates, corporate investors, family offices and/or public sector investors.
- 05
Portfolio companies are monitored post investment
Founder, financial, operational and technical-product development reports are shared with ESM for distribution to members. ESM provides board representation for members. And bi-annual review reports are shared with members.
Tax-efficient investing.
Investments made through ESM may qualify for the Enterprise Investment Scheme (EIS): 30% income tax relief on investments of up to £1m a year (£2m where the excess is in knowledge-intensive companies), limited to your income tax liability; tax-free gains after three years; unlimited deferral of capital gains reinvested; loss relief; and inheritance tax relief after two years.
The earliest-stage companies may instead qualify under the Seed Enterprise Investment Scheme (SEIS).
Tax treatment depends on individual circumstances and may change. ESM does not provide tax advice — take independent professional advice before investing.
What membership gives you.
- 01Co-invest alongside experienced investorsFounders and operators who have built and sold technology companies, investing on the same terms as you.
- 02SEIS and EIS tax advantagesIncome tax relief, tax-free gains, capital gains deferral, loss relief and inheritance tax relief, subject to eligibility.
- 03Quarterly member eventsUp to three new opportunities and a portfolio update at every event. Free to attend, with time to network before and after.
- 04No feesMembers do not currently pay fees for membership, and events are free to attend. ESM is compensated by the companies that raise investment.
- 05Active portfolio managementBoard representation or attendance rights, and bi-annual revaluation of shareholdings.
Every quarter.
ESM hosts an in-person member event every quarter. Presentations are made by up to three new investment opportunities, alongside an update on the investment portfolio, followed by discussion with the ESM leadership team.
Events are free to attend and are usually hosted in Edinburgh or Glasgow, or in other cities across the North of England. There is time to network before and after.
Attend a forthcoming event.
Leave your details and we will be in touch with the date and venue of the next ESM member event.
What members ask.
- 01Is ESM a fund?No. ESM is a group of private individuals that syndicated their money to invest as a club. Every individual makes his/her own decision to invest and the club invests as a collective.
- 02Which organisation selects companies for presentation at events?The ESM management team with help from other ESM members.
- 03Is there a fee for new people to join?No. Members do not currently pay fees for membership, and events are free to attend.
- 04Are ESM members expected to invest in every company?No. ESM members see every opportunity and decide for themselves. ESM members indicate in principle at the event they attend whether they wish to invest or not.
- 05How much is invested in each company?Typically £250k to £1m per company per round, invested as a collective, often alongside other syndicates, corporate investors, family offices and/or public sector investors.
- 06What tax relief is available?Investments may qualify under EIS: 30% income tax relief on up to £1m a year (£2m where the excess is in knowledge-intensive companies), tax-free gains after three years, deferral of reinvested capital gains, loss relief and inheritance tax relief after two years. The earliest-stage companies may qualify under SEIS. Tax treatment depends on individual circumstances and may change. ESM does not provide tax advice — please take independent professional advice before investing.
- 07How often do you meet?Every quarter, in person but sometimes using a video link, with up to three new opportunities and a portfolio update at each event, usually in Edinburgh or Glasgow or in cities across the North of England.
- 08What happens after an investment is made?Financial and operational reports, board representation or attendance rights, and a bi-annual revaluation of shareholdings.
Join the syndicate.
Get in touch to find out about membership and the next member event.
Risk warning
Investments of this kind are high risk. You may lose all of the capital you invest. These investments are illiquid and you are unlikely to be able to sell quickly. Tax treatment depends on individual circumstances and may change. ESM Investments Limited does not provide investment, tax or financial advice — you should seek independent professional advice before investing.
ConfirmSolicitor review — risk warning wording, and whether a financial promotion statement is required (ESM is not FCA authorised)