New £2m S&T startup fund the first of many as ET Capital levels playing field

ET Capital wants to make injecting funds into Cambridge’s thriving startup ecosystem much more accessible to investors, particularly individuals.

The fund will seek to back a broad range of technology-based businesses to enhance its risk and return profile – and to offer the benefits of the attractive SEIS and EIS tax relief schemes where appropriate.

The appropriately named Cambridge Venture Index (CVI) SEIS/EIS Fund follows an index-style diversified investment approach by backing a broad range of early-stage businesses originating in the Cambridge cluster rather than focusing on a few selected startups.

ET Capital believes this strategy has the potential to reduce risk while still benefiting from the strong returns that the best Cambridge cluster businesses are capable of achieving.

The ET Capital team has analysed the performance of nearly 200 companies within the Cambridge cluster over the past 30 years to validate that this approach can achieve superior returns to the stock market or to a conventional, selective venture capital investment strategy.

The fund is the brainchild of ET Capital’s directors, James Griffiths, David Gill and Martin Rigby, who have worked with early-stage investors and startups for over 30 years.

Notable recent successes include the flotation of ADC Therapeutics SA on the NYSE in 2020 for $1.3 billion and the acquisition of Carbon Engineering by Occidental Petroleum in 2023 for $1.1bn cash.

Martin Rigby says: “We want to offer participation in the Cambridge cluster to the widest possible range of people; to democratise investment to coin a phrase. By using a diversified, ‘index’ approach to investment, we can reduce risk and generate good returns for individual investors who might otherwise be unable or unwilling to invest in the cluster.

“This is a key point for us; by making the fund more attractive to more people, we can increase investment in the cluster and ultimately benefit the communities it supports. This is what we mean by democratising investment.”

Beyond investors, the fund aims to provide consistent, predictable seed capital to startups by collaborating with incubators and commercialisation offices.

Rigby adds: “We are committed to being a reliable, long-term partner for universities, accelerators and incubators, ensuring that capital is available for their startups that are consistent with our investment approach.”

The fund will exclusively invest in science and technology-driven startups within the Cambridge cluster. The diversified portfolio will span multiple sectors and technologies, ensuring broad exposure to innovation.

To capitalise on this opportunity, ET Capital plans to launch a series of funds starting with CVI S/EIS 1. James Griffiths explains: “Our first fund, Cambridge Venture Index SEIS/EIS Fund 1, will invest in 10-15 startups from April 2025 to March 2026.

“This fund is geared toward individual investors looking to support and benefit from Cambridge’s long-term success. We recognise that many of those people will themselves have contributed directly to the cluster’s growth which is why we see the fund helping to democratise investment in Cambridge’s future success.

“For individual investors, this combination of diversified investments and tax advantages (through SEIS and EIS) presents a unique opportunity to engage with the UK’s innovation economy. Investors will also benefit from ET Capital’s extensive network enabling access to high-quality deal flow from Cambridge’s leading incubators and investment originators.

“We plan to launch further funds structured for the needs of institutional investors and family offices, as well as individual investors, following the same diversified index approach.”

• For more details about the Cambridge Venture Index Funds and investment opportunities, contact Martin Rigby or James Griffiths at ET Capital – info@etcapital.com