Unicorn India, a Mumbai based early stage VC has collaborated with British counterpart Ascension Ventures to launch a cross-border evergreen fund between two countries.
Dubbed as “Unicorn Ascension EIS Fund“, it is an open-ended fund (Enterprise Investment Scheme)that aims to raise up to Rs. 45 crores ( £5 million approx) per year with investments at the pre-series A stage across 6-8 UK-based startups building products and services relevant to the Indian market.
An Enterprise Investment Scheme, abbreviated as EIS is a tax relief scheme offered by UK government that allows investors to avail income tax relief for their investments into small companies based in the UK.
Chair of the audit committee at Koovs and former partner at KPMG UK, Nina Amin will lead the investment committee for the cross-border fund which will support UK-based startups looking to enter the Indian market
Commenting on the recent development Jean de Fourgerolles, Partner, Unicorn Ascension EIS Fund and Founder, Ascension Ventures said,
The fund represents a double benefit, where EIS tax reliefs afforded to UK investors can significantly reduce their capital risks both on the upside and downside. Hence we are seeing a lot of interest from investors to invest here and are also talking to family offices for potential investments
The first close for the fund is predicted at $2.3 Mn (15.5 Cr) by July end while the investment deployment is scheduled to go from September 2018.
Ascension Ventures been managing SEIS (Seed Enterprise Investment Scheme) and EIS funds across equity and debt since 2012 and was founded in 2001 committing $125 Mn to invest in expansion to late-stage healthcare companies.