Growth-Focused Technologies | GBI 11 | November 2018 by Clifton Media Lab

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GROWTH- FOCUSED TECHNOLOGIES

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CONTENTS CHAPTER • 1 News

A round up of industry news

CHAPTER • 2 Governance in the World of Business Relief

Dr Brian Moretta, Head of Tax Enhanced Products at Hardman & Co, on why advisers need to look at the quality of governance behind business relief products

Pushing the Boundaries in Life Science

The innovative life sciences sector is offering advisers a wealth of investment opportunities, says Andrew Aldridge, Head of Marketing at Deepbridge Capital.

The Exiteers

Bringing you news of successful exits in the sector

The New Kids on the Block

An investment showcase bringing you the newest offerings from the sector

Bold New Businesses are right Here on our Doorstep

Jo Oliver, Manager of the Octopus Titan VCT, says the UK has a wealth of opportunities in billion-dollar tech

Preview of Upcoming Events

Mark Brownridge talks us through EISA’s upcoming conference on Effective Financial Planning using EIS and BR, and Modwenna Rees-Mogg tells us what’s in store at the 2018 VCT EIS Investor Forum

The Autumn Review: The good The bad and The ugly

Apart from the occasional speed bump, 2018 has proved relatively benign for investors so far, says Darius McDermott, Managing Director of Chelsea Financial Service

CHAPTER • 3 Open Offers

Our listing of what’s currently available for subscription

Disclaimer

such, no reliance may be placed for any purpose on the information and opinions set out within it. Past performance is no guarantee of future performance. The value of shares in any investee companies may go down as well as up and investors may not get back the full amount invested. Investors should not consider investing unless they can afford a total loss of their investment. Investments in unquoted shares carry higher risks than investments in quoted shares and involve a degree of risk as well as the opportunity of reward. It may be difficult to sell or realise the investment or obtain reliable information about its value. Any tax reliefs referred to in this publication are those currently applying or expected to apply. However, readers should be aware that tax reliefs and legislation can change. Their applicability and value will depend upon the individual circumstances of a given investor. Whilst the investments set out within may qualify for EIS and other tax advantageous breaks, there is no guarantee that EIS status or other tax efficient status can be maintained throughout the life of the investment. Both investee companies and investors need to comply with the requirements of the EIS legislation in order to maintain EIS Relief and non-compliance may result in the loss or partial claw-back of EIS Relief and potential interest penalties. The material in this yearbook is not to be regarded as an offer or invitation to buy or sell an investment, nor does it solicit any such offer or invitation, nor does it seek to endorse any particular investment product. Any information it contains is given in good faith, but no reliance should be placed upon the same. Applications to invest in any investment product referred to within should be made to the relevant promoter. GBI Magazine neither endorses any particular member, product or company/firm wishing to raise money under the EIS nor does it accept any liability for advice given. GBI Magazine is published by and a trademark of IFA Magazine Publications Ltd, Arcade Chambers, 8 King’s Road, Bristol BS8 4AB, Telephone 01173 258328 @2018 all rights reserved.

GBI Magazine is for professional advisers only. All material has been carefully check for accuracy but no responsibility can be accepted for inaccuracies. Wherever appropriate independent research and where necessary legal advice should be sought before acting on any information contained in this publication. The information and offers contained in this yearbook may not be suitable for all investors. Readers should be sufficiently aware of the risks and ensure that they are of a suitable category as defined by the Financial Services and Markets Act to review and invest in any of the potential offers or funds. The information given in this publication is not to be construed as advice relating to legal, taxation or investment matters. The information contained in this yearbook does not constitute or form part of any offer to issue or sell, or any solicitation of an offer to subscribe or purchase any investment, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with any contract. This yearbook is aimed at UK Investors and is not aimed at persons who are residents of any other country, including the United States of America and South Africa where the funds referred to herein are not registered or approved for marketing and/or sale and where the dissemination of information on the funds or services is not permitted. The information provided in the yearbook is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution, publication or use would be contrary to local law or regulation. The information contained herein may not be reproduced, distributed or published by any recipient for any purpose without the prior written consent of GBI Magazine. No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained in this publication. As

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GBI Magazine is for professional advisers only. GBI Magazine is a trademark of IFA Magazine Publications Limited. No part of this publication may be reproduced or stored in any printed or electronic retrieval system without prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies, independent research and where necessary legal advice should be sought before acting on any information contained in this publication.

What do we mean by ‘government backed’? In the interests of clarity, any reference made by GB Investments to the point that EIS, VCTs and similar investments are government backed relates to the government’s general approval of these schemes, indicated by their having granted them highly tax advantaged status. The use of this term does not imply that government would in any way act in the capacity as a guarantor or backer of last resort in connection with such schemes.

WELCOME In the lead up to what we know is a busy time for advisers, managers, and investors we have a selection of interesting articles for you in this issue on growth-focused technologies. As you will see, some of our contributors are making a strong case for continued investment in innovative technologies, homegrown R&D in the life sciences offering roll-out stability while we wait to see what is in store with the dreaded Brexit. With this in mind Andrew Aldridge of Deepbridge Capital outlines the case for continuing to push the boundaries in the life sciences and Jo Oliver of Octopus Titan VCT discusses the wealth of opportunities in tech-driven areas. Brian Moretta of Hardman & Co, offers a salutary note on why advisers need to look carefully at the governance behind business relief (BR) products and Darius McDermott from Chelsea Financial Service looks back on how investor opportunities fared in 2018.

GB Investment Magazine Âˇ November 2018

Along with our regular features on exciting new exits, and newest offerings in the sector we have a preview for you on two not-to-be-missed events in November and December. Our Open Offers section is now brought to you in partnership with GrowthInvest and you can see exactly what opportunities are currently available. As ever, we love to get your feedback so do get in touch. All the very best and enjoy GB Investments issue 11! Alex Alex Sullivan Managing Partner CML | GBI Magazine | IFA Magazine

News

FORESIGHT WRAPS UP DEAL IN POSTWORKS Foresight Group has made an investment in Postworks on behalf of the Midlands Engine Investment Fund (MEIF). This is Foresight’s third MEIF investment since its launch in February. Postworks is an online franking company providing small and medium sized businesses with a softwarebased alternative to franked business post. Using Postworks’ software platform, businesses can ‘drag and drop’ their post for electronic sorting, printing and folding at Postworks printing centre before being handed over to the Royal Mail for delivery. The Northampton-based company was launched late 2016 by James and Marvee-Lisa Booker. The investment will support the continued growth of the company with the recruitment of additional staff to add to their product development team. Over the next five years Postworks plans to open eight strategically placed print centres to reduce

the transport of physical mail items and take steps to making post a more environmentally friendly communication channel. Additionally, funds will be used to enable focus on operational development and the creation of new technologies to increase production capacity. James Booker, Founder and Commercial Director of Postworks, said: “We are removing the barriers that the SME market faces when sending post, like long franking contracts and complicated pricing structures. More importantly, we are giving the postal industry a much-needed push into the digital age and we are looking forward to working with Foresight and the wider team on this.” Rodney Appiah, Director at Foresight Group, added: “We are very pleased to have made this investment into Postworks and look forward to working with James and Marvee-Lisa to scale this innovative and disruptive technology business. Postworks is a great fit for the Midlands Engine Investment Fund and a good example of the vibrant start up community in Northampton.”

GB Investment Magazine · November 2018

News

ARCHOVER OPENS NEW OFFICE IN BIRMINGHAM ArchOver, the P2P business lending platform, has opened a new office in Birmingham. The firm said it was expanding into the West Midlands and opening up new flows of capital for SMEs operating in the region. The move is in contrast to traditional banks which are divesting from hubs outside London and further centralising their operations in the capital. Leading the Birmingham office will be David Newton, who began his career as a Chartered Accountant at Ernst & Young before undertaking a corporate finance and investment banking career in London. He specialises in the provision of finance for SMEs and growth companies. He was the Chief Executive of an AIM-listed international mineral company with operations in the USA and Mexico before moving back to the West Midlands where he has held roles including as the Finance Director of a Software and SaaS business, and as a Corporate Finance Director for a Birmingham-based advisory firm.

GB Investment Magazine · November 2018

Newton said: “Birmingham will soon be connected with 5G, will host the Commonwealth Games in 2022, and the city’s council has revealed that 2017 saw an 11% increase in new business openings. It is a hotbed of innovation and among the top cities in the UK for job creation. Enabling local SMEs to access the funding they need to grow through ArchOver will boost an already thriving business landscape. I’m excited to be part of that process, and am delighted to be supported by such a strong ArchOver team in London.” ArchOver Chief Executive Angus Dent added: “This is the first step on the road to national expansion for ArchOver. We have long supported Midlands SMEs that struggled to secure traditional finance, so opening our first regional office in Birmingham was a natural choice. The region’s many businesses in the manufacturing and supply chain sectors will also enable us to grow our strong portfolio of SMEs in these industries.”

News

The Northern Powerhouse is a Magnet For Overseas Investment The Northern Powerhouse cities of Liverpool and Manchester are proving to be a magnet for sustained overseas interest and investment. Both cities have quickly positioned themselves as two of the biggest economic propositions in the UK. Liverpool is a pivotal cog in the UK’s economic machine. It contributes £28 billion Gross Value Added (GVA), with much more growth expected in both the short and long-term future. Manchester’s economy is currently worth £57 billion. Both cities have an increasing population, strong workforce, buoyant student numbers, more job opportunities in the professional sector and resurgence in its commercial and retail sectors. The need and demand for high quality buy to let accommodation is constant and paramount to the future of the Northern Powerhouse. So, it’s no surprise that overseas investors from all four corners of the globe are flocking to the North West of England for exciting and profitable ventures. When it comes to buy to let property investment, the two cities are streets ahead of their contemporaries and competitors. House prices have grown in the Northern Powerhouse faster and more consistently than anywhere else in the country. The region experienced growth of 5.6% in the 12-month period ending July 2018. London witnessed negative growth of 0.7% across that same period. The wider South East region suffered a similar malaise; only 1.8% of growth in that time. Against the national average of 3.1%, the Northern Powerhouse is racing ahead of every other UK region. Recent research suggests that a clear majority of Middle Eastern property investors will soon be planting their money in the UK, with 13% citing Manchester specifically as the city that they consider the most attractive. A total of 70% of those investors consider the high rental yields in Northern cities, particularly Manchester and Liverpool, as not just better than London’s, but the primary reason for making their investments in the region. Such low starting costs and high rental yields in Liverpool and Manchester are the factors that makes leading property firms such as RW Invest subject to such high demand for high-end, luxury properties in the city. RW Invest offer investors between 7% and 9% returns on their properties in the Northern Powerhouse.

12-month period up to January 2018, Chinese enquiries into property in the region rose by triple figure percentages. Interest in Liverpool soared by 160% during that period. Similar enquiries into Manchester jumped 256%. Far Eastern buy to let investors are, as shown, attracted to the wealth of available luxury property at low starting costs that promise high yields to landlords, who will also have a huge number of potential eager tenants to choose from. London is proving to be of little interest to those same investors. During the year to January 2018, enquiries into London property dropped by nearly half. Developers and property firms are unable to sell their stock. In the second quarter of 2018, almost half of all London new-build sales to investors were in bulk. It is a signal that London’s buy to let market is in freefall; a far cry from the current climate in the Northern Powerhouse. The decrease in overseas investment and interest in London is a trend that is becoming common across the rest of the UK with one exception: The Northern Powerhouse. UK projects driven and funded by foreign direct investment (FDI) have fallen in 2018 for the first time in five years, affecting much of the rest of the country. Inevitably, the trend is reversed in the Northern Powerhouse. In 2016, the Northern Powerhouse was in receipt of 90 FDIs. Of that number, 54 of those were first-time investments from overseas. Liverpool and Manchester attract not only increased investment from abroad but both appeal to new generations of investors who understand what an open and profitable market the region is. Manchester attracted 43% of all direct foreign investment deals in the North West region in 2016. That is a 17% increase in such deals on the year before. The United States was the single biggest overseas investor in the Northern Powerhouse during 2016, with 25 FDIs coming from across the Atlantic. Manchester alone accepted more FDI projects than such notable global cities as Toronto and Barcelona. It is plain to see where investors should place their money. The Northern Powerhouse, particularly Liverpool and Manchester, are the biggest economic hopes in the country. Investors would be wise to take their chances in cities that offer low entry costs, a welcoming market and the chance to make incredible returns on their ventures.

Liverpool and Manchester have experienced huge surges in interest and enquiry from China. In the

GB Investment Magazine · November 2018

News

LAUNCH OF PRIVATE GROWTH LENDING PLATFORM IS A WORLD FIRST The Growth Stage has launched what it claims to be the world’s first funding platform for private growth companies to raise investment capital from regulated institutional investors. The company said it has signed up investors with over $4 trillion of assets under management, from pension funds, retail funds and hedge funds through to sovereign wealth funds and family offices. The Growth Stage was created exclusively to marry the increasing demand from institutional investors around the world, to invest in high growth, scaleup companies, and for those companies to seek alternative sources of capital. Simon Stewart, Co-Founder and Chief Executive of The Growth Stage, said: “Traditionally, it has been very costly and difficult for private growth companies to get access to institutional investors to help finance the next stage of their growth. Institutional investors don’t want to miss out on the opportunity to invest in the leading private highgrowth global companies of today and tomorrow. “A global platform enabling institutional investors and private growth companies to meet, and funds to be raised at low cost didn’t exist, and this is exactly why we have created The Growth Stage. After two years of developing the business with our institutional investors and professional advisors, we are delighted to launch The Growth Stage today.” The Growth Stage has also partnered with 10 of the world’s leading professional advisers, offering its members essential global business services and deal transaction expertise. They are Acuris Risk Intelligence, EY, Gallagher, Merrill Corporation, Sage, The&Partnership, Travers Smith, WeWork, WorldFirst and WSGR.

GB Investment Magazine · November 2018

GOVERNANCE IN THE WORLD OF BUSINESS RELIEF Advisers need to look at the quality of governance behind business relief products, says Hardman & Co

GB Investment Magazine Â· November 2018

When advisers first start looking at business relief (BR) products, there is much to look at: the rules governing such products, investment strategies that are being used and what the investment risk is. It is easy to lose sight that for non-AIM products, the investment is being made directly into a company or partnership rather than a fund. This means it is essential that governance is part of the diligence process. Independent directors In the investment trust/company industry, the concept of independent directors is not only well known, but an argument that has long been settled. For the vast majority of investment trusts, the fund manager is a separate entity from the company that investors own shares in. The manager supplies services in return for a fee. The board has discretion as to how much the fee might be, or whether the manager should remain in that role. Once upon a time, investment trust boards consisted primarily of people connected to the manager, with all the potential for conflicts of interest that that brought. Over time, it was realised that this was a â&#x20AC;&#x2DC;bad thingâ&#x20AC;&#x2122; and it was deemed that a majority of the board should be independent of the manager. Most non-AIM BR products have much in common with investment trusts. Most of the companies have no employees, with managers being paid a fee or having expenses covered for both fund management and company management. What is surprising then, is that over half the products in our database invest into companies with no independent directors.

GB Investment Magazine Âˇ November 2018

This would seem to be important - in private companies, transparency is usually more limited than for quoted companies. From the research we have undertaken, over a quarter of products invest in companies that publish abbreviated accounts rather than full accounts. This is not restricted to the smaller companies: the smallest company publishes full accounts, while some of those with abbreviated accounts are among the larger in the sector. When information is limited, it is hard for investors to validate that companies are doing what they say they are. Potential conflicts of interest There are more concrete areas in which potential issues manifest. Many advisers are aware that potential conflicts can arise. At its simplest, these are the same issues as for investment trusts, such as whether the fees or expenses are appropriate. However, the potential for conflicts in BR runs deeper. Many companies have participated in related party transactions, which take one of two forms. The first is buying assets that were previously under the management or control of the fund manager. Mostly these have been renewable energy assets, such as solar or wind farms that were previously in companies funded through EIS schemes. These can create a potential asymmetry of incentives for the fund manager, who may be due a performance fee for the sale or could lose market credibility for a poor outcome. And while some transactions have been small, others have been significant.

For investment trusts, independent

The second transaction is lending to related parties. Typically, this is making loans to other companies run by the fund manager, for example to fund the construction of renewable energy projects. Again, there is the potential for inappropriate pricing, though generally Hardman & Co views this as being less concerning than for asset transfers. Not only are the loans usually asset backed, but the connection can make diligence both easier and more comprehensive, so there are offsetting benefits.

directors have a

If a company were quoted, then the independent directors would have a key role to play in ensuring that shareholders are being treated fairly. In the BR area, matters are less clear. While the managers we have spoken to have outlined their process for assessing the transaction price, and made these sound reasonable, independent oversight of this process would give some reassurance.

investors are treated

key role to play in ensuring that

fairly. In the BR area, matters are less clear

GB Investment Magazine Âˇ November 2018

Setting share prices Another area that is worth highlighting is the share prices used for transactions. Most of the trades generate revenues from assets that they hold or lend using assets as security. Consequently, share prices are asset based. Over half of products use the net asset value (NAV) from the audited accounts, or the same basis between year ends. However, a substantial minority, all of which invest in renewable energy assets, are using a distinct share price. The rationale is understandable: market values of these assets have moved in a way their accounting does not reflect. Where a company has constructed a project then, if it is successful, the market value should exceed the book value of the investment. However, using valuations that are outside the audit process raises governance questions. From a governance perspective, the manager that has perhaps the clearest approach uses a named external consultant for the valuation and specifies the key assumptions, most notably the discount rate used. The latter is particularly useful for an external analyst, helping with assessments of whether the company will achieve its target returns and allowing easier comparisons with others in the market. Brian Moretta is the Head of Tax Enhanced Products at Hardman & Co and also leads the research of financials stocks and investment funds. He has lectured on actuarial science and financial economics at Heriot-Watt University, is an examiner for the Faculty & Institute of Actuaries and is on the Bankers without Borders Financial Modelling Reserve Corp. He is a former fund manager with a 20-year career in financial services. Brian holds a PhD in Applied Probability and a BSc in Actuarial Maths and Statistics. Hardman & Co are now offering panel, advisory and educational services in the Business Relief market. Please contact Vilma Pabilionyte on 0207 194 7637 or vp@hardmanandco. com to arrange a meeting or call.

GB Investment Magazine Âˇ November 2018

Unfortunately, they are the exception. Most managers are happy to outline the process they use but, while these seem reasonable, the lack of external validation has to be a serious concern for advisers. While the price of electricity has shown some volatility over recent years, the market for the assets appears to have remained solid. This suggests that in the current market, market evidence should converge on a clear valuation basis. If circumstances become less benign, this may become more difficult and an external audit will have more value. This is not to say that there are no issues in the market at present. Given the comments above, it is not surprising that the growth in NAV per share has lagged the share price growth from these companies. In a strong market for the underlying assets, the premium to NAV may be justified. However, having a rising share price when the NAV per share is falling should require further investigation. An adviser should probably be sure that the premium is justified before recommending such products to clients. In the world of quoted investments, governance is a topic that has been getting increased attention. It is probably time that it got the same attention in the unquoted world too.

PUSHING THE BOUNDARIES IN LIFE SCIENCE The innovative life sciences sector is offering advisers a wealth of investment opportunities, says Andrew Aldridge, Head of Marketing at Deepbridge Capital. As we continue to countdown to Brexit, questions are continually raised about the strength of the UK economy, how various industries and sectors will fare after we leave the EU, and what it all might mean for GDP, jobs, growth, wages, innovation, development, technology, and not forgetting the UK’s place in the world both politically and financially. There are plenty of opinions and a large amount of modelling but the reality is, that until we reach the red line and have a better understanding of what Brexit will look like, much is pure speculation.

Tricky situation Advisers no doubt find themselves in something of a tricky position – how can you second-guess what might happen after such a potentially major event? Leaving the EU could be monumental and could impact on all of us, plus UK industry, business, employees and the wider economy for decades to come – or life may be exactly the same post-29 March 2019 as it was before; we simply don’t know yet. In this respect, advisers considering investment opportunities for their clients have something of an ‘impossible job’. The big question is how do you find

the returns required to keep clients happy at a time of great uncertainty? For appropriate clients it may therefore represent a chance to look at unquoted opportunities which are growth-focused Such stocks may also be relatively uncorrelated to the markets, which may also be appealing during uncertain times. Such investments may also offer the investor the potentially significant tax incentives offered by government via EIS and SEIS – possibly offering a degree of downside protection. For those of us working with, and supporting, growth-focused early-stage investee companies, it is therefore important we continue to support those sectors and industries which we expect to continue to deliver quality and growth, even in the face of such significant and ground-breaking changes.

Life science opportunity As well as innovative technologies, one of the major areas we therefore focus on is the life sciences sector because there is a strong pool of UK entrepreneurs – both new and established – that are making big plays here and pushing the boundaries of what was once thought achievable.

GB Investment Magazine · November 2018

GB Investment Magazine Âˇ November 2018

For advisers who may not be familiar with this sector, life sciences (somewhat obviously) focuses on the scientific study of life, whether that be plants, animals or humans, as opposed to physical science, which focuses on non-living matter. Various life science sub-sectors include medical technology, drug discovery, anatomy, genetics, immunology, neuroscience, biochemistry, molecular biology, to name but a few; however, what tends to focus the mind of life sciences businesses – and present an investment opportunity – is they are seeking to improve ‘lives’ through health advances, and often seeking to thereby improve health-economics. Unsurprisingly, given the breadth and depth of the disciplines that make up life sciences, there are a huge number of businesses in this area and what Deepbridge does, as investment manager, is to look for those that need our support/resource/input, who are ‘knowledge intensive’, who have a vision, and have a product and/or service that has the potential to deliver returns on a significant scale.

The scale of science So, why life sciences? What is it about this sector that is most appealing and what is it already delivering to the overall UK economy? A report by PwC titled The economic contribution of the UK life sciences industry, provides plenty of evidence and arguments to show why it’s a sector worth supporting and exploring. For instance: • In 2015, the UK life sciences sector contributed £30.4 billion to the economy – a contribution that comes primarily from the activities of the pharmaceutical, medical technology and biotechnology research companies.

• Again, in 2015, it’s estimated that 482,000 UK jobs were supported by the life sciences industry. • It’s estimated that the industry made a contribution of £8.6 bn to the Exchequer during that year via income tax, NI contributions and Corporation Tax. • Life sciences companies can be found in every UK region and labour productivity in the sector is higher than other major European countries. Now this data does come from three years ago, so it’s fair to suggest that since that time, there has been an improvement in all of those plus points for life sciences. Indeed, Deloitte has looked at the future for the life sciences and developed a range of forecasts about the growth we can expect to see. It suggests that: • Global health care spending is likely to reach $8.7 trillion by 2020 because of aging and increasing populations, emerging market expansion, advances in medical treatment and rising labour costs. • Purely in the pharmaceutical sector, the forecast is at $1.06 trillion worldwide, with spending on research and development predicted to increase by 2.4% until 2022. Deloitte says much of this growth is being driven by the innovation of small, niche companies – a core investment focus for life sciences specialists like Deepbridge. In terms of therapeutic trends oncology leads the way followed by diabetes, rheumatology and antivirals. • Deloitte says the sector is seeing exponential changes in technology. It highlights artificial intelligence (AI), cognitive technologies, automation and computing power as ‘creating a transformation opportunity’ and effectively leading to the ‘industrialisation of life sciences’.

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Deloitte’s analysis is interesting because it highlights how life sciences companies can capitalise on the existing environment but also prep themselves for future changes – and, as we know, there are some considerable ones coming in the UK space. The review says firms should do the following in order to drive the business forward: • Embrace those technology changes mentioned above. • Embrace geo-political changes suggesting that tax reforms worldwide are expected to ‘create both incentives and disincentives for the life sciences sectors and impact future investments’. It cites Brexit as one of these changes that will impact on UK firms and points to the uncertainty around whether ‘the UK’s relationship with the European Medicines Agency will change’. • Build an adaptable organisation for the future of work, citing how automation and tech can be utilised. • Build a culture of courage to help counter uncertainty. • Build data integrity, and maximise the value of that data. • Grow through partnerships and new operating models.

GB Investment Magazine · November 2018

This last point is particularly relevant and important when it comes to the investment decisions made by the life sciences companies themselves, those that we make as a manager, and the choice of manager by advisers when looking to find homes for clients’ investment monies. There has clearly been a shift in terms of access to investment, especially when it comes to start-ups, and accessing funding via ‘traditional means’ is no longer an option for many businesses in this space. This is where managers like Deepbridge come in, and having a specialist focus on life sciences clearly benefits the investee company, the adviser and the investor. What is positive for us and you, as the adviser, is the continuous development and innovation that firms within life sciences pursue and achieve. By having the connections and network to be able to forge relationships with these businesses – many from a very early stage – and to have the EIS/SEIS structure in order to offer these opportunities to advisers/clients, we believe there is an opportunity available to all. Life sciences will continue to be a great contributor to the UK economy, and it’s our belief that even in an uncertain world, it could be an appealing proposition to appropriate clients.

THE EXITEERS Bringing you news of successful exits in the sector Fund: Amersham Investment Management EIS Exit: Two renewable energy investments Details of the fund EIS funds managed by Amersham Investment Management invested in two separate renewable energy anaerobic digestor plants that were built and operated by Future Biogas, a leading biomass energy facilities operator. The first investee company received an initial £5 million equity investment in tranches in September and October 2013. Subsequently an additional £9 million was invested both for capital expenditure and working capital requirements over the period to 31 March 2015. The second investee company received an initial £5 million equity investment in February 2014 and a further £4 million in loans and equity in March 2015. The average length of investment for the first company was four years to exit and for the second company three-and-a-half years. Amersham-managed EIS funds invested a total of £6,225,000 in these two enterprises.

What does the company do? Both investee companies are anaerobic digestion gas-to-grid biomass-fed renewable energy plants. One operated in North Norfolk and the other in Lincolnshire. They both utilised underlying German

and UK technology and were assembled and built by UK engineers to allow them to produce on-site electricity to run the plant and to create and inject ‘green’ gas into the UK national gas grid.

What did the company invest the money in? Building from scratch a new biomass gas-to-grid plant is both an expensive and lengthy process, requiring significant construction as well as accreditation and sign off from various authorities. Both companies started off with brown/green field sites which had planning permission to construct and develop new gas-to-grid anaerobic digestion plants injecting ‘green’ gas into the grid. The investment funds were used in both instances to develop the site and roadways, build the plant, fermentation and storage – mini gas farms and install the pressure and injection capabilities for these 2.2MW equivalent gas-to-grid plants, along with all of the necessary support services, safety elements and feeding mechanisms. Both sites, once operating, were later upgraded to ensure maximum throughput could be achieved. This was funded either by debt or by equity as appropriate. As the plants used feedstock feed, investment monies were also used to pay (mainly in advance

GB Investment Magazine · November 2018

for the maize, barley and rye crops used as break or rotational crops for the wheat crops local farmers were normally used to growing. Debtors required funding for up to 90 days-plus, especially in the early days of operations when accreditation and sign off by regulators could take up to 180 days.

How much was raised? The first investee company received an initial £5 million equity investment in September and October 2013, subsequently an additional £9 million was invested both in capex and working capital over the period to 31 March 2015, of which £4 million was in debt instruments. The second investee company received an initial £5 million equity investment in February 2014 and a further £3 million in loans and £1 million of equity in March 2015.

How was the exit achieved? Following an extensive bidding competition and process, the two operating companies were sold in July 2018 to John Laing Environmental Assets, which is a listed environmental infrastructure fund.

How much was returned to investors? The returns for both investee companies were above the expected return of £1.30 per £1.00 invested gross: Company one returned £1.424 for each £1.04 invested, this was a return of £0.696 on an aftertax relief investment of £0.728 so a return of 95.6% over the average hold period of four years or 23.9% per annum. Company two returned £1.517 for each £1.005 invested, this was a return of £0.814 on an after-tax relief investment of £0.7034 so a return of 115.72% over the average hold period of three-and-a-half years or 34.72% per annum.

GB Investment Magazine · November 2018

What other benefits has the company provided? The essential reasons behind the drive for sustainable renewable energy and the requirement for the nation to be investing in it is well known and hopefully understood. In addition, for creating ‘green gas’, the companies have been able to provide ‘green gas’ certificates to several household name brands to offset other elements of their energy usage, so providing additional funding for the renewable schemes. Feedstocks used in the plants did not detract from the farming sector’s principle aim to provide food because the crops grown for use in the two anaerobic digestion companies are plants replacing other ‘break or rotational crops’ so allowing farmers to benefit from additional revenues which have been invested back into their business. The anaerobic digestion companies each employ a small, dedicated staff of people but also rely on local subcontractors and support folk. The operator of these two facilities, Future Biogas, currently employees more than 70 people across all its operations. Not only do their local economies benefit from the investment but HM Treasury is now seeing a return as the companies start to pay corporation tax.

How will you continue to support the company? Amersham has sold its entire investment shareholding in these two companies, but remains a long-term investor in Future Biogas, operator of anaerobic digestion plants. Funds managed by Amersham continue to invest in SEIS and EIS qualifying companies through the Amersham SEIS Fund and the Amersham Corporate Development Capital EIS Fund respectively. The funds are generalist, investing principally in technology, consumer brands and media companies.

THE NEW KIDS ON THE BLOCK An investment showcase bringing you the newest offering from the sector Investment: Mimica via the Syndicate Room platform Aim: Syndicate Room offers investors the chance to invest in early stage companies Tell us about the investment Mimica is the creator of hi-tech food labels that tell you exactly when your food spoils.

on expected temperature conditions. This ‘safety buffer’ can cut seven days or more from the expiry date, meaning that in most cases food is still fit to eat when it is thrown out.

Reducing food waste is a pressing concern all around the world. According to the United Nations Food and Agriculture Organization, around $1 trillion worth of food is wasted annually. The UK government estimates around £16 billion of that waste occurs in the UK alone.

If consumers were able to know with certainty, in real time, whether their food was still fresh, producers could reduce their buffer and extend expiry dates. This would not only avoid much unnecessary waste in the home, but also reduce waste and increase sales at the retail level and all along the supply chain.

The main reason food gets thrown out early is that producers typically set overcautious expiry dates to cover for possible poor conditions in the supply chain or in the home, rather than setting dates based

Every business raising funding on SyndicateRoom must have at least 40% of its target amount already invested (this is termed ‘lead investment’) and have a named lead investor.

GB Investment Magazine · November 2018

Mimica’s lead investor is R/GA Ventures, which is investing £75,000 in this round. R/GA Ventures helps industry leaders embrace disruption, connecting them with emerging startups, technologies and consumer behaviours to drive their businesses forward. The firm builds its programmes around strategic themes – Internet of Things, commerce and retail, marketing tech, sports and entertainment, tech, media tech and more – and assembles cohorts to support them. “Mimica can tackle large inefficiencies in the food supply chain with a low-cost product based on real innovation. Additionally, there will be emerging value in collected data, and adjacent non-food markets,” says R/GA Ventures. “The company’s leadership has put together the right team to form strategic partnerships and achieve scale, while building a protectable consumer-facing brand. The technology is now in production scaleup development with their industry partners. Early trials indicate positive results.

GB Investment Magazine · November 2018

“Mimica is in partnership with Arla, the seventh biggest global dairy business, to bring the product to market. Arla have put time and money into consumer testing and are planning commercial-scale pilots later in the year.”

How much is being raised? Mimica Lab is currently running a soft-close round on SyndicateRoom. This means that there is no set minimum target amount that the round has to hit in order to close, and any funds invested in the round will transact up to the board’s cap on the round of £815,000.

What is the minimum investment? The minimum amount that can be invested into any SyndicateRoom round is £1,000.

BOLD NEW BUSINESSES ARE RIGHT HERE ON OUR DOORSTEP Jo Oliver, Manager of the Octopus Titan VCT, says the UK has a wealth of opportunities in billion-dollar tech If you want to learn a new language, how can you start? Well, you might spend a few hours in a classroom after work. And then more hours hunched over textbooks at the weekend. Or you could do something more fun. Something that fits into your daily routine, rather than disrupting it. That’s the idea behind Memrise, a UK start-up that combines technology and cognitive science in an app that fits round its customers’ lives. Memrise is a great example of a business entering a huge market with a radical new approach. The e-learning market is worth around $165 billion a year globally. And it’s growing at a rapid rate, around 5% a year. So Memrise has a lot of potential to scale up. Memrise is just one example of the exciting investment opportunities UK investors have on their doorstep. The entrepreneurial environment has thrived over the last decade.

Consider, for example, that in 2010 just one UK company founded since 2000 had reached the milestone valuation of $1 billion. By 2018, this had risen to 26. Across the Channel, continental Europe saw the number of start-ups reaching the $1 billion mark rise from one to 69 over the same period. This shows the astonishing growth of European early-stage companies. But it also shows something else. The lion’s share of this growth story is happening right here on our shores. Indeed, in 2017 tech businesses in London saw three times the level of venture capital funding than Paris, the next best market. The UK has more billion-dollar-plus tech companies than any other European country, with a further 102 tech start-ups fast approaching that milestone. So how can UK investors get involved?

A tax-efficient way for investors to tap into this growth story One way investors can access early stage companies

GB Investment Magazine · November 2018

is through a VCT. VCTs invest in smaller companies that meet certain criteria set by government, and which are not listed on the main London Stock Exchange. These are companies that have the potential to grow to many times their current size. A key feature of VCTs is that investors can claim income tax relief equivalent to 30% of the amount they invest (up to the first £200,000 invested). Dividends and capital gains are also free from tax. Note that investors must hold their VCT shares for at least five years, or else pay back any income tax relief claimed. The reason the government offers these reliefs is to create an incentive for investors to take on the risks of backing smaller, less established companies.

What risks should investors be aware of? VCTs are high risk investments and won’t be right for every investor. Not every company will succeed, so the value of a VCT investment, and any income from it, can fall as well as rise. Capital is at risk and investors may not get back the full amount they invest. Regarding the tax reliefs VCTs offer, investors should note that tax treatment depends on individual circumstances and may change in the future. Tax reliefs also depend on the VCT maintaining its VCTqualifying status. Investors should also be aware that a VCT’s share price can be volatile, and they may be harder to sell than shares listed on the main market of the London Stock Exchange.

What types of companies do VCTs invest in? We’ve already touched on Memrise, the language learning app that’s breaking into the e-learning market. Memrise is one of around 67 companies in the portfolio of the UK’s largest VCT, Octopus Titan VCT. Other examples from the portfolio includes Sofar Sounds, an organiser of one-off, intimate live music experiences, WaveOptics, which makes see-through displays for augmented reality wearables, and household names like Secret Escapes, the membersonly travel website.

GB Investment Magazine · November 2018

As you can see, these are companies that operate across a diverse range of sectors. They’re also companies that are at various stages of their growth journey, from newer start-ups to more established businesses. But while these businesses are very diverse, they all share three important ingredients for success.

Three ingredients that make a great early stage company Those three ingredients are: • Talented, entrepreneurial founders. • An idea that can transform their industry. • A huge market opportunity. The founders of Memrise, for example, have a strong academic background in cognitive science. One of them is also a memory grandmaster, which means he can memorise a 1,000 digit number in just one hour. Their idea is already making its mark on the eLearning industry, winning iPad App of the Year 2016 in several countries, and Best App of 2017 at the Google Play awards. And the market opportunity is large and growing. That’s thanks to two very strong global trends: the growth in language learning, driven by population growth and greater geographical mobility, and the growth of online learning worldwide.

What makes a good VCT Of course, not every company will succeed, even if it does have those three ingredients. Indeed, one of the advantages of investing through a VCT is investors can benefit from the expertise of its fund managers, as well as their access to investment opportunities. Another advantage is investors get access to an established portfolio straight away. So they spread their investment across a broad range of companies. But to be sure your clients maximise these advantages, you’ll want to do some digging. When considering a VCT, ask about the investment team. How big is it? How experienced are the people on the team? Crucially, do they have access to the best new investment deals?

GB Investment Magazine · November 2018

Ask as well about the support they give companies after they invest in them. Good VCTs are not passive investors. They work with the entrepreneurs they back to help them succeed. So ask VCT managers how they use their resources. Do they provide ongoing support throughout the companies growth, including through follow-on investments? Do they also provide practical support, like introducing founders to valuable new contacts?

GB Investment Magazine Âˇ November 2018

Taking the next step Octopus, the UKâ&#x20AC;&#x2122;s largest VCT manager, has a wealth of information to help explain VCTs, including a userfriendly guide to VCTs that explains the asset class in more depth. Note that VCTs have finite fundraising capacity, and the most popular ones can fill up quickly. You should start your planning sooner rather than later to make sure you can invest in your preferred VCT.

EISA Event for Financial Planners and Regulated Advisers: Effective Financial Planning Using EIS and BR Investments In advance of EISA’s upcoming event specially designed for financial planners, Mark Brownridge, Director General of EISA, asks if you are fully equipped to handle questions around the impact of a period of rapid growth in the alternative investment industry? In the Spring Statement 2018, Chancellor Philip Hammond noted noted that the UK “are the UK’ is the champion of small businesses and the entrepreneur’. The Government is slowly coming to realise what we in the EIS/SEIS/BR industry have known for years; that SMEs and entrepreneurs are the lifeblood of the UK economy. Statistics from the British Business Bank Small Business Finance Monitor 2018 shows that there were 5.7 million private sector business in the UK at the beginning of 2017 and the SME sector overall (firms with 0-249 employees) represents 99.9% of all private sector firms in the UK, 60% of employment and, at £1.9 trillion, 51% of gross turnover. So entrepreneurial activity in the UK is at a high tidal mark with the UK increasingly seen as the ‘go to’ place for entrepreneurs across the world. With EIS/ SEIS, R&D tax credits, the low cost of setting up a

company and an established and growing angel and private investor base (compared to the US where you can only invest in a small business if you are an ‘accredited’ investor) the UK is a start up mecca for entrepreneurs and there is increasing evidence that SMEs are seeking funding options outside of the traditional bank financing routes.

So what does this mean for EIS/SEIS? The introduction of the new knowledge and intensive investment limits has come to fruition because there is clear evidence that young and innovative enterprises contribute substantially to economic growth and job creation and that venture capital funding fills a niche that allows necessary capital to reach some of the least developed and most uncertain ideas. It’s also clear the Government is keen to establish the UK as the ‘Innovation Nation’

GB Investment Magazine · November 2018

with a focus on technology, artificial intellingence and life sciences as well as other cutting edge, knowledge intensive industries. Measures are rapidly being put into place to ensure the infrastructure is built to make this vision a reality. We already have a very low corporation tax environment, four out of the top eight best universities are in the UK, and last year over £8 billion of equity was invested in UK small businesses, £5.9 billion from overseas investors. The UK is open for business and EIS and SEIS play an important role early stage role in the funding continuum of those businesses. There is currently an obsession with scale up but you can’t scale up if you don’t first start up!

in this area? With the changes fuelling investor awareness and appetite for more knowledge in these two tax efficient areas of investing and as both types of investment provide attractive inheritance tax reliefs, we felt it was time to bring the industry together for an event, organised by the EIS Association, the independent trade body for the EIS and SEIS industry, to cover all the important questions being asked by financial planners at this time. The event will therefore provide individuals in the advisory community with a fully CPD qualifying session of informed opinion from industry experts on the relevant issues that we believe you face when advising in this area.

So the portents for deal flow are highly exciting. Not only are there are more small businesses (the majority potentially EIS/SEIS qualifying) than ever before but also more small businesses with the appetite and desire to scale up and grow quickly.

To book your place follow the link here:

So the EIS/SEIS/BR industry has experienced a period of rapid growth and change. Are you up to date with these changes? Do you feel equipped to deal competently and confidently with client queries

GB Investment Magazine · November 2018

https://www.eisa.org.uk/effective-financialplanning-using-eis-and-br-investments-friday-7thdecember-2018 Mark Brownridge Director General – EIS Association mark.brownridge@eisa.org.uk

Will the Budget be good or bad for VCT and EIS investors? Modwenna Rees-Mogg looks forward to a post-budget lively debate at the VCT and EIS Investor Forum With the Budget days away, the calls I am taking at the moment are asking one of two things. Will the Chancellor do anything that impacts on this vital part of the investment market? and Am seeing any signs of the economy weakening, given the challenging state of the equity and currency markets? Just to recap, almost £3bn was raised via the SEIS, EIS and VCT schemes, to back our most exciting British companies in 2017/18, with low thousands of companies receiving funding to move to the next stage. That investment will predicate a lot of growth in the next 2-3 years. It’s investment these companies need. Since the outcome of the Patient Capital Review last year, which led to the implementation of rule changes to direct investment into higher risk opportunities, investors whether private individuals or fund managers have risen to the challenge and its with great pleasure that I read www.AngelNews. co.uk each day to learn of yet more deals that have been done to back great technology companies. The consensus amongst the industry leaders is that the Government has done enough to stop any

“naughty boys” from using the schemes for “low risk” investments that could raise funding without the need for tax breaks. But the view is also that our technology research base and entrepreneurial dynamism means an ever-growing supply of deserving technology companies seeking funding. If the Chancellor hoped that making the scheme more focused would reduce levels of investment, I fear he will be disappointed. My guess is that neither EIS or VCTs will get a mention, excepting only a bit about the Government’s plans for its Knowledge Intensive EIS Fund concept. When it comes to the Government showing its support to British enterprise generally, expect some news on additional funding for the British Business Bank, especially around BBI and its co-investment schemes to encourage angel investment in the regions. Now the Business Bank is delivering a positive ROI for tax payers those who might prefer the State to leave such activity to the private sector should be quietened. So what news about signs from the investment market about the state of the economy? You can tell a lot about the direction of travel from the early stage investment market (particularly the angel market) as this type of investing is reduced when investors are nervous. We are seeing early signs of stress, but in

GB Investment Magazine · November 2018

the context of the final lap on the Brexit negotiations this is not surprising and not necessarily the start of a trend. If the Chancellor attacks pension tax breaks, this will provide a useful fillip to the VCT and EIS markets as investors and their advisers seek out ways to invest the final 5-10% of their portfolio. It’s no surprise that our stellar VCT and EIS fund managers have never been busier as they get ready for investor commitments to start arriving in the post. VCTs and EIS funds offer slightly different tax breaks over and above the upfront income tax breaks. The other major difference is that there is a secondary market opportunity for VCTs, but far less so for EIS. So, any investor considering just one or the other should look closely at the options and look to create a blend that works for their personal tax circumstances. Of course, they should also look underneath the bonnet to see how what companies their money will be invested in. It’s the quality of the portfolio that will make the difference to returns, not the tax breaks. Given the stage of investment portfolio diversification matters. More research is needed, but few people

GB Investment Magazine · November 2018

would disagree that given the fact that younger companies are more risky than older larger ones, gaining exposure to more rather than less investments should help to ensure overall returns are de-risked. People often say to me that they think 10 is enough. I disagree – think 20-30 instead. The easiest way to build up these volumes is to invest all or in part via a selection of funds. At the VCT & EIS Investor Forum on 30th November, we will be debating the best fund structures and investment strategies for investors. It will be lively with valuable in-sights and conclusions that will not be heard elsewhere. The Invested Experience EXPO on the same day. will be an opportunity for delegates to meet and trial the technologies and services for which Britain is renowned. I have no doubt, it will help them make better investment decisions! To get your ticket, go to www.thevctandeisinvestorforum.com

THE AUTUMN REVIEW: THE GOOD, THE BAD AND THE UGLY Aside from the occasional speed bump, 2018 has proved relatively benign for investors so far, says Darius McDermott, Managing Director of Chelsea Financial Services While emerging markets have come under pressure, developed stock markets have largely shrugged off macro headwinds and delivered growth for investors. These headwinds include the escalation of trade tensions between the US and China (largely driven by the actions of US president Donald Trump), the unwinding of extraordinary monetary policy measures across the world, and the UK’s impending departure from the European Union (EU).

the performance of the so-called FAANG stocks (Facebook, Amazon, Apple, Netflix and Google). Although their influence on our day-to-day lives is undeniable and their contribution to stock market gains has been significant this year, I think it is important to look at the market as a whole. For example, the equal-weighted S&P 500, which strips out the dominance of the FAANGs, is up by 11.1% this year.

As the nights draw in and we dust off our autumn jackets, it feels like a good opportunity to review the asset classes that have performed well so far this year – and those that have the potential to deliver returns looking ahead. I will also throw in some areas to avoid for good measure!

David Coombs, Manager of the Rathbone Strategic Growth fund, recently pointed out that the US market offers a few pockets of value. For example, US industrials look cheaper than their European peers.

US leads the way The US is a good place to start, given the S&P 500 has recorded the longest bull run in history. This accolade was achieved on 23 August, marking a period of 3,453 days in which the market avoided a fall of 20% or more. Investors with exposure to the world’s largest economy are likely to have experienced a smooth ride, with the S&P 500 up 15% (in sterling terms) year-to-date. Can this run of performance continue? Some suggest that the US market’s fate will depend on

The fund manager also noted that US companies across a number of sectors appear to be in better health than their UK counterparts. For example, USbased home improvement supplies retailer Home Depot saw revenues climb by 8.4% to $30.5 billion during the second quarter of 2018. Meanwhile, its share price has performed very well over the past two years – up 59% at a current price of $205.31 per share. By comparison, DIY retailer Homebase is struggling. It recently took the decision to shut 42 stores under new owner Hilco Capital, which bought the business from Wesfarmers for a nominal £1 in June. This could indicate that the US consumer is in better health

GB Investment Magazine · November 2018

or that Home Depot’s staff provide better service. Alternatively, it may be that the business is responding successfully to changing consumer trends. When it comes to the US, I would suggest backing a fund manager who is able to invest across the market and has established a solid track record of identifying interesting companies away from the herd. Here, Elite Rated Hermes US SMID Equity represents a good option. Fund Manager Mark Sherlock has been buying high quality, cash-generative businesses which have been overlooked by other investors.

UK offers value Across the ocean, the UK market has been far from exciting. Year-to-date the FTSE 100 is down 0.1%, which reflects the uncertainty surrounding the UK’s exit from the EU. You can then throw in prime minister Theresa May’s seemingly precarious position and the prospect of a far left government under Jeremy Corbyn – and it’s easy to see why a continuous stream of negative headlines has caused investors to take fright. Figures from the Investment Association show that £10.2 billion has been withdrawn from UK equity funds since the Brexit vote. However, beyond the negative headlines and political noise, I believe the UK offers some attractive investment opportunities right now. From Fever-Tree to Boohoo, the UK is home to a raft of success stories – and I don’t see that stopping any time soon. Whatever happens with Brexit, the UK entrepreneurial spirit will live on. For investors seeking exposure to smaller companies, I would highlight the Elite Rated Liontrust UK Smaller Companies fund. Managers Anthony Cross and Julian Fosh have a clear investment process, which focuses on quality businesses that enjoy a competitive advantage. This may be down to intellectual property, a strong distribution network or recurring revenues.

Access to private companies Outside of the public market, there are exciting growth and income stories that investors might consider tapping into, particularly as data suggests that UK companies are staying private for longer. VCTs are a good way to access private companies, particularly for clients with high tax bills, an appetite for taking on risk and a long-term outlook. VCTs offer 30% tax relief, while any income or dividends that are paid from VCTs are free of income tax. In addition, any gains made within the VCT are free of capital gains tax.

GB Investment Magazine · November 2018

VCTs are a good way to access private companies, particularly for clients with high tax bills, an appetite for taking on risk and a long-term outlook

I believe the UK offers some attractive investment opportunities right now. From Fever-Tree to Boohoo, the UK is home to a raft of success stories – and I don’t see that stopping any time soon

GB Investment Magazine · November 2018

Here, I would highlight Pembroke VCT which backs entrepreneurs who are seeking to build brands of the future. For example, the portfolio includes model Alexa Chung’s womenswear range and burger restaurant Five Guys.

Bearish on bonds In light of August’s jump in inflation and the prospect of higher interest rates in the UK, I would suggest treading with caution when it comes to bonds. Inflation and higher interest rates erode the fixed income that a bond provides, which creates the potential for prices to fall and yields to rise (as the two move inverse to each other). Year-to-date, the performance of UK bond funds has been disappointing. The Investment Association (IA) Sterling Corporate Bond sector is down 2% on average, followed by the IA Sterling Strategic Bond sector which is down 1.4%. Over the same period, the IA Sterling High Yield sector is up only 1%. Historically, investors have sought to diversify risk by holding absolute return funds as an alternative to fixed income. However, the IA Targeted Absolute Return sector has also fared badly since the start of the year – down 0.65% on average. For example, one of the best known funds in the sector - Standard Life Investments Global Absolute Return Strategies (GARS) – is down 4.5% since the start of the year. Outside of bonds, investors may consider supplementing income from alternative asset classes. For example, investment companies can offer attractive yields and exposure to a range of ‘real assets’, such as infrastructure, specialist property and renewable energy. However, it’s important to ensure that the risks associated with these areas are appropriate for your underlying client and they are comfortable having exposure to these assets. As we enter the final quarter of the year, there are a number of factors which have the potential to rattle markets – not least Trump who is able to do so at the drop of a tweet. From Brexit through to the trade war, I would suggest fastening your seatbelt in preparation for turbulence. However, in spite of these potential headwinds, investment opportunities remain for savvy investors who are able to keep their cool.

GB Investment Magazine · November 2018

M AGAZINE

GBI OPEN OFFERS The power to invest through GrowthInvest

EIS Open

July 2018

28 June 2019

Amount to be Raised: £20m Minimum Investment: £50,000

Calculus Capital EIS Fund Pioneers of tax efficient investing, Calculus Capital created the UK’s first approved EIS Fund in 1999. Our 19 year track record of investing in growing UK companies assures investors of our ability to make sensible investments capable of delivering excellent returns at every stage of the economic cycle. Calculus has won multiple awards, including the EIS Association’s ‘Fund Manager of the Year’ in February 2017, the fifth time the firm has been awarded the accolade and more recently was awarded Best EIS Fund Manager at the Tax Efficiency Awards in December 2017. Calculus are recognised as having an incredibly robust investment process and an active portfolio management style - which has led to an impressive track record of successful exits. The Calculus Capital EIS Fund focuses on established companies with growth potential, across a diverse range of sectors. An investor can expect a portfolio of 6-10 companies with the following characteristics: • The ability to achieve our target IRR of 20% • Experienced management teams • Successful sales of proven products or services • Profits or a clear path to profitability • Clear route to exit

T. 020 7493 4940 E. info@calculuscapital.com www.calculuscapital.com

VCT Open

September 2018

Close 30 August 2019

(2019/20 tax year)

Amount to be Raised: £10m Minimum Investment: £5,000

Calculus’ investment strategy is exit led, with a key focus on delivering strong returns to investors. The 18 month investment programme commences after relevant closing date. Calculus value their reputation for client service as much as their investment record, and are focused on building long standing relationships with both clients and advisors. Please get in touch to find out more on 020 7493 4940 or info@calculuscapital.com

Calculus Capital VCT Pioneers of tax efficient investing, Calculus Capital have a strong track record for investing in established, unquoted SMEs. Our experienced investment team and thorough investment process have produced impressive dividend performance and exit returns for investors. By co-investing in selected established companies through both VCT and EIS, we are able to choose larger companies and bigger deals – reducing the risk profile of the investment. The Calculus VCT has the following characteristics: • Targets an annual dividend of 4.5% of NAV • Income tax relief of 30%, tax-free capital gains and dividends • Diversified portfolio, targeting 30 qualifying companies • Share certificates issued 10 days after allotment • Allotments available in both 2018/19 and 2019/20 tax years • Monthly standing order option available • Target 5% discount in respect to share buyback after 2020

T. 020 7493 4940 E. info@calculuscapital.com www.calculuscapital.com

The top up offer will be used to both invest in new companies with growth potential and provide further funding to a number of portfolio companies. Calculus value their reputation for personal service as much as their investment record, and are focused on providing an excellent client experience. Please get in touch to find out more on 020 7493 4940 or info@calculuscapital.com

GB Investment Magazine · November 2018

Open Offers

EIS Open

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

T. 01865 860 760 E. info@oxcp.com www.oxcp.com

BPR / IHT Open

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

Oxford Capital Growth EIS We will build a portfolio of shares in 12-15 companies for investors over a period of roughly 12-18 months. We invest in early stage technology focused businesses in the UK. We aim to access the best deals, invest early and keep backing the winners. Our current portfolio includes companies in sectors such as fintech, online marketplaces, digital healthcare, AI and machine learning. Recent investee companies include Push Doctor (online health), Moneybox (digital savings), Sn-ap (on demand travel app) and Wrisk (insurtech). Our experienced team works closely with investee companies, typically sitting on the board, helping to accelerate commercial development with the aim of achieving a profitable exit, usually through either a trade sale or a stock market listing. Each portfolio company should be eligible for EIS reliefs, including 30% income tax relief and tax-free gains.

Oxford Capital Estate Planning Service The Oxford Capital Estate Planning Service (OCEPS) can help investors mitigate Inheritance Tax by investing in companies that should qualify for Business Property Relief, subject to the requisite holding period. OCEPS offers investors ‘flexibility and control’ over their investment. Options include Capital Growth and Income. Target returns range from 3% to 5% p.a., and capital can be accessed within 1-6 months through the sale of shares. If an investor’s circumstances change, they can elect to switch to an alternative, more appropriate, investment option. Investors in the Estate Planning Service will acquire shares in unquoted holding companies. These companies will make equity investments in, and loans to, companies which in turn will own and operate revenue-generating assets. Currently the investment strategy is focused on small-scale power generating equipment, property construction and renewable energy assets. Over time, other assets will be added to the portfolio.

T. 01865 860 760 E. info@oxcp.com www.oxcp.com

EIS

(but occasional investments are not EIS)

Open

Evergreen

Amount to be Raised: N/A Minimum Investment: £25,000

Oxford Capital Co-Investor Circle Our Co-Investor Circle lets you build your own Venture Capital portfolio, by investing directly alongside Oxford Capital at your own discretion. The Co-Investor Circle is our network of sophisticated investors, who share our passion for supporting and investing in interesting businesses, with the potential for rapid value growth. Through the Co-Investor Circle, individuals and family offices can access investments in privately owned companies that would usually only be open to institutional investors, to build their own venture capital portfolio at their own discretion.

T. 01865 860 760 E. info@oxcp.com www.oxcp.com

When making their investments, members leverage over 60 years of venture capital experience, gaining comfort from Oxford Capital’s due diligence and selection process, and from the same institutional investment terms. After investment, members benefit from our strategic planning and operational value-add to help manage their investment risk and enhance value. Typically we seek to represent investor interests through board seat representation. Co-Investor Circle members have invested over £60m in more than 30 companies. Recent investments have been in sectors such as fintech, online marketplaces, digital healthcare, AI and machine learning.

GB Investment Magazine · November 2018

SEIS Open

January 2016

Evergreen

Target Raise: £3m per annum Minimum Investment: £10,000

The Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS represents an opportunity for private investors to participate in a selected portfolio of early stage life sciences companies, taking advantage of the tax benefits available under the Seed Enterprise Investment Scheme. Providing seed investment to emerging companies operating in the life sciences sector, the Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that aim to satisfy the needs of large and growing markets. The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology. The Deepbridge Life Sciences SEIS is a manager fee-free SEIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of SEIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

T. 01244 746000 E. Enquiries @deepbridgecapital.com www.deepbridgecapital.com

EIS Open

March 2017

Evergreen

The availability of SEIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in SEIS can be difficult to realise. Past performance is not a reliable indicator of future performance. This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”). Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

Deepbridge Life Sciences EIS

Maximum Raise: Uncapped

The Deepbridge Life Sciences EIS represents an opportunity for private investors to participate in a selected portfolio of healthcare innovation, whilst taking advantage of the tax benefits available under the Enterprise Investment Scheme.

Minimum investment: £10,000

The Deepbridge Life Sciences EIS focuses principally, but not exclusively, on three sectors: • Biopharmaceuticals • Biotechnology • Medical Technology. The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology. The Deepbridge Life Sciences EIS is a manager fee-free EIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of EIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

T. 01244 746000 E. Enquiries @deepbridgecapital.com www.deepbridgecapital.com

The availability of EIS tax reliefs depends on individual circumstances, may be subject to change in future and depend on underlying companies invested in maintaining their qualifying status. Investment in unquoted companies carries high risks and investors could lose the total value of their investment. Investments in EIS can be difficult to realise. Past performance is not a reliable indicator of future performance. This financial promotion, directed at investment professionals, has been approved by Enterprise Investment Partners LLP (“EIP”). Deepbridge Advisers Limited (FRN: 609786) is an Appointed Representative of EIP, which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

GB Investment Magazine · November 2018

Open Offers

SEIS Open

Nov 2017

Evergreen

Target Raise: £3m per annum Minimum investment: £10,000

Deepbridge Innovation SEIS The Deepbridge Innovation SEIS represents an opportunity for private investors to participate in a selected portfolio of innovative seed stage innovation companies, taking advantage of the tax benefits available under the Seed Enterprise Investment Scheme. Providing seed investment to emerging technology-focused companies, the Deepbridge Innovation SEIS seeks to fund selected investee companies that possess an exciting new innovative approach to meet the existing and emerging requirements and demands of both corporate and consumer markets. The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology. The Deepbridge Innovation SEIS is a manager fee-free SEIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of SEIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

T. 01244 746000 E. Enquiries @deepbridgecapital.com www.deepbridgecapital.com

EIS Open

January 2013

Evergreen

Deepbridge - Technology Growth EIS

Amount to be Raised: Uncapped

The Deepbridge Technology Growth EIS represents an opportunity for private investors to participate in a selected portfolio of innovative growth companies, taking advantage of the tax benefits available under the Enterprise Investment

Minimum Investment: £10,000

Scheme. The Deepbridge EIS focusses principally on three sectors: • Energy and resource innovation; • Medical technologies; • Business enterprise and other high growth IT-based technologies. The Deepbridge Investment Team has a proven track record of working with emerging companies to create value for shareholders through a hands-on investment methodology. The Deepbridge Technology Growth EIS is a manager fee-free EIS opportunity at the point of investment for subscriptions received by a financial adviser. Upfront and ongoing manager fees are paid by the Investee Companies, potentially allowing investors to enjoy up to 100% of EIS tax benefits. Please see costs and fees section in the Information Memorandum for full details.

T. 01244 746000 E. Enquiries @deepbridgecapital.com www.deepbridgecapital.com

GB Investment Magazine · November 2018

EIS

SEIS

Open

Now

N/A

Amount to be Raised: £5m Minimum Investment: £15,000

Oxford Technology Combined SEIS and EIS Fund - “The Start-up Fund” Oxford Technology invests in high risk, high reward technology start-ups, in general within an hour’s drive of Oxford, and has been doing this since 1983. The latest fund, OT(S)EIS, made its first investment in 2012. By 30 September 2018, 103 investments had been made in 33 companies. The statistics to this date are as follows: Gross amount invested by OT(S)EIS:

£4.86m

Cash back to investors via tax refunds:

£1.94m

Net cost of these investments after tax relief:

£2.92m

Fair value: £10.05m Tax Free gain (on paper only so far): T. 01865 784466 E. info@oxfordtechnology.com www.oxfordtechnology.com

EIS Open

01.09.2017

Evergreen

Amount to be Raised: £40m Minimum Investment: £15,000

Oxford Technology EIS Fund - “The Development Fund” Oxford Technology has been investing in technology start-ups since 1983. The Oxford Technology EIS Fund will aim to provide each investor a diversified portfolio of 5 - 10 EIS investments in high risk, but high potential early stage technology companies near Oxford.

T. 020 7222 3475 E. info@oxfordtechnology.com www.oxfordtechnology.com

£7.13m

OT(S)EIS remains open for investment at any time. We average about one or two new investmens per quarter, and investors in the fund receive their pro-rata share of these. The lastest quarterly report, with a page of information on each investment is downloadable from www. oxfordtechnology.com.

GB Investment Magazine · November 2018

Open Offers

EIS Open

April 2017

SEIS Close

Evergreen

Amount to be Raised:

Up to £25,000,000

Minimum Investment: £10,000

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

EIS Open

Evergreen

SEIS Close

Evergreen

Amount to be Raised: N/A Minimum Investment: £5,000

GrowthInvest Portfolio Service A discretionary investment management service which seeks to leverage the experience and expertise of the GrowthInvest investment team to select a diversified portfolio of some of the most promising companies that have passed through GrowthInvest due diligence process. GrowthInvest is an independent platform, which provides access to tax efficient investments to a growing network of UK financial advisers, wealth managers and investors. The platform aims to bring the advantages of early stage investing to a wider audience of investors and advisers, who are able to benefit from the potentially higher returns these companies can offer and tax efficiency via government approved schemes, such as SEIS and EIS. From our experience working with advisers on the Platform, the Fund has been designed to consist of three sub-funds, each with a separate investment policy. The first will target Investee Companies which qualify for SEIS Reliefs only. The second will target Investee Companies which qualify for EIS Reliefs only and the third will be a mixed investment policy which will target Investee Companies which qualify for SEIS Reliefs and / or EIS Reliefs. You will be able to choose how much of your subscription to allocate to each of these three sub-funds. The Fund is aiming to exit investments after three to seven years.

GrowthInvest - The Tax Efficient Platform for Advisers GrowthInvest is a unique, independent platform which provides access to tax efficient investments to a growing network of UK financial advisers, wealth managers and investors. Originally founded by financial advisers in 2012 as the Seed EIS Platform, we rebranded as GrowthInvest in October 2016 to better reflect the wider range of products and services available: We permit investment into a range of single company offers, as well as Managed EIS Portfolio Services and funds, giving clients a number of different investment options. • We offer a simplified asset transfer process which allows advisers to place all of their clients’ tax efficient investments onto the platform. • We provide intuitive online reporting tools, allowing advisers to monitor, analyse, and provide consolidated performance updates and quarterly reports to their clients. • All investable companies go through one of 3 defined due diligence tiers, giving added peaceof-mind to the adviser.

T. 020 7071 3945 E. enquiries@growthinvest.com www.growthinvest.com

• A single, secure online environment for all clients to review and build their tax efficient investment portfolios. We’ve placed the adviser at the heart of everything we do, making it straightforward for advisers to improve the service they offer to their clients in the tax efficient investment arena. Please visit us at growthinvest.com for more details about our current open investment opportunities.

GB Investment Magazine · November 2018

VCT Open

09/05/2018

05/04/2019

Amount to be Raised: £10m with £10m overallotment facility Minimum Investment: £3,000

Seneca Growth Capital VCT Seneca is regional award-winning specialist SME investment and advisory business. Formed in 2010, and headquartered in the North West of England, the management team have extensive experience across a range of sectors, including private equity, corporate finance, wealth management, accountancy and stockbroking. As an experienced manager in small cap and AIM company investments, Seneca has a track record of successful growth capital investments, mainly through its EIS Portfolio Service. Since 2012, through the Seneca Growth Capital EIS Fund and the Seneca EIS Portfolio Service, Seneca has raised more than £50 million of growth capital and invested in 39 SMEs through 72 funding rounds. 18 of these companies are AIM quoted. During the 5 years to 31 March 2018, the Seneca Growth Capital EIS Fund and the Seneca EIS Portfolio Service have delivered a combined average (unaudited) NAV growth rate of approximately 8.9% p.a. before the impact of Seneca’s stated fees (c.7.3% after fees. Past performance is however not a guide to future performance.

T. 020 7071 3920 E. investor-relations@lighttowerpartners.co.uk http://lighttowerpartners.co.uk/products/senecavct

EIS Open

Now

SEIS Close

Multiple

Amount to be Raised: Evergreen

Minimum Investment: £10,000

T. +44 20 3858 0847 E. info@worthcapital.uk worthcapital.uk

For the VCT, Seneca will target investments with strong leadership teams, robust business models, attractive growth prospects and a capability to deliver a timely and profitable investment exit in preference to targeting specific sectors. As established growth capital providers, Seneca will continue to seek investment risk mitigation through the targeting of companies with an established proof of concept and demonstrable market demand. The first allotment of over £3m into B shares was completed in August 2018.

Start-Up Series Fund The Start-Up Series Fund is an evergreen EIS & SEIS service. Managed as an Alternative Investment Fund by Amersham Investment Management Limited, authorised and regulated by the FCA. The service is designed for eligible subscribers to be invested in selected winners of the Start-Up Series, a monthly competition organised by Worth Capital Limited and promoted by startsups.co.uk. The Fund invests in qualifying B2C or B2B companies with innovative products or services that can create new consumer behaviours in growth markets, with teams that demonstrate compelling marketing & communication skills and with a clear credible route to exit. -

EIS & SEIS investments - choose EIS, SEIS or both

Businesses selected by real world, commercial entrepreneurs with deep brand, marketing, retail & innovation expertise – worth capital

A unique approach to UK EIS & SEIS fund investing – a monthly competition, around one hundred businesses considered each month

Ongoing oversight from experienced investor directors - skilled in helping accelerate growth & reducing risk

Investments in ‘mini-portfolios’ of typically 3 or 4 businesses

Investments qualifying for attractive EIS & SEIS tax reliefs

Any investment in the Start-Up Series Fund places your capital at risk of total loss and will not be readily realisable. Tax treatment depends on individual circumstances and is subject to change. We recommend you take professional advice before investing.

GB Investment Magazine · November 2018

Open Offers

EIS

SEIS

Open

Now

31.01.2019

Amount to be Raised: £3.5m Minimum Investment: £20,000

Iron Box Capital: Alive in the Morning Ltd. Alive in the Morning Ltd. will develop, produce, finance and market a slate of unique, commercial films in the horror and thriller/horror genres. Horror is one of the most popular and pro table genres in a worldwide Filmed entertainment market that will be worth a forecasted US$104.62 billion a year by 2019. It is consistently commercially successful as people love to watch movies to be scared, whether at the cinema or at home. Horror is also one of the most international genres, as fear is universal, transcending cultural and geographical boundaries. Horror Films additionally can be made on low budgets and do not need star names to attract audiences, offering the potential for a significant return-on-investment.

THE

MORNInG T. 07528616752 E. raimund@ironboxcapital.com www.ironboxcapital.com

SEIS Open

Now

Evergreen – multiple close dates

Amount to be Raised: £750K Minimum Investment: £10,000

Advance Assurance has been given.

Iron Box Film & TV seis channel in the Amersham seis fund The British Film Industry is growing, and is forecast to grow for years to come. This is fuelled by the global demand for films, through multi on-line channels, including Netflix and Amazon Prime. Iron Box’s team of experts has specialist knowledge across development, finance, production and marketing of film & television projects. As a company they are well positioned to capitalise on this growth market. The aim is to focus on the most profitable genres, where there is a clear target audience, and in using proven teams of people that have a track record of making profitable Film & TV shows.

THE

MORNInG T. 020 3011 5096 E. info@symvancapital.com www.symvancapital.com

The Iron Box Film & TV SEIS Channel has been designed for UK tax payers who prefer to invest in a managed portfolio of independent filmed entertainment projects, whether for traditional films or television. There are likely to be around 4 films in each portfolio. The fund will finance projects that are commercial, with strong audience appeal, and suit the international marketplace. The companies will be SEIS eligible.

GB Investment Magazine · November 2018

BPR Open

June 2005

Evergreen

Amount to be Raised: Unlimited

Minimum Investment: £25,000

Octopus AIM Inheritance Tax Service Since 2005, the Octopus AIM Inheritance Tax Service has offered a fast and flexible solution to inheritance tax planning, while providing the potential for significant capital growth through investment into a portfolio of 20-30 companies listed on the Alternative Investment Market (AIM). As we only select companies which meet the requirements for Business Property Relief, the shares should become exempt from inheritance tax after just two years, provided they are still held on death. Our highly experienced Smaller Companies team manages £1.5 billion on behalf of 11,500 investors across the service. Portfolio companies are chosen after detailed research, which involves spending time with a company’s management team, evaluating its competitors and assessing its financial strength. Holdings are monitored on a day-to-day basis, with the team making investment decisions. The Octopus AIM Inheritance Tax Service is also available within an ISA wrapper. The value of an investment, and any income from it, can fall as well as rise and you may not get back the full amount invested. Tax treatment depends on individual circumstances and may change in the future. Tax relief depends on portfolio companies maintaining their BPR-qualifying status.

T. 0800 316 2295 E. clientrelations@octopusinvestments.com

octopusinvestments.com

VCT Open

13.09.2018

12.09.2019

Amount to be Raised: £120 million

Minimum Investment: £3,000

The shares of smaller companies could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: September 2018. CAM07427-1809.

Octopus Titan VCT Octopus Titan VCT invests in tech-enabled businesses with high growth potential. It’s managed by Octopus Ventures, one of Europe’s most experienced venture capital investment teams with over 150 years combined experience. Octopus Titan VCT currently has a portfolio of around 65 early stage companies operating in a diverse range of sectors. Over the last decade we’ve backed some of the UK’s most successful entrepreneurs, including the founders of Zoopla Property Group, Secret Escapes and graze.com just to name a few. It targets a tax-free dividend of 5p per annum, plus special dividends if portfolio companies are sold at a significant profit. Investors can also claim 30% upfront income tax relief on the initial investment up to £200,000 and any capital growth is tax-free. The value of an investment, and any income from it, can fall as well as rise and you may not get back the full amount invested. Tax reliefs available depend on individual circumstances and may change in the future. Tax reliefs also depend on the VCT maintaining its VCT-qualifying status. VCT shares could fall or rise in value more than other shares listed on the main market of the London Stock Exchange. They may also be harder to sell.

T. 0800 316 2295 E. clientrelations@octopusinvestments.com

octopusinvestments.com

Please be aware that this advertisement is not a prospectus, and investors should only subscribe for shares based on information in the prospectus or Key Information Document (KID), which can be obtained from octopusinvestments.com/titan. Issued by Octopus Investments Limited, which is authorised and regulated by the Financial Conduct Authority. Registered office: 33 Holborn, London EC1N 2HT. Registered in England and Wales No. 03942880. We record telephone calls. Issued: September 2018. CAM07411-1809

GB Investment Magazine · November 2018

Open Offers

EIS Open

Evergreen

Amount to be Raised: Evergreen Minimum Investment: £15,000

Downing Ventures EIS The Downing Ventures EIS invests in high risk, high potential return investment opportunities with a principal focus on early-stage UK technology companies, whilst also providing access to attractive EIS tax reliefs. Downing Ventures will invest across a variety of sectors. The principal focus will be on the technology sector, but we also have considerable expertise in the leisure and energy infrastructure sectors and will consider higher risk/higher return opportunities within these areas. Each of these early-stage businesses will be high risk with a signiﬁcant chance of failure. However, the following factors should help to manage risk:

T. 020 7630 3319 E. sales@downing.co.uk www.downing.co.uk

IHT Open

Evergreen

BPR Close

Evergreen

Amount to be Raised: Evergreen Minimum Investment: £25,000

Diversiﬁcation: subscriptions estimated to be spread across approximately 12 - 15 growth businesses. Due diligence: a high number of opportunities will be investigated before each investment is made (up to 30 opportunities per investment). It is anticipated that Investors will be given the opportunity to exit their investments between four and eight years from subscription.

Downing Estate Planning Service The Downing Estate Planning Service aims to preserve investors’ capital by focusing on businesses in two distinct sectors, which we believe are lower risk than some other tax-efﬁcient sectors. It has been designed to offer full IHT relief on subscription after only two years by investing in a portfolio of businesses trading from freehold premises and/or energy businesses through investments that should qualify for Business Relief. The Service has been designed with the following key features: To take advantage of the chance to mitigate IHT liability through Business Relief

T. 020 7630 3319 E. sales@downing.co.uk www.downing.co.uk

To target capital growth of 4% per annum over the medium term (this is a target and is not guaranteed) Create an option to receive distributions (paid quarterly, six-monthly or annually at a level set by the investor) Offer monthly access to capital with no penalties on exit (subject to liquidity)

GB Investment Magazine · November 2018

EIS Open

2012

Evergreen

Amount to be Raised: Unlimited Minimum Investment: £20,000

Par Syndicate EIS Fund The Par Syndicate EIS Fund (“the Fund”) is a growth company focused EIS fund, targeting opportunities across a range of technology sub-sectors. Fund manager Par Equity has been investing in this area since 2009 and has developed a distinctive and successful investment model. As well as the Fund, Par Equity serves a large and active business angel group, the Par Syndicate. This expert investor group brings through its members sector knowledge as well as business expertise. The Fund therefore invests alongside, and on the same terms as, experienced industry insiders, so benefiting from a high quality flow of investment opportunities. Typically, companies invested in will be developing or exploiting an innovative technology and aiming at a global market.

T. 0131 523 1057 E. pauline.cassie@parequity.com www.parequity.com

EIS Open

Evergreen

Amount to be Raised: £15m+ Minimum Investment: £25,000

T. 020 3327 4861 E. EIS@hambroperks.com www.hambroperks.com

FUND Open

January 2018

n/a

Amount to be Raised:

Authorised up to £50m

Minimum Investment:

No minimum, subject to ongoing placing program

Returns are expected to take the form of outright sales of portfolio companies, with an average holding period of around seven years. The Fund’s benchmark return is 15% per annum after all fees and charges but before tax. Par Equity secured its first exit in 2012 and the Fund, having started investing in 2012, had its first exit in 2016.

Hambro Perks Co-Investment Fund Hambro Perks helps outstanding Founders build world-changing businesses. The provision of permanent, patient capital from our own balance sheet means we are completely aligned with the long term goals and interests of the entrepreneurs and investee companies that we support. We aim to take early risk in businesses, investing where we can add significant value through applying and sharing the expertise our team has built over many decades’ combined experience of founding, building, internationalising and exiting companies. We believe we are the destination of choice for the very best entrepreneurs, and they actively choose us to support them as they build fast growth tech-enabled businesses. Our main areas of focus are education technology, digital health, insurance technology, digital media and fintech. The Hambro Perks Co-Investment Fund enables individuals to co-invest alongside and on a fully aligned basis with Hambro Perks, thereby benefiting from this extraordinary access and proprietary dealflow while utilising EIS reliefs. Please get in touch for more information.

Sure Ventures PLC Listed investment fund Sure Ventures PLC is an entrepreneur-led Venture Capital Fund, listed on the London Stock Exchange (Ticker: SURE). It targets high growth tech companies where there is a proven concept and revenue generation, in the following sectors: - Augmented Reality (AR) & Virtual Reality (VR) - Internet of Things (IoT) - Emerging areas of Fintech (e.g. Blockchain/AI) With a highly experienced, sector-specialist investment team and a rigorous origination and selection process, it offers investors access to early stage technology companies. FUND OVERVIEW - Focuses on areas of significant growth potential over the next 5-10 years (AR/VR in particular is expected to be a $108 billion market by 2022) - Target portfolio of 30 diverse high growth companies - Target of 30% Gross IRR return across portfolio

T. 020 3931 7000 E. info@sureventuresplc.com www.sureventuresplc.com

- May pay dividends to maintain status as an investment trust and/or purchase its own shares - Over 10 years Venture Capital Investment Management experience - Backed by one of London’s leading specialist investment managers, Shard Capital, which manages and advises over £1 billion.

GB Investment Magazine · November 2018

Open Offers

EIS Open

Now

Evergreen

Amount to be Raised: £10m Minimum Investment: £25,000

Nexus Investments’ Scale-Up Fund The Nexus Investments’ Scale-Up Fund provides each investor a diversified portfolio of 8 – 10+ EIS investments in high risk, but high potential early-stage entrepreneur-led businesses. These businesses will be in one or more of the data, digital, education and health sectors, the areas of greatest potential for UK companies to make an impact in the coming 10-20 years. As well as the Fund, Nexus Investments serves a large and active business angel co-investor group. The Fund Manager, Nexus Investments, has been arranging, advising and co-investing in these areas since 2014, having developed a promising track record and a distinctive investment model. Returns are expected to take the form of outright sales of portfolio companies, with an average holding period of 5 - 8 years.

T. 0207 104 5595 E. info@nexusgroup.co.uk www.scaleupfund.co.uk

SEIS Open

May 2018

Close November 2018

Amount to be Raised: Open Minimum Investment: £10,000

The British Robotics Seed Fund Across the globe, the robotics industry is reaching a tipping point. For the first time, it is becoming cheaper to own, operate and maintain a robotics system, than it is to use manual labour. Robots are expected to perform 25% of industrial work by 2025. The British Robotics Seed Fund 2 (Sidecar), in conjunction with Sapphire Capital Partners LLP, is one of the first SEIS funds to specialise in UK robotics and AI start-ups. It aims to take advantage of the robotic revolution. Highlights: • Predominantly SEIS offer targeting 3x return, not including tax relief (returns not guaranteed); • A portfolio of around ten early stage robotics and artifical intelligence (AI) companies;

E. dominic@britbots.com www.britbots.com

• Fast growing sector, capitalising on Britain’s strength in robotics and AI; • Fund 2 (Sidecar) will invest predominantly in the 2018/19 tax year (with benefits eligible to be carried back to 2017/18); • Exit targeted in three to eight years (not guaranteed).

IHT Open

BPR

Evergreen

Minimum Investment: £30,000

Fundamental

T. 01923 713 890 E. enquiries@fundamentalasset.com www.fundamentalasset.com

Fundamental AIM IHT Portfolio Fundamental Asset Management is an independent, owner managed, investment management firm with an unrivalled knowledge of the AIM market. It has successfully provided AIM portfolio management with inheritance tax planning to private investors, trusts and institutions since 2004 delivering outstanding returns. Our investment ethos for AIM IHT Portfolios is conservative and value based. At its foundation is our in-depth, in-house research, which includes visiting and meeting senior management of hundreds of companies each year. As well as being available on its own broker platform the Fundamental AIM IHT Portfolio service can also be accessed through the AXA Elevate, Nucleus, Standard Life and Transact platforms.

GB Investment Magazine · November 2018

BPR Open

January 2018

Open ended

Amount to be Raised: Open ended

Minimum Investment: £40,000 (£20,000 for additional investment)

Guinness Best of AIM Service The Guinness Best of AIM Service is a discretionary managed service investing in AIM-quoted companies that qualify for Business Relief with the potential for capital growth. The rigorous quantitative portfolio selection approach has been adapted from the process used in Guinness Asset Management’s successful range of global equity funds. The detailed screening process is underpinned by the quality, value and conviction of each eligible AIMquoted stock. The service consists of a high-conviction concentrated portfolio of 20 companies across a range of sectors that have persistently generated a real return on invested capital. We target a low portfolio turnover to minimise dealing costs whilst maintaining a competitive fee structure.

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/iht

BPR Open

03.09.2018

Open ended

Amount to be Raised: Open ended

Minimum Investment: £25,000

Clients are able to access their capital, without exit penalties, enabling them to retain control of their assets.

Guinness Sustainable Infrastructure Service Subscriptions made to the The Guinness Sustainable Infrastructure Service will be invested into shares of one or more companies that qualify for Business Relief with no initial fee for advised clients. Investee companies will own and operate Sustainable Energy projects, such as roof mounted solar. These projects have strong visibility of revenues that are usually index-linked which helps to achieve capital preservation. Target Return to investors is in excess of 5% p.a. net of fees which is aided by fixed capital costs, low operating costs and predictable revenue streams with low annual variability.

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/iht

Inflation-linked long term (20 year plus) Power Purchase Agreements are able to benefit from government subsidies where available. Clients are able to benefit from access to their capital by redemption of shares on a regular or ad hoc basis.

GB Investment Magazine · November 2018

Open Offers

EIS Open

Close Evergreen with quarterly tranche closures

19.09.2016

Amount

Raised:

£50m

Minimum Investment: £20,000

Guinness EIS The Guinness EIS seeks to invest in at least five investee companies to create a portfolio of investments across a range of sectors. Characteristics favoured by the investment management team are asfollows: • Businesses with experienced management teams - Many entrepreneurs are serial entrepreneurs. They have successfully builtand sold companies and we look at their sector specific successes when they are looking for investment in new/ existing ventures • Businesses with good visibility on future growth - Maturing companies and businesses with clearly defined growth paths • Businesses with expanding working capital requirements - Successful businesses often require additional funds to expand their working capital to fund stock and debtor growth.

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/eis

EIS Open

03.09.2018 Amount

06.04.2019 be

Raised:

£10m

Minimum Investment: £20,000

T. 020 7222 3475 E. shane.gallwey@guinnessfunds.com www.guinnessfunds.com/eis

The Guinness EIS is an evergreen service with tranche closures at the end of each quarter. All subscriptions received in the current tranche will be invested in the 2018/19 tax year.

Guinness AIM EIS 2019 The Guinness AIM EIS seeks to invest in at least 10 investee companies to create a portfolio of investments across a range of sectors. It targets AIM quoted companies withe the flexibility to invest up to 20% in the NEX growth market and pre-IPO. The AIM EIS closes annually on 6th April for investment in the subsequent 12 months in newly issued AIM stocks that have EIS Advance Assurance in place and targets a return of £1.30 per £1.00 invested net of all fees. Subscriptions received by 6th April 2019 will be invested in the 2019/20 tax year which will allow for carry back of income tax relief to 2018/19. The Guinness AIM EIS is an HMRC approved fund so that investors receive one EIS 5 certificate for all holdings once the portfolio is invested. The AIM market is relatively liquid and provides a natural exit route with the intention to exit shares held soon after the EIS 3 year holding period. For this service, Guinness will defer all fees until exit, which maximises the amount on which investors can claim EIS tax reliefs.

GB Investment Magazine · November 2018

Open Offers

EIS Open

Amount

Fund Twenty8

Jan 2019

05.04.2019 be

Raised:

Minimum Investment: £10,000

Invest in the UK’s most promising startups. By following the investment decisions of some of the savviest private investors, Fund Twenty8® automatically builds you a diversified portfolio of no fewer than 28 EIS qualifying startups. The fund’s strategy is based on extensive research conducted by NESTA and Intelligent Partnership which asked the question: how many startup investments should I have? The magic number appears to be: at least 28. With this many startups in your portfolio, the study suggests a 95% chance of at least one giving you a 10X return or more. With this in mind, the fund is targeting a return of over 20% IRR including up to 30% EIS tax relief.

T. 01223 478 558 E. fundtwenty8@syndicateroom.com https://www.syndicateroom.com/ funds/fund-twenty8

SITR Open

Feb 2016

Evergreen

(with roughly quarterly closes)

Amount to be Raised: £5m Minimum Investment: £20,000

Now in its second year, Fund Twenty8® has already attracted 377 investors, who in total have committed £7.9m.

Resonance Bristol and West Midlands SITR Funds The Resonance Bristol SITR Fund (a sub-fund of the Resonance SITR Fund), is one of the first investment funds in the country to benefit from Social Investment Tax Relief (SITR). The Fund enables investors to build a portfolio of investments with the potential for attractive returns and tax relief benefits, whilst also helping to dismantle poverty in and around the City of Bristol through investing in the growth of high impact, mission-driven social enterprises. Based on the success of the Resonance Bristol SITR Fund, Resonance has now launched its second SITR Fund in the West Midlands (the Resonance West Midlands SITR Fund), which is now live and open for investment. SITR offers similar tax reliefs to those available through the Enterprise Investment Scheme (EIS), including a 30% income tax relief. The key innovation is that SITR is available on debt, as well as equity. This means that debt focused SITR Funds can offer the flexible, affordable loan capital that social enterprises require to grow their businesses and social impact, whilst also offering investors a more predictable income profile and exit route compared to equity based Funds.

T. 07718 425 306 E. grace.england@resonance.ltd.uk www.resonance.ltd.uk

Resonance has over 16 years of experience in arranging investment into social enterprises, and now has over £160m under management through eight social impact investment Funds. These funds deliver financial return as well as targeted social impact in a range of areas – from tackling homelessness to health inequalities.

GB Investment Magazine · November 2018

EIS Open

May 2018

SEIS Open

Evergreen: First tranche for 2018/19 closing early December, second tranche mid-March 2019.

Amount to be Raised: £5m Minimum Investment: £10,000

Jenson SEIS & EIS Fund 2018-19 Applying a very structured sector agnostic investment approach, the Fund targets exciting, innovative and disruptive technologies which qualify for SEIS investments, where we typically invest the full allowable amount of £150,000 per company. These investee companies are then nurtured via the Investee support programme, which provides financial and operational assistance to enhance returns, a key differentiator between Jenson and other SEIS and EIS providers. The EIS element of the fund is used to provide follow-on funding to fully exploit commercialisation of a proven business model. Specifically, the EIS fund will concentrate on the best of the Funds existing portfolio but will always be benchmarked relative to new external company opportunities. Having access to an extensive and existing SEIS portfolio enables follow on funding at a fair price. Jenson Funding Partners has been investing since 2012 and has made just under 100 investments. To date the SEIS has invested circa £12 million and the EIS, combined with the syndicated investors, has invested over £5 million and raised over £5million of debt facilities.

T. 020 7788 7539 E. seis@jensonsolutions.com www.jensonfundingpartners.com

EIS Open

January 2015

EIS Close

Evergreen

Amount to be Raised: Unlimited

The combined SEIS and EIS structure enables an individual to choose whether to invest in earlier start-up companies within SEIS or later stage companies under EIS, invest solely via SEIS or EIS or split funds across both. The minimum has been reached to close the first tranche for 2018/19 but will remain open until early December for carry back purposes, 2nd close mid-March 2019 (subject to minimum fund raise).

CHF Enterprises CHF Enterprises Limited presents an exciting opportunity for UK tax payers to invest in SEIS and EIS qualifying Family Entertainment via CHF’s Investee Companies, whilst benefiting from risk mitigation through considerable investor Tax Relief and government backed Tax Credits. A 40 Year Global Success Story: The CHF creative team can trace its history to UK’s Cosgrove Hall producing household names including Danger Mouse, Wind in the Willows, Noddy, Postman Pat, Roary the Racing Car, Count Ducula… winning 9 BAFTAs and 2 Emmys. The CHF Media Fund was set up in 2015 to offer the opportunity to invest in the new slate of CHF content. Why the CHF Media Fund? • Proven Track Record and award winning team with 250+ years collective industry experience with time also spent at Disney, Henson, Dreamworks and more • Low charges and market leading RIY • 3-5 year Exit Strategy from each show’s launch • Target Return 3 times net investment with unlimited upside and no cap

T. +44 (0)117 214 1149 E. ninacarr@chfmedia.com www.chfenterprises.co.uk

• Fortnightly Deployments with EIS 3’s issued at earliest opportunity • Unique Multiple Revenue Streams from worldwide broadcast and online sales plus licensing and merchandising • Government Animation Tax Credit benefits should apply to all UK produced CHF shows

GB Investment Magazine · November 2018

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