Forward Facing | GBI 12 | Dec '18 / Jan '19 by Clifton Media Lab

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GrowthInvest: Simplifying tax efficient investments. Igniting the UK economy. The tax efficient investment market has changed significantly in recent years. With tax efficiencies being clearly directed toward growing the UK’s most promising young companies, there has never been a better time to get involved.

products, or perhaps considering them for your clients’ portfolios, contact us at GrowthInvest. We’ll show you how you can consolidate historic investments onto our platform and build a diversified portfolio from a wide range of tax efficient product providers.

However, diversification and transparency has never been more important and with this comes an administrative headache.

Through our intuitive online platform you’ll be able to offer your clients easy access to real portfolio growth, secure in the knowledge that these government-backed schemes offer unique tax efficiencies.

At GrowthInvest we provide advisers a single portal to compare, invest in and manage clients’ tax efficient portfolios, integrating seamlessly with your backoffice solutions. Whether you’re already advising on SEIS, EIS, VCT or BPR

Visit us to learn about the products, the pitfalls and how best to advise on this dynamic and evolving sector.

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CONTENTS CHAPTER • 1 News

A round up of industry news

CHAPTER • 2

No News can be Good News: VCTs and the Budget

Annabel Brodie-Smith Communications Director at the Association of Investment Companies, tells us why no news was good news for VCTs.

Budget Boost for EIS

Mark Brownridge, Director General of the EIS Assocation sets out the positive news for EIS from the Budget

EIS: Don’t wait and See, Invest!

As the government continues to throw its weight behind EIS, Andrew Aldridge, Head of Marketing at Deepbridge Capital, explains why Advisers need to get investing.

The Exiteers

Bringing you news of successful exits in the sector

Spearheading the Start Up Miracle

The UK is at the forefront of innovation when it comes to creating world class technology companies, says Will Orde, Investment Manager at Oxford Capital

Preview of Upcoming Events

Mark Brownridge talks us through EISA’s upcoming conference on Effective Financial Planning using EIS and BR.

CHAPTER • 4 Open Offers

Our monthly listing of what’s currently available for subscription

Disclaimer

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 such, no reliance may be placed for any purpose on the information and opinions set out within it. Past

GBI Magazine is published by IFA Magazine Publications Ltd, Arcade Chambers, 8 Kings Road, Bristol BS8 4AB

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Editor-in-Chief: Michael Wilson editor@ifamagazine.com

Publishing director: Alex Sullivan alex.sullivan@ifamagazine.com

City Editor: Neil Martin neil.martin@ifamagazine.com

Design: The Wow Factory www.thewowfactory.co.uk

Full subscription details and eligibility criteria are available at www.gbinvestments.co.uk ©2017. All rights reserved. Full subscription details and eligibility criteria are available at www.gbinvestments.co.uk

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.

News

Welcome So, here we are, 2018 has been a fantastic year for GBI Magazine and we are immensely grateful to our all our readers, our sponsors and our clients. As we run down to the Christmas season we want to wish everyone the happiest of festivities. Our last issue of the year is unsurprisingly full of post-Budget commentary. Industry leaders Mark Brownridge of EISA and Annabel Brodie-Smith from the AIC provide positive news as they take us through Budget implications for EIS and VCTs, and with an eye to the future they reflect on what we need to know for the coming year. Andrew Aldridge of Deepbridge Capital urges advisers to get stuck in and invest in EIS and Will Orde of Oxford Capital explains why the UK is at the forefront of innovation when it comes to creating world class technology companies. Along with our regular features on exciting new exits, just around the corner as I write this, on 30 November we will be attending the EIS and VCT Investor Forum and on 7th December EISA are hosting a one day event on effective financial planning using EIS and BR; two important sector events that we are proud to help promote (to learn more and book your place, full details of both are in our events feature). Our Open Offers section is brought to you in partnership with GrowthInvest so do please check out all the opportunities that are currently available as we prepare for a very busy New Year 2019. A huge thank you to everyone who reads GB Investment Magazine and to our wonderful Eds, and creative design and marketing team at CML; we couldnâ&#x20AC;&#x2122;t do this without you. Merry Christmas and see you all in 2019. Alex Alex Sullivan Managing Partner CML | GBI Magazine | IFA Magazine

GB Investment Magazine Âˇ Dec|Jan 2019

News

CityUnscripted EIS raises £1.25m in just 22 days

ondon-based city experiences operator CityUnscripted has raised £1.25 million from Wealth Club investors in the three weeks since opening.

To accelerate its growth plans, CityUnscripted decided to raise £1 million under EIS, in a deal available exclusively through the Wealth Club. There was so much interest from investors, the company agreed an over-allotment facility of £250,000. The total amount of £1.25 million was raised in just 22 days. Wealth Club told GB Investment Magazine that the strong demand mirrors other recent single company EIS offers from their portfolio, adding that these have sold out in record time as recent rule changes push investors away from investing in asset backed investments, which is no longer allowed, into genuine fast-growing entrepreneurial businesses. CityUnscripted offers private and personalised experiences with a city host in 35 destinations around the world including New York, Tokyo, Madrid and London. The aim is to give curious travellers the opportunity to see a place through an inspiring lens. The company has been growing 20% a month on average for the last 20 consecutive months on a relatively modest investment said the Wealth Club.

The global tours and experiences market is currently valued at $18 billion and forecast to grow at 11% a year until 2020. Nick Whitfield, founder of City Unscripted, said: “We are so happy with the overwhelmingly positive response from the Wealth Club investor network, what we do clearly resonates as strongly with them as it does with our guests. Their investment will help us to supercharge our growth so that we can offer and deliver exceptional city experiences to a much larger audience in a much shorter time.” Alex Davies, founder of Wealth Club, added: “A regular stream of investment opportunities lands on my desk every week. This one immediately stood out. It’s a genuinely entrepreneurial business in an attractive market, which has achieved impressive results on a shoestring. In my view, they’ve also combined a great idea, with a passionate and determined management team. They’ve all left the corporate world and taken significant pay cuts to turn CityUnscripted into a success. With the money we’ve helped them raise they should be able to compete on a more level playing field with much larger companies with far deeper pockets.” GBI

GB Investment Magazine · Dec|Jan 2019

News News

Foresight backs Fieldway Supplies

oresight Group has made a £2 million investment into Merseyside-based Fieldway Supplies, a leading provider of fire alarm and electrical installation, maintenance and repair services to a wide range of public-sector bodies and companies across the North West. Fieldway primarily services Housing Associations, but also provides merchant services, compliance services, project management and shop fitting services to the retail and leisure industry. Established by Brian Murphy in 2006, Fieldway has experienced strong organic growth in recent years and currently employs 35 engineers. Customers include Transport for Greater Manchester, Onward Homes, Your Housing Group and Plus Dane Housing. Tony Carden, Fieldway’s Business Services Director, will step up to Managing Director with Brian Murphy remaining as CEO. The investment

GB Investment Magazine · Dec|Jan 2019

focus will be on helping the business scale by executing on tenders won through the recently signed agreements. Stephan Gueorguiev, Senior Investment Manager, Foresight, said: “We have been very impressed with the level of organic, profitable growth Fieldway has been able to achieve to date. The recently signed framework agreements position the business well for future growth and we look forward to working with Brian, Tony and the team to support Fieldway’s expansion both geographically and introducing additional services.” Murphy added: “We are delighted to be working alongside Foresight to further develop our offering and enhance our position in the marketplace. Foresight’s experience in supporting businesses and developing UK SMEs will be invaluable to the future growth of the business.” GBI

News

Kin Capital and Enterprise Investment Partners merge

in Capital and Enterprise Investment Partners have merged to create what they have described as ‘a major new force’ in venture capital investing.

The strategy is based on forming a stronger and larger firm geared up to face the challenges of the next few years by streamlining investment processes. Known as Kin Capital, the merged entity will also offer a complete package of services to venture capital, private equity and property funds, including: sponsoring and promoting fundraises, investor relations and reporting, regulatory fund management, appointed representative, compliance and custodial services, resulting in cost savings for clients by reducing the need to use multiple different providers.

Hoskins said: “Our two businesses fit together perfectly. We are committed to offering clients and advisers a full suite of services from fund set up to fundraise and investor reporting. We work with thousands of clients and some of the leading fund managers in the tax efficient space. With our tie up with EIP, we can offer a joined-up solution and a more efficient service for our clients.” Elmes added: “This merger came about by recognising that we could make our clients’ lives simpler. On the one hand, venture capital firms face challenges in finding a ‘one stop shop’ for fund services. On the other, investors and advisors want to engage with a firm that can provide them with choice, transparency and quality, as well as fast and insightful reporting on their tax efficient investments.

Christian Elmes and Richard Hoskins, co-founders of EIP and Kin respectively, will lead the new entity.

“We are already working to address these challenges and provide a robust, transparent and cost effective range of solutions for our investors and clients.”

Elmes said: “We are very excited about our new combined entity and believe our offering will be one of the most comprehensive in the venture capital market.”

In addition to the merger, Kin Capital will also become co-owner of Enterprise Incubator and Consultancy along with its Founding Partner, Joseph Lazaris.

Having collectively raised around £500 million, Kin Capital will offer market leading tax efficient products to investors and intermediaries, including the industry’s largest growth EIS fund by Parkwalk Advisors and the industry’s top leisure and hospitality EIS fund, Imbiba Leisure.

Established in 2016, EIC is a dedicated compliance consulting business, helping financial services businesses comply with UK and EU financial services regulation. GBI

GB Investment Magazine · Dec|Jan 2019

News

Plans to reform EIS in 2020

he government has said that it will reform EIS in 2020.

The new HM Revenue & Customs (HMRC) approved fund structure will be targeted at knowledge-intensive investments and will retain its current nominee structure. The announcement was made within a paper published alongside the 2018 Budget which follows an industry consultation on how to finance growth in innovative firms. The new approved fund structure will feature: • A new requirement that at least 80% of funds raised must be invested in knowledge-intensive companies will be introduced; • The time period over which approved funds must make their investments will be extended from one year to two. Funds will be required to invest at least 50% of each raise within the first 12 months, and to keep that monies not yet invested in cash; • A carry-back rule will be introduced so that investors will be able to set their relief against income tax liabilities in the year before the fund closes; • Approved funds will be required to submit annual statements to HMRC to demonstrate that they continue to meet the relevant conditions. It had been decided not to introduce relief at the point investors contribute to the fund, said the government, because this “…would be a fundamental change to the entire structure of the EIS as the market continues to adjust to the Patient Capital Review changes.” It went on to say that “the objective of providing these additional flexibilities for EIS funds through the new approved structure is to ensure additional patient capital reaches knowledge-intensive companies. The government also encourages new fund managers and angel groups to enter and develop expertise in knowledge intensive sectors. It added: “This new approved fund structure is intended to work alongside the other changes announced as part of the government response to the Patient Capital Review. As outlined in that response, the government will continue to monitor the market and will take action against behaviour not in the spirit of the Venture Capital Schemes where necessary. As with all tax policy, the new approved fund structure will be kept under review.” GBI

GB Investment Magazine · Dec|Jan 2019

Eight Members Club London presents two venues in the heart of the city. The clubs offer members a wonderful space in which to both work and of course relax while taking advantage of our wonderful restaurant and bars, with an amazing event space, pool table, cinema and over 10 beautifully appointed meeting rooms. To discover more go to www.eightclub.co.uk.

News

Foresight Williams Technology EIS Fund invests in e-bike company

oresight Williams Technology EIS Fund has invested £1.7 million into e-bike system company FreeFlow Technologies.

FreeFlow is developing a patented e-bike system technology that claims to be lightweight and compact, providing a higher power density than existing solutions. It is said to be a novel design which will improve the ride experience and bike aesthetics as it can be packaged within the bicycle frame. An additionally developed mechanical transmission system for fixed wheel bikes allows the rider to freewheel, whilst retaining the smooth ride quality of fixed wheel. As part of the investment, Martin McCourt, former CEO of Dyson, will join as Chairman. Neil Edwards, who was Group Operations Director at Dyson for five years will join as Chief Technology Officer and become a director. John Holden, Director of Foresight, said: “The fund’s strategy is to support innovative UK businesses with disruptive technologies. FreeFlow is a great example of engineering innovation in a relatively new and fast-growing market. We look forward to working with the FreeFlow team as they grow their business and helping with the commercialisation of their product.” Neil MacMartin founded FreeFlow in 2012, following over 15 years’ experience in his family bike business, based in Glasgow. FreeFlow’s e-bike

GB Investment Magazine · Dec|Jan 2019

system is designed with the rider in mind, allowing e-bikes to be ridden faster and further for less effort when powered and to ride like normal bikes when unpowered. James Shepherd, Chief Executive of FreeFlow, commented: “We’re delighted to receive this investment from the Foresight Williams Technology EIS fund. We’re excited to be partnering with a world-class team on the development and launch of our compact, high performance e-bike system, into the rapidly growing global e-bike market. We’d also like to take this opportunity to say a big thank you to all those who’ve supported us to date, not least Scottish Enterprise, Angels Den and Dunelm Energy.” Williams Advanced Engineering has direct experience in the e-bike market having created the electric transmission system for Brompton Bicycles. Craig Wilson, Managing Director of, Williams Advanced Engineering, said: “We are pleased to support the investment in FreeFlow and look forward to assisting them with further enhancements of their innovative technology. Williams has a strong track record on four, and on occasion six, wheels, but we also have experience in the e-bike market already, having already worked on the Brompton Electric. This marks a further positive development to our work in electrification and technology development on two wheels as an additional aspect to our company’s diversification.” GBI

News

IW Capital provides loan to support the acquisition and development of Troika Systems

W Capital has provided a £1.1 million loan to support the acquisition and development of Troika Systems, a global leader and specialist supplier to the printing and packaging industry. Troika Systems is a long-established UK manufacturer and distributor of 2D and 3D microscope scanning and management systems. Fresh Equity, the Midlands-based SME investor, will be working with the management team to further grow the sector profile of Wiltshire-based Troika and its presence in the global marketplace. The acquisition marks the first transaction that IW Capital has completed with Fresh Equity Ltd. Both parties hope to do more deals together in the future. Luke Davis, Chief Executive and Founder of IW Capital, said: “The funding provides a major boost to a well-established, UK company to help expand its global presence. We are pleased to have worked alongside Fresh Equity in the acquisition of Troika Systems and, with our new Secured Debt Fund, we are well positioned to support other businesses and their growth plans ” Simon Hughes, the new Chairman of Troika, added: “Troika is an exciting business and investment opportunity. The business will maintain its core aims and values and additional commercial resources will support the existing staff while helping to push its growth further.” GBI

GB Investment Magazine · Dec|Jan 2019

NO NEWS CAN BE GOOD NEWS:

VCTS AND THE BUDGET

Sometimes the best thing that can happen in finance is nothing at all says Annabel Brodie-Smith, Communications Director at the Association of Investment Companies.

o news can be good news when it comes to Budgets.

Following the significant VCT rule changes and the government’s recognition of VCTs as effective providers of patient capital in the Autumn Budget of 2017, it was good that the VCTs were off the hook in this year’s Budget. Thankfully, there was no mention of the letters “VCT” in the Budget book.

met. Stark said: “The government is determined to make sure this country continues to be the best place for people to build up an idea. New and innovative companies and technologies are vital to our country’s long-term financial health. These companies provide competition and in time will provide new jobs.”

The VCT industry needs time to digest the changes announced in 2017, a number of which do not come into effect until 2019. And of course, the 2017 overhaul came hard on the heels of the 2015 VCT rule changes. So a period of calm makes sense.

The VCT industry’s reaction to the rule changes has been very sensible. Initially, when the changes were introduced several VCTs paused or scaled back fundraisings to give them time to consider the implications of the amendments. Activity then picked up, and in the six months since the rule changes, VCTs have invested in 144 companies through a combination of first time funding and secondary funding.

This was a message that Donald Stark, Head of Investment Tax at the Treasury, repeated at the AIC’s VCT Conference in November. He said he appreciated VCT managers needed time to adjust to the changes brought about following the Patient Capital Review but the government would continue to monitor whether the new risk to capital conditions were being

Interestingly, 22 of these companies were ‘knowledgeintensive’. In case you are wondering, this means they have to invest significantly in R&D and either create intellectual property or have a high percentage of the workforce with higher education degrees. A relaxation of the rules for knowledge-intensive firms was one of the headline grabbing rule changes from the Autumn

GB Investment Magazine · Dec|Jan 2019

2017 Budget. These firms benefited from a doubling of the annual investment limit from £5 million to £10 million for investments made by VCTs and EIS. Although all was quiet for VCTs, patient capital received a number of mentions in the Budget. There was an announcement that through the British Business Bank, the government will support pension funds to invest in growing UK businesses. Several of the largest defined contribution pension providers in the UK have committed to work with the British Business Bank to explore options for pooled investment in patient capital, including Aviva, HSBC, Legal & General, Nest, The People’s Pension, and Tesco Pension Fund. The FCA also intends to publish a discussion paper by the end of 2018 to explore how effectively the UK’s existing fund regime enables investment in patient capital. This will accompany the ongoing work of the Treasury’s Asset Management Taskforce to explore the feasibility of a new long-term asset fund. While such ideas need fleshing out, the government seems serious about encouraging more patient

capital type investing. Investment companies, with their closed-ended structure enabling genuinely long-term investments, need to be part of the solution. The private equity investment company sector has returned 290% over the last 10 years.

Although all was quiet for VCTs, patient capital received a number of mentions in the Budget.” Of course, VCTs are also recognised as effective providers of patient capital. They invest in smaller young companies or start-ups and are up 147% over the last ten years. We look forward to participating in these discussions very soon but the future for VCTs and their role in providing patient capital looks assured. GBI

GB Investment Magazine · Dec|Jan 2019

BUDGET BOOST FOR EIS

Mark Brownridge, Director General of the EIS Association (EISA), sets out the positive news for EIS from the Budget

he Budget, and the changes brought with it, contained plenty to be positive about for small businesses and the investment schemes that they benefit from.

To qualify as knowledge-intensive, companies ought to have spent at least 15% of its operating costs on innovation and research and development in at least one of the last three years.

Entrepreneurs in the UK needed to be assured pre-Brexit that they would continue to receive support encouraging investment and growth in the SME arena and it seems that that is what we’ve got in this final Budget before Brexit.

Further to this, the company should have allocated at least 10% of operating costs in each of the last three years to research and development (R&D). This new fund structure will serve as a huge boost to innovative businesses nationwide, and will help to strengthen a sector that is already setting the global standard for creativity and new ideas, of which many may have an effect on the future of the global economy.

SMEs make up 99% of UK private sector businesses and contribute £1.9 trillion to the UK economy, so ensuring continual growth is key to securing the future of a sector which provides the foundation of communities and employment nationwide. The stand out announcement from the government was the new EIS fund structure; this will focus on knowledge-intensive small businesses and is to be introduced in 2020. The new fund structure will require 80% of funds raised by the scheme to be invested into knowledge-intensive businesses.

GB Investment Magazine · Dec|Jan 2019

There is a new limit on how quickly the investments must be made, increasing from one year to two with half of the funds to be invested within 12 months. This means that there will be slightly more flexibility for businesses looking to grow and expand at the right moment. The time period to make investments has been an issue for fund managers, so it’s also good to see the government has listened and reacted on that.

PROTECTING BUSINESS Protecting high-growth companies during the transition period of Brexit and post-Brexit is going to be vital as we navigate one of the most transformative periods in our political and economic landscapes. With our private sector advancing rapidly, it was of crucial importance that advancements to EIS reflected this evolution, especially in an era where standing still in the global economy is more like being left behind. The extra tax incentives that this fund provides aims to boost investment to keep the pace of growth during this period of change. This is a positive step for the small businesses that do qualify for knowledge-intensive status. However, we have got to be careful that we do not let the vital community of businesses propelling more traditional sectors, such as industry and manufacturing, fall into their wake. PENSION POWER One possible way of addressing this danger was also announced by Chancellor Philip Hammond in the form of a feasibility study for defined contribution (DC) pension funds to be used to invest in highgrowth SMEs. This plan has the potential to act as a double-edged sword in tackling the problem of not only finding funding for businesses looking to expand but also to help bolster the returns of pension savers. It is, however, still subject to the results of the study that will have a number of technically challenging, pension-specific, challenges to navigate to make this kind of investment work. However, we have long been recommending that the government opens up earlystage investment to pension schemes. We believe that investors would directly benefit if the Treasury moves forward with the changes, so we are pleased to see this feasibility plan in place. BUDGET BLACKOUT Whilst the Budget certainly offered some good news for small businesses, it’s important to remember that this Budget could be largely defunct in a matter of weeks depending on what happens in the Brexit negotiations. This could potentially leave SMEs and business investors in the dark in the short term. This is especially relevant to SMEs that are looking to grow in the near future, as picking the wrong moment to expand can cause otherwise strong plans and models to falter in light of unexpected changes to legislation and

The stand out announcement from the government was the new EIS fund structure business infrastructure. Brexit resilience can only be secured once the full array of outcomes is known and SMEs are supported, whatever the business climate is like post-March 2019. WOMEN IN THE WORKPLACE One thing that was notable by its absence was the lack of initiatives or extra support for women in business or looking to become entrepreneurs, after the work done in the Women in Finance Charter to promote the advancement of equality in the finance sector. In this sense, the Budget missed an opportunity to do more on this subject. We, as an investment community, need to take a leading role in supporting female investors, entrepreneurs, and business people to come forward to support the entrepreneurial economy. EISA takes an active role in supporting small and mediumsized companies, hundreds of which are founded by women. Clearly making the most out of the UK’s pool of talent, ideas, and creativity to found and grow new businesses is of paramount importance to ensure that we have a resilient, Brexit-proof and globally facing economy in the coming years. This Budget, overall, was a step in the right direction for small business in the UK with the new EIS fund leading the way and the DC feasibility study offering the possibility of even more good news for SMEs looking to grow and expand in the next few years. It’s quite clear that EIS and SEIS are going to be part of the government’s plans in the lead up to and after Brexit. That is really good news, especially as in 2019, we celebrate the 25th anniversary of EISA. We work to support small businesses and the government whose legislation applies to the scheme. That all being said, there is still work to be done to cement the position of these SMEs, their ability to grow and to innovate freely, as well as giving women the best possible opportunity to create and expand their businesses. GBI

GB Investment Magazine · Dec|Jan 2019

EIS: DON’T WAIT AND SEE,

INVEST! The latest Budget shows the government continues to throw its weight behind EIS, says Andrew Aldridge, Head of Marketing at Deepbridge Capital, and advisers should get investing

was recently in conversation with a foreign national who found it intriguing that, in the UK, the general public take an interest in the Budget and that it is widely covered and scrutinised by the media. Apparently, this is not the case in other European countries where this individual had previously lived, worked and studied. Of course, I naturally explained that for most people, and tabloids, the key points of interest are the price of beer, cigarettes and petrol. However, the ceremony around the red briefcase is a British tradition and we naturally pore over it in great detail to assess what it means for businesses, regions and individuals – all with a natural focus on those areas which affect our own personal or business interests.

There is no doubting that the current Chancellor himself is hugely supportive of EIS in particular

GB Investment Magazine · Dec|Jan 2019

REINFORCED SUPPORT The Budget 2018 naturally didn’t reference EIS as much as in 2017, but that was to be expected as 2017 was a largely unprecedented refocus of venture capital reliefs. Rather, the 2018 statement followed on from 2017 with updates on both the digitalisation of EIS administrative processes and the response to the EIS knowledge-intensive fund consultation. Once again, this budget was hugely supportive of EIS and VCTs, as tools to provide funding for earlystage businesses, and reinforced this government’s support for managers and investors seeking to assist growth-focused companies. There is no doubting that the current Chancellor himself is hugely supportive of EIS in particular, and given this government’s work to re-establish the original aims of the scheme, it will continue to play an important role in developing funding and backing for the next generation of UK firms. EIS WELL PLACED This support is of course all tied up with the Chancellor’s vision for the future of the UK economy, and the Budget speech was peppered with references to technology, digital futures, and creating an environment in which businesses can thrive.

That clearly plays into the hands of those EIS investment managers who specialise in such sectors and provide funding to these types of investee companies, and the Budget also placed some more meat on the bone of the new EIS ‘knowledge intensive’ (KI) approved fund, which was initially announced last year. Following its own consultation, the government has announced a number of measures, and we now know that the EIS Approved Fund structure is due to be introduced from April 2020 and it will be part of the Finance Bill 2019-20. Some highlights of this new structure include: • A requirement that at least 80% of funds must be in invested in KI companies. • Funds can now make their investments over two years not one. • Funds must invest at least 50% of each raise within the first year, and any monies not invested must be kept as cash. • The introduction of a ‘carry back rule’ which means investments will be able to set their relief against income tax liabilities in the year before the fund closes. • Those funds which are approved must submit annual statements to HM Revenue & Customs (HMRC) to demonstrate they are continuing to meet the relevant conditions. Interestingly, and given the current state of Brexit negotiations with the EU, something to consider is the fact that the fund would be subject to the EU State Aid requirement, and therefore it will be dependent on what comes out in the wash regarding an EU exit deal (or otherwise). As in so many areas of life and business at present, we will be watching those negotiations with great interest.

GB Investment Magazine · Dec|Jan 2019

CONTINUED FUNDING

DON’T WAIT AND SEE

It is however hugely positive to see the continued government interest and support for the EIS sector and it clearly sees it as a major provider of funding for UK companies for many years to come. Tellingly, the government ‘believes the introduction of the risk to capital condition has been successful in preventing abuse and re-directing capital towards higher growth areas’ which is essentially confirming it was right to move EIS back to its original, stated aims, and that it has seen some positive movement away from those funds which were purely focused on capital preservation.

Overall, the news regarding the KI-approved EIS fund is clearly a positive for the industry however, in our view, advisers shouldn’t be adopting a ‘wait and see’ approach to EIS between now and the launch of those funds in April 2020.

As an investment manager, we are very pleased by this refocus and, even though we have always deployed our funds in growth-focused sectors, specifically early-stage technology and life sciences innovations, it is reassuring to see that the rest of the EIS sector – even if it is due to government intervention and direction – is also starting to ensure funding is going to support innovative companies seeking to grow. One might say such a refocus was well overdue but the fact the changes are having the desired effect is a considerable step forward for the EIS sector, for advisers, and for those clients invested in such funds. FOCUS ON ADMIN One further area to be covered by the government’s Budget response to its own consultation is around the EIS administrative process and how it might be approved. The new, online forms now mean that digital EIS1 certificate submissions from applicant companies can now be accepted by HMRC, and it will also issue digital EIS2 and EIS3 compliance certificates to businesses and their investors. Moving away from paper certificates will speed up the process considerably, will provide an environmental benefit and dial-down the administrative burden on all EIS stakeholders. Again, this is long overdue but is perhaps a sign of how serious the government/ HMRC takes the EIS sector now, and the support it is willing to give those of us involved in it.

GB Investment Magazine · Dec|Jan 2019

From our perspective – as we do every year – we will review our product offerings and will consider whether a KI-approved fund structure might be beneficial to both our adviser partners and their clients. However, our EIS funds already deploy on a monthly basis anyway and it might therefore have little impact on our propositions. Perhaps instead, between now and April 2020, the key question advisers and investors should be asking is just how quickly managers can deploy their funds into quality investee opportunities, as this ultimately dictates how quickly investors will be able to claim their tax reliefs and it will also provide an idea of potential exit timescales from those investee companies. The further good news is that there are undoubtedly great investment opportunities out there for appropriate investors and with the Budget demonstrating the government’s continued (and growing) backing for EIS, we believe they should not be overlooked. This is a positive time for the EIS market and – even with uncertainty about what the future might hold – the need for such funds and the funding requirements of UK companies in KI sectors, means this is now the time to get on board and use the best EIS investment managers for those clients for whom EIS investment makes perfect sense. GBI

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Only read what’s worth reading.

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THE EXITEERS

GB Investment Magazine Â· Dec|Jan 2019

Bringing you news of successful exits in the sector FUND: Seed Mentors Seed EIS EXIT: Movem

HAT DOES THE COMPANY DO?

Barbon, under the Homelet and Rentshield brands,

Movem is a business that offers a platform allowing users to write reviews of letting agents, landlords and properties and build up reputations for themselves as trustworthy tenants.

is the leading integrated tenant referencing and

Originally targeted at the student market it now extends to all tenants, landlords and letting agents. Movem is being used in every university and is publicly endorsed by more than 25 students unions as well as active in over 500 towns and cities.

development and created the first site, dropping out

The company developed a passport to save tenants money on referencing fees and focused the business very much on that aspect. It’s now very relevant because of the ban on tenants’ fees. Tenants are able to build up their own profile including recommendations from previous landlords and agencies. The Movem Passport provides the most comprehensive instant tenant reference in the market, verifying income, affordability and previous rental payments.

insurance specialist in the UK lettings sector. HOW MUCH WAS RAISED? Peter Ramsay, the founder, taught himself basic web of university to pursue his idea. The company was launched in June 2013, then relaunched in May 2017, raising funding through Seed Mentors in April 2015 totalling £137,000, In September 2016 Movem crowdfunded another £200,000 and in October 2017 crowdfunded another £400,000. After the acquisition Ramsay stayed on as the Chief Executive with the eight strong team he built up. With the support of a larger corporate the business can reach new levels. After the acquisition Ramsay thanked the 520

There is little trust in the landlord-tenant market and this helps foster it to a greater degree. That is one of its disruptive features.

shareholders that had supported him, some with as

It is a fraud prevention measure as well. In the first 90 days from launch, the instant referencing product sold 100,000 references. What Movem has done is found a way of meeting government policy on the way the rental market in the UK should develop, achieving a real social benefit in the process. It makes renting fairer and simpler.

after applying the basic 50% tax relief in a period of

HOW WAS THE EXIT ACHIEVED? The business was acquired in September 2018 by Barbon Insurance Group for an undisclosed sum which allowed Movem to continue as a stand-alone business.

little as £10. The fund that Seed Mentors represented have now exited with a very attractive return enhanced just 42 months. THE FUTURE Movem effectively created the future of tenant referencing powered initially by the funding Seed Mentors introduced. Movem continues to look for talented people to expand its business. The initial angel investment from the fund achieved its designed purpose and its investors now move aside.

GBI

GB Investment Magazine · Dec|Jan 2019

SPE R HEADI G THE START-UP ‘MIRACLE’ The UK is at the forefront of innovation when its comes to creating world class technology companies, says Will Orde, Investment Manager at Oxford Capital

n recent years, entrepreneurship and start-ups have taken increasing prominence in the UK.

The UK has a burgeoning track record of developing truly world class and highly valuable technology companies. There are many factors which have contributed to this but one significant reason has been the enlightened fiscal and regulatory approach taken by the UK government. At a dinner in London keynoted by Kevin Hollinrake, MP for Thirsk and Malton, he spoke of the “start-up miracle” in the UK, and as an investor trying to support some of the UK’s brightest entrepreneurs and most exciting companies, we are obviously delighted that the outlook remains positive for early stage technology investment. In the recent Budget, the government announced a number of new measures to bring additional capital into the space, while also reaffirming its commitment to existing schemes, such as EIS. The government continues to work to address the funding gap for ‘knowledge intensive’ (KI) companies, which it identified in the Patient Capital Review last year. One significant new initiative announced which stood out in particular as a promising addition was the introduction of an improved approved EIS fund structure, focused on knowledge intensive investment. A NEW STRUCTURE The announcement of a new approved fund structure for EIS, targeted at investment in KI companies, will be available for fund managers from April 2020. This new fund structure, is designed to help reduce the administrative burden on EIS investors by removing

GB Investment Magazine · Dec|Jan 2019

the need for a separate EIS certificate for each investment made and providing clearer timings for tax relief. In order to qualify, a fund must make 80% of its investments into KI companies and deploy all of the capital raised within two years. For Oxford Capital this new structure is an important improvement over the existing approved fund structure and a sign of continued government support for EIS which of course we welcome. In essence the new structure promises to make managing EIS investments easier for investors, so long as those investments are directed towards KI companies. So why does the government, and why should we, care about promoting investment into KI companies and what is all the fuss about Patient Capital? SETTING THE SCENE There are a set of tests which precisely define what a KI company is. These tests relate to three factors: the proportion of a company’s operating expenses that it directs towards research and development (R&D), the number of PhD and other highly qualified staff that it employs, and the extent to which it relies on the novel intellectual property that it develops to support its business. From a technical perspective, companies need to meet the threshold tests in at least two of these three areas. From a high-level perspective it means that small companies looking to develop novel technology or science-based products are likely to qualify. As noted earlier this is an area of great strength in the UK and it is great to see further support for these initiatives.

A DAUNTING TASK?

UK: A KNOWLEDGE HUB

Developing genuinely novel products is not easy. It can often take teams of highly qualified people years to develop these products to the point that they are ready to go to market, all of which requires the investment to fund it and the patience to complete the journey. Early investors in KI companies may not see a cash return on their investment for many years until the company is either sold through an M&A event or achieves a listing. Trying to sell out early can often result in a much smaller outcome and undermine all the hard-work of the entrepreneurs, hence the need for ‘patient capital’.

The UK is a great place for aspiring entrepreneurs to build successful tech companies. The UK has a great knowledge base, with both world-class universities and a broad and deep talent pool of developers and innovators, providing the raw material required to build a great company.

That may sound like a daunting task, but the reward is worth it. If a company does manage to develop a new product that delivers genuine value for customers it will be well positioned to grow rapidly and deliver value back to its investors, as seen with the recent phenomenon of ‘unicorns’ (companies reaching a $1 billion-plus valuation within 10 years of being founded). And it is not just the company’s investors who benefit. Early stage companies are one of the main drivers of job creation in the UK economy and leverage the strong base of intellectual property being generated by our universities to turn it into commercial products.

We have enlightened regulators and a government that has not wavered in its support for digital industries.

The UK is also a powerful commercial centre with ready access to financial markets. We have enlightened regulators and a government that has not wavered in its support for digital industries. The Financial Conduct Authority ‘Sandbox’ is a great example of how forward-thinking regulation can support the growth of innovative new companies. Finally, we have a rich ecosystem of early adopters, from a consumer market with one of the highest penetrations of e-commerce globally, to the NHS, which is actively embracing new digital products. These early adopters are crucial to any new start-up looking to find those first customers. At Oxford Capital we have identified a small handful of areas in which we believe the UK is especially well positioned and where great companies are likely to be built. These areas include digital healthcare, financial technologies, artificial intelligence, the future of mobility, and the future of retail. We have been proactively seeking out companies building novel products and changing the future of these industries and investing in those that we believe have the strongest potential.

GB Investment Magazine · Dec|Jan 2019

FINDING INVESTMENTS We invested in Manchester-based Push Doctor in 2016. Push Doctor is the UK’s leading provider of remote consultations for patients with GPs. In the early phase, its focus was on persuading patients that mobile GP consultations could be as good as those in person. Research shows that eight out of 10 cases that a GP encounters can be resolved virtually. That change has now happened. Push Doctor has a network of 7,000 doctors, serving thousands of patients, helping to democratise healthcare access and make it available in a more flexible manner. Building on the brand created in the direct-toconsumer market, its model has been expanded to support NHS practices and to support forwardlooking businesses wishing to make healthcare services available to their staff. The company is now focusing on further technology developments to make better use of data and to enable patients to access an array of secondary care as well as primary consultation. KI companies can be found across a wide range of sectors, from biotech to artificial intelligence. Often these companies can be found tackling surprising problems, which may require expertise in multiple disciplines. One of the companies we invested in this year, Xihelm, is a great example of this. Xihelm is developing novel applications in the field of 3D computer vision and robotics. They are applying artificial intelligence to the specific initial problem of automatically and reliably picking tomatoes in glasshouses. The harvesting of tomatoes and other fruit and vegetables represents a huge market and one where automated solutions offer the potential of massive

GB Investment Magazine · Dec|Jan 2019

efficiency gains for farmers. It is a large prize to aim for and, again, an area in which we believe the UK is well-equipped to create a global leader. At the time we invested, Xihelm had developed its AI and built a prototype robot capable of picking tomatoes. The performance in terms of speed and accuracy was encouraging but not conclusive however. Growers recognise, the potential of multiarmed robots working 24/7 to far outstrip the productivity of human labour in this area and so have engaged enthusiastically with Xihelm’s proposition. This will be a long road and it will take time for the technology and machinery to mature and that is why the company will need patient and understanding support from its investors. Part of the role that the manager of an EIS fund plays on behalf of its investors is to be constantly learning and researching new emerging areas of technology and their commercial applications, so that they can be well positioned to judge which companies have the potential to be tomorrow’s leaders. EIS funds offer the potential for individual investors to access start-up investment opportunities normally only available to institutional investors, through venture capital funds, and to both support and benefit from the innovation that is occurring in the UK. These EIS funds also provide the important diversification and expertise needed when investing in high-risk, early stage companies. The newly announced approved fund structure focused on KI companies will help to drive investment into some of the most cutting edge areas of technology and make them accessible to a wider range of investors and Oxford Capital remains excited to be able to play its part in that. GBI

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?

ammond 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

GB Investment Magazine · Dec|Jan 2019

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’

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. GBI

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

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

GB Investment Magazine · Dec|Jan 2019

The UK's No. 1 Conference for VCT & EIS Investors Meet the top VCT & EIS fund managers & the companies they back all in one place

Find out about the best VCT & EIS opportunities for 2018

Understand how to maximize VCT & EIS returns for your clients

Friday 30th November 2018 Grange Tower Bridge Hotel, London

NEW THIS YEAR EXPO18

An amazing Expo celebrating all that is best about our industry.

Join us, book your tickets here

www.thevctandeisinvestorforum.com Featuring

Empowering Direct Lending Investing

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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 · Dec|Jan 2019

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.

30GB GB Investment Magazine · Dec|Jan 2019 30 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

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

32GB GB Investment Magazine · Dec|Jan 2019 32 Investment Magazine · October 2018

Open Offers

EIS

SEIS

Open

Now

N/A

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

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 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):

£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 latest quarterly report, with a page of information on each investment is downloadable from www.oxfordtechnology.com.

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

GB Investment Magazine · Dec|Jan 2019

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.

34GB GB Investment Magazine · Dec|Jan 2019 34 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

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.

36GB GB Investment Magazine · Dec|Jan 2019 36 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

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)

38GB GB Investment Magazine · Dec|Jan 2019 38 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

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.

40GB GB Investment Magazine · Dec|Jan 2019 40 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

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.

42GB GB Investment Magazine · Dec|Jan 2019 42 Investment Magazine · October 2018

GB Investment Magazine Âˇ Dec|Jan 2019

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.

44GB GB Investment Magazine · Dec|Jan 2019 44 Investment Magazine · October 2018

Open Offers

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 · Dec|Jan 2019

THE GROWTHINVEST PORTFOLIO SERVICE.

OPEN FOR BUSINESS.

The GrowthInvest Portfolio Service allows Advisers to introduce their clients to the best of our SEIS and EIS qualifying investment opportunities in a single discretionary managed fund. If you or your clients are interested in a diversified portfolio of tax-efficient investments,

then contact us to find out more. We are helping UK small businesses to realise their full potential, whilst giving Advisers the tools to introduce their clients to this exciting investment category. For more information contact us now at growthinvest.com

MAKE IT YOUR BUSINESS