EA Fund 3 

  Early Stage Capital  

  

  Enterprise Angels  

This offer is being made to you under the terms of Schedule 1 of the Financial Markets Conduct Act 2013 which require that you are a “Wholesale Investor”. The Manager reserves the right to amend the eligibility criteria under this Offer if required to as a result of regulations made after the date of publication of this Offer under the Financial Markets Conduct Act 2013.

Overview

EA Fund 3 is a unique opportunity for wholesale investors to gain a diversified portfolio of early stage investments without a huge amount of capital or time commitment. EA Fund 3 is brought to you by Enterprise Angels, one of the largest and best resourced angel investment networks in New Zealand. Enterprise Angels connects experienced early stage investors with curated investment opportunities.

Since launching in 2008, the angel network has facilitated the investment of over $40 million in 78 different early stage and established businesses across a variety of industries. Enterprise Angels believes that growing innovative, socially and environmentally responsible companies is the key to ensuring people, communities, businesses, the environment, and the economy thrive.

With the launch of EA Fund 3, Enterprise Angels plans to build on the successes of EA Fund 1 and 2 and its wider portfolio of innovative companies. Some highlights include:

  • 11 positive exits across the portfolio
  • 10 portfolio companies have successfully raised Venture/Series A funding
  • EA Fund 1 launched in 2014 – 16 portfolio companies – 12% IRR
  • EA Fund 2 launched in 2016 – 20 portfolio companies - 8% IRR
  • Investors in both funds received distributions at the end of 2018

Investing in early stage companies is high risk and potentially high reward. Diversification and due diligence are critical! 

  • Each fund investment undergoes a rigorous due diligence and negotiation process and is backed by experienced early stage investors. 
  • Investing in EA Fund 3 will provide you with a diversified portfolio of up to 30 early stage companies depending on the final fund size. Our investment guide, The Importance of Diversification, looks at some angel stats and why diversification is particularly important in this space.

 

Key terms of EA Fund 3

  • The minimum size of the Fund is $2 million.
  • Investment will be via investment units in EA Fund 3 Limited Partnership via EA Nominee Limited (unless by special arrangement) to more easily enable secondary market transactions.
  • Issue price will be $1.00 per unit, with NZ$0.10 payable on application and the balance payable in tranches over time.
  • The minimum commitment is for 30,000 units for $30,000, payable in tranches. Further capital commitments must be made in multiples of 5,000 units.
  • An application fee of 2% of Committed Capital is payable upon application.
  • A management fee of 2% per annum of total Committed Capital will be charged in years one to five and 2% per annum of Invested Capital thereafter.
  • A performance fee of 20% will be charged on distributions to investors once an amount equal to the capital plus returns has exceeded an internal rate of return (“IRR”) of 10% per annum.
  • The Fund will be a closed fund i.e. once the Fund is closed for initial subscriptions, there will be no further opportunity to invest in the Fund.
  • The Fund will look to invest in the first four years and operate for up to 10 years.
  • Proceeds from liquidating investments will be distributed to investors, not invested back into the Fund.
  • The Fund will invest in high growth potential companies from a range of sectors and stages per below:
    • Sectors:
      • Agtech
      • Technology, Hardware & Equipment
      • Software & Services
      • Food & Beverage
      • Medical – Human
    • Stage - Seed and Startup
    • Location - New Zealand


Issue Type:
Early Stage Capital
Sector:
Diversified
isEOI: true

Investment Details

Investment Type: Wholesale

Transaction Size:NZD 2,000,000.00

Committed Capital: 

Pre-money valuation: 

Minimum Capital Raise:NZD 2,000,000.00

Share Price:NZD 0.00

Unit Price:NZD 1.00

Minimum Investment Size:NZD 30,000.00

Advisor

Enterprise Angels

Website: http://www.enterpriseangels.co.nz/fund-3

Email: investment@enterpriseangels.co.nz

Phone:07 571 2520

Document Name Description Last Update Date
EA Fund 3 Information Memorandum 2019 Offer Document for Enterprise Angels EA Fund 3 13 May 2019 Preview/Download
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