Last month 18 month old Sitka made its first foray into external fundraising with the launch of Health Fund VCT. The fund is also the first VCT to focus exclusively on investments in the health sector. The objective of the investment vehicle is to provide private investors with an attractive return from a diversified portfolio of investments in fast growing companies in health, life sciences and business services. The investment focus will concentrate on four different sectors therapeutics and diagnostics; devices and instruments; healthcare services; and lifestyle and wellbeing. Potential portfolio companies should have a high quality team, a validated technology, a commercially viable business and a clear path to profitability.
Sitka sources deals in three ways: through the firm’s industrial advisory board, personal contacts, proactive sourcing of deals through idea and strategy pitches to entrepreneurs, small and medium size companies, and large pharmaceutical and healthcare companies, and through its network of university contacts, accountants, brokers and head hunters.
Sitka partner, Dr Louis Nisbet, says: “There is a very clear equity gap in this sector. Every entrepreneur looking to raise between GBP1 million and GBP5 million will tell you how difficult it is. The number of investors professionally interested in that range is limited. With the VCT, we are filling this gap.”