Mercia is a Midlands-based manager of EIS funds, which made a
statement in 2014 when it raised £70m via an AIM listing. They are
growing and a good investor for early stage companies looking for sub-
£500k.


£50k – £5m


Any sector, and any geographic area


Product/Service ready to launch, Making early sales, Funding for growth.


West Midlands EIS and SEIS funds


“Mercia Fund Management is one of the leading technology investors in the UK. We work in partnership with pioneering UK businesses, both with financial support and our expertise, to help accelerate future growth.”


Pre-investment Traction: An idea on paper might claim that it can disrupt an entire industry, but unless the founder has demonstrated this through an MVP, interactions with potential users, or early revenue, we have little reason to believe it or part with our money.

Track Record: A great deal of our most successful companies are led by industry veterans who have had previous successes. They know how to build great businesses because they have already been through the process before. For younger founders, they might not have necessarily grown and exited their own business before, but they have demonstrated their ability to execute by leading projects within larger companies or in organisations outside of the workplace.

Sector Experience: We like to back people that know their sector better than anyone else. This could either be through them having them worked in the industry previously, or through them having a specialist understanding of a technical area due to advanced study.

Passion: Unless the founder cares enough about the success of the company to be able to shoulder the hard times, the journey to success may prove too difficult.

Empathy & Self Awareness: We spend more time communicating with our founders than working on spreadsheets. As a result we look for people that we can get on with, who understand the importance of good relationships and the power of networks, and who get just how integral this all is to building a good business.

Early Stage:

  • UK companies achieving sales of £0.2m or less
    Be less than two years old
    Seeking investment of up to £300,000 (typically of a maximum of £1m to get to exit)
    Have fewer than 25 employees
    Should demonstrate a clear route to generating positive EBITDA within two years of our investment
    Should be able to generate dividends within three years of our investment and provide a credible exit plan within four to seven years Late Stage Investment
    UK companies achieving sales of £10m or less
    Have fewer than 250 employees
    Have a referenceable sales pipeline
    Have a strong management team ideally with a track record of delivering investment returns
    Seeking investment of up to a maximum of £2m to get to exit
    Should either be EBITDA positive or demonstrate a clear route to generating positive EBITDA within two years of our investment
    Should be able to generate dividends within three years of our investment and provide a credible exit plan within four to seven years

Internal investment committee


Example companies


Soccer Manager

Online multiplayer football management game played globally in 39 languages.

Why they invested

The vision behind the project and proven success to date makes Soccer Manager an ideal addition to their portfolio of innovative gaming companies with disruptive technologies.

www.soccermanager.com

Impression Technologies

An aluminium forming company, specialising in developing processes that maximise the strength and lightweight properties of aluminium.

Why they invested

Dr George Adams, CEO of Impression Technologies, already had a wealth of experience within the automotive industry, combined with the company’s groundbreaking processes, made Impression Technologies, an ideal investment.

www.impression-technologies.com

Braintrain 20:20

Combines wearables, apps and consumer electronics to deliver the perfect night’s sleep, has received a total of £485,000 from Mercia Fund Management and notable angel investors, including senior sleep specialists and healthcare entrepreneurs.

Why they invested

“We have wanted to explore the consumer personalised healthcare market for a long time, and we are particularly excited about Braintrain 20:20, which has the potential to become industry-leading given the sector expertise of the team. The technology could also be modified for other health issues, thus allowing people to take control of their health, whilst decreasing the burden on stretched health services.”

braintrain2020.com