“At Moscar, we have carved out a niche in the pre-Series-A space, investing in dynamic cash neutral/positive, bootstrapped companies. Working in close partnership with our portfolio, we prepare them for a successful Series-A raise, targeting a minimum 3x increase in valuation. We’ve had a fantastic start, with a year one NAV of 39%. However, with multiple Series-A raises planned for this year, with all trending for a 4x – 6x uplift in valuation, 2021 is looking to be a truly vintage year for Moscar Capital.”
Leo Davies, CEO, Moscar Capital
- Year 1 Net Asset Value was 39%
- Currently all portfolio companies are on-side and trending at a minimum 3x return, making Moscar ahead of schedule to achieve their targeted 5x return for investors.
- Moscar are currently managing a Series A raise for one of their portfolio companies at a 5.4x increase in valuation when compared to Moscar’s entry point.
Moscar Capital target companies at a specific stage of growth, rather than being sector or geographically specific. They target cash neutral companies valued at less than £10m GBP, so the company has proved there is a market for their product but still needs support getting them to a successful Series-A.
By focusing on companies with a bootstrapped cap table they can ensure that CEOs are heavily committed to the enterprises whilst also needing support to attract larger Venture Capital funds for future funding rounds.
Unique Investing Methodology
Moscar are very hands-on with their portfolio companies, getting them ready for a Series-A raise within 18-24 months. They look to fill in any gaps which could make attracting larger venture capital funds difficult, such as: board formulation, ensuring internal systems/ processes are highly professional (e.g. CRM, accountancy) and advising on government/ EMI schemes. As they target cash neutral companies their investment is used purely for Capex purposes to drive revenue growth.
They will then model the company for expansion, overseeing the production of all documentation for the larger raise including producing detailed cohort analysis. Moscar can then manage the Series-A raise, including promotion, setting up meetings and dealing with aftercare with investors.
Moscar has enjoyed a year one NAV of 39% and are currently managing a Series A raise for one of their portfolio companies at a 5.4x increase in valuation when compared to Moscar’s entry point. With 3-4 more Series-A raises planned for the next 12 months, and all trending for 4x – 6x increase in valuation, they expect an even bigger uplift in 2021.
Leo Davies, CEO, has over 10 years experience managing investments for HNWIs and corporates. Prior to Moscar, Leo has managed several private equity investments with his network, all exciting for between 3x and 9x.
Tim Marchant, CIO, has worked in alternative finance for over 15 years. He has operational experience in various regulated fund structures and jurisdictions including managing the private equity acquisitions for a large family office.
Moscar is targeting a 5x return on investment over the 7 year duration of the fund and 18 months in they are ahead of schedule. Moscar is based in the British Virgin Islands and employs a GP/ LP structure. The annual management fee is 2% with a 20% carry once a 7% hurdle has been achieved.