The fund will look to invest in UK technology companies with an established revenue stream and proven technology that are starved of new capital for expansion.
Stellar believes that demand for EIS’ will increase both this year and next as high earners seek alternative tax efficient investments.
It says valuations of technology companies are currently depressed and there are few experienced providers of capital actively investing in this sector.
Stellar has joined forces with specialist manager Accretion Capital to launch the new fund.
Stellar chief executive Jonathan Gain says: “The pre-Budget Report has highlighted the need for investors to use Enterprise Investment Schemes that actually assist smaller companies. We are therefore delighted that we can offer the investment management expertise of the Accretion team supported by the tax efficient structure of an enterprise investment scheme.