About This Fund
Mercia EIS Fund is a UK-based enterprise investment scheme fund managed by Mercia Asset Management (AIM: MERC), a publicly-listed specialist private capital investor with approximately £2 billion in assets under management. Operating since 2013, the Mercia EIS Fund has established itself as one of the UK's most active regional venture capital programs, deploying over £134 million across more than 150 companies. Managed by Mercia Fund Management, through a dedicated 48-person Ventures division led by Managing Director Will Clark, the fund occupies a distinctive position in the UK private capital ecosystem by combining EIS tax-efficiency with an investment strategy that explicitly focuses on high-potential technology businesses in regions outside London and the South East, areas that are chronically underserved by mainstream venture capital.
The Mercia EIS Fund targets early-stage, disruptive technology companies across multiple sectors including healthcare and life sciences, software, deep technology, gaming, and advanced materials. Mercia's investment thesis centers on businesses with modest initial capital requirements, clear scalability pathways, and multiple identified exit routes, typically investing at seed and early-stage rounds where regional presence provides genuine proprietary access. With physical offices in 11 UK cities including Birmingham, Manchester, Sheffield, Leeds, Bristol, Newcastle, and London, and partnerships with 19 UK universities, Mercia Fund Management maintains deep local knowledge and network effects across the UK's diverse regional innovation ecosystems. Approximately 78% of the fund's portfolio companies are based outside London, reflecting the manager's commitment to deploying capital where UK innovation originates rather than concentrating it in the capital.
Since inception in 2013, the Mercia EIS Fund has invested £134.2 million across a portfolio of more than 150 companies, with £31.6 million returned to investors and a remaining portfolio balance of £102.7 million as of March 2025. The fund's most notable exit was nDreams, a leading VR gaming studio sold in 2023 for £90.3 million, delivering a 7.6x return to investors. The fund targets an overall portfolio return of approximately 2.5x over a five- to seven-year horizon and is closely coordinated with Mercia Asset Management's broader platform including its VCT vehicles and private equity capabilities, enabling a "Complete Connected Capital" follow-on infrastructure that supports portfolio companies through multiple growth stages. Mercia Asset Management's £180+ million partnership with the British Business Bank further underscores the fund's role as a cornerstone of the UK regional innovation finance ecosystem.