EIS Magazine - March 2016 - Issue 7 by Alex Sullivan

www.eismagazine.com MARCH 2016 ISSUE 07

Investing for tomorrow

CHANGING THE NARRATIVE ON EIS

SEIS

EIS

VCT

SITR

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BPR

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CONTENTS 4. Editor’s Welcome

EIS Magazine is published by

Telephone: +44 (0)117 9532 003 Editor: Michael Wilson, Editor-In-Chief editor@ifamagazine.com

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

Commissioning Editor: Michelle McGagh Publishing director: Alex Sullivan alex.sullivan@ifamagazine.com

Design: Fanatic Design www.fanaticdesign.co.uk EIS Magazine is for professional advisors only. Full subscription details and eligibility criteria are available at www.eismagazine.com EIS 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 wihtout prior permission. All material has been carefully checked for accuracy, but no responsibility can be accepted for inaccuracies, independent research and where necesary legal advice should be sought before acting on any information contained in this publication.

Michael Wilson, Editor in Chief, says it’s time we had more clarity from the Chancellor as to how he intends to recognise the leading role of investments IS, VCT and BPR

6. Changing the narrative

Paul Wilson, Chairman of IFA Magazine Ltd, explains why the EIS, VCT, SEIS and BPR sector needs to refocus on its enterprise credentials

9. EISA viewpoint

Sarah Wadham, Director General of EISA, on how tax efficiency has crept into the space that was once created for wealth creation. And what we can do about it

10. News

Our monthly round-up of news stories. Keep sending us your news, please.

12. EIS - a changing environment

Matt Penneycard, explains how EIS has evolved as a vehicle for both investors and developing companies

14. 2016: a new era

Peter Schwabach, Managing Partner of Cyrus Investment Management, says the new Finance Act marks a welcome return

16. VCT rule changes? no problem

Annabel Brodie-Smith, Communications Director, Association of Investment Companies, says the new regime holds no terrors

18. SMEs still need us

Tony Mudd, Divisional Director for Development and Technical Consultancy at SJP, expands the argument for investment

To stay up to date with the latest EIS news visit www.eismagazine.com

20. open offers

Our monthly listing of what’s currently avaliable for subscription March 2016 · www.eismagazine.com

Positivity Please The enormous growth that we’ve been seeing in sectors such as EIS, SEIS, VCT and BPR over the last three years ought to bring a glow of pride to everyone in the business. Instruments like these help to focus risk-aware investment right to the heart of the dynamic start-up, early stage and fledgling companies who need it. And the availability of tax efficiencies for investors is a logical and sensible way of completing the virtuous circle that can make the whole thing happen. Message Misunderstood And yet we could all be doing so much more. Everything we’ve been hearing recently from the tax efficient fund management industry suggests a sense of frustration with the slow pace of development from on high – not to mention a series of backward steps, not least for VCTs, which have been making things genuinely more difficult. Government tinkering with the eligibility issues is still sowing doubt and confusion at a time when the water is being further muddied in the pensions sector. What we’re hearing is that too many financial advisers are reluctant to recommend investments which they know too little about. And often, lurking at the backs of their minds are lingering uncertainties - not just about the finer details of the tax breaks themselves, but also about an increasingly negative narrative that’s been coming through from HMRC and the Treasury about the very function of these investments.

Conflicting Priorities To say the least, this is contradictory. We have a Chancellor who talks about a Northern Powerhouse and a March of the Makers, and who wants to nurture

EIS Magazine · March 2016

a technical leading edge that will not only transform the nation’s economy but also cement its central role in the growing digital economy. We have boundless enthusiasm being expressed for the dynamic verve of start-ups and community projects, and so on and so on. And we have only limited government cash available, which means that the private investment sector is indispensable. But it all goes quiet in Downing Street once we get to the tax efficiency part. And it isn’t hard to see why. The political agenda isn’t currently considered conducive to favouring more affluent investors. We’ll agree that some of the Chancellor’s backtracking is not of his own making but comes instead from Europe. Last year’s decision to cut back and then shut the EIS eligibility of alternative investments was the direct result of Brussels directives that banned industries that were already being subsidised from getting further incentives. Scratch the surface of the MiFID 2 legislation and you’ll find a deep mistrust of marketing higher-risk instruments to the unsophisticated and unwary. And the idea of promoting local-level ventures through social enterprise still poses an undoubted due diligence problem for funds which has left the Chancellor nonplussed. The Fightback Starts Here The general negativity really has to be stopped if this industry is to reach its

potential. This issue of EIS Magazine features a rallying call from Paul Wilson, Chairman of IFA Magazine, for a campaign which can launch an entirely new direction in the way that EIS, SEIS, VCT and BPR are presented. What does that mean? It means working together to draw up a set of positive marketing principles that sees advisers focusing on the social need and not the tax breaks. It means a wholesale repositioning of the industry in the eyes not just of the media but the public who trust them. And it means ditching the populist, negative messages coming down from Downing Street. It means joining together and taking our campaign directly to the Treasury too. Paul Wilson’s clarion call on Page 6 sets the tone for we hope will be an exciting development. Stay tuned. Michael Wilson, Editor in Chief

A DIVERSITY OF GROWTH EIS / SEIS FUNDS – BROUGHT TO YOU BY INNVOTEC AND ITS STRATEGIC PARTNERS Anglo Scientific EIS This is Innvotec’s “flagship” Fund. This eighth annual EIS Fund from the Innvotec / Anglo Scientific collaboration is, by demand, now an “evergreen” fund that offers private investors all year round investment into fast emerging companies created and led by the well regarded, specialist and dedicated team of technology entrepreneurs, that is Anglo Scientific.

angloscientific

Anglo Scientific has built a portfolio, all EIS qualifying, of hugely promising companies, focused on delivering world class products based on the very best science, all of which should make a difference to peoples lives; investors have the opportunity to invest in a pre-identified portfolio of five or six of these companies, details of which are to be found in the Information Memorandum. C R E A TING SOLU TIONS

Performance across the earlier funds is impressive and is likely to remain so as the target companies are on a strong upward growth curve in both performance and value.

Startup Funding Club SEIS 2016 The third annual generalist SEIS Fund from the Innvotec / Startup Funding Club collaboration, the first two having been deployed across well-diversified portfolios, with forty companies having been invested in. Startup Funding Club is one of the most successful “boutiques” working with companies seeking seed and early-stage finance, especially those companies that own proprietary intellectual property (IP) capable of being exploited globally and whose founders possess the stamina and know-how to meet the challenges that lie ahead. The Startup Funding Club’s network ensures that opportunities are sourced from many of the UK’s best regarded “incubators and accelerators”. Whilst the portfolio will have a technology-bias, it will also include product based companies and those in the food sector. Integral to the success of the Fund is a mentoring programme in support of the entrepreneurs and a co-investment policy that sees the Fund investing alongside business angels.

Odyssey Mission SEIS UK based private investors have an opportunity to invest in the Odyssey Mission SEIS Fund, a novel portfolio of early stage businesses led by Asian Entrepreneurs. Investors have the prospect of strong capital appreciation whilst helping an “affinity group” renowned for both ability and commitment. The Fund is focused on providing start-up /early stage funding and mentoring support to the best of the next generation of Asian graduate entrepreneurs that wish to build their businesses in the entrepreneurial-friendly United Kingdom, some of whom will require a Tier 1 graduate entrepreneur visa so to do. The SEIS Fund is the first step in the Innvotec / Startup Funding Club inspired Odyssey Mission project to encourage cross fertilization of entrepreneurism between the UK and the Indian sub-continent.

OION SEIS 2016 The OION SEIS Fund is the second Innvotec managed growth fund in association with Oxford Innovation Opportunities Network (OION). The Fund offers private investors an opportunity to invest in a growth portfolio of early stage businesses identified by OION through its UK wide affiliated network of business and innovation centres and its associated business angel networks. The companies that will form the OION SEIS Fund will be from across the UK and will use the proceeds of investment to advance them on their business growth curve. The Fund benefits from the participation of Oxford Investment Opportunities Network (OION) in generating quality deal flow and as with all Innvotec managed SEIS Funds the entrepreneurs will be supported by the provision of experienced mentors.

FinTech SEIS 2016 Another fund from the Innvotec/ Startup Funding Club association, with FinTech Circle as the provider of sector expertise, and the first dedicated to investment in aspiring UK companies operating in the financial technology sector. The global financial services industry is currently experiencing a wave of innovation which is starting to shake up decades of status quo. A large number of “newcomers” are developing products and services that are disrupting traditional activities such as foreign exchange, payments, asset management, insurance and even developing new forms of currencies. Companies within the FinTech SEIS Fund will benefit from the complimentary knowledge and expertise of the parties involved.

“And other funds to follow” For full details on any of the above EIS / SEIS Funds or any other information please contact Innvotec on:

Tel: +44 (0) 20 7630 6990

Email: info@innvotec.co.uk

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Web: www.innvotec.co.uk

Issued and approved by Innvotec Limited, Business Design Centre, Suite 310, 52 Upper Street, Islington, London, N1 0QH. Innvotec Limited is a registered company in England & Wales. Registration Number: 2030086 Innvotec Limited is Authorised and regulated by the Financial Conduct Authority.

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Changing the narrative Paul Wilson, Chairman of IFA Magazine and EIS Magazine, believes the time is right for a new way of thinking about EIS, BPR and VCT schemes. Or rather, a very old one

There was a time, not so long ago, when the message being broadcast to financial advisers about taxefficient investment vehicles like EIS, VCT and BPR schemes was primarily – well - that they were tax-efficient. And that, in return for providing much-needed risk capital for start-up and fledgling companies which could probably come from no-one else but wealthier investors, these vehicles could offer hardpressed taxpayers a range of tax concessions which could hardly be rivalled anywhere else. You’ll have noticed that a few things have changed over the last few years. The Treasury has been reining in the scope for some forms of EIS investments, while redefining the boundaries for others. HMRC has been making headlines of a less benevolentsounding kind with regard to certain forms of EIS schemes – at one point, more than 800 were being investigated for potential rule breaches. And all the time, the media was being fed lurid stories about what Jimmy Carr and others were being encouraged to do in the name of tax optimisation. From the Budget speeches to the humble income tax forms, the flow of negative news about tax efficient investments has been unstoppable.

A New Initiative EIS Magazine thinks this is all taking an unfortunate direction. More to the point, however, it’s showing up just how very far away we’ve moved from the original reasons for investing in EIS and VCT funds – and for their 1980s predecessors, the Business Expansion Schemes. When you get down to it, today’s alternative investment vehicles

EIS Magazine · March 2016

are still about fostering small and up-coming businesses. And to this end, EIS Magazine is now co-ordinating an industrywide campaign to reboot the popular assumptions about alternative investments. And, in the process, to impress upon our political masters the need to stop giving EIS, VCT and the rest such a hard time.

Why the Old Way Has to Go You can understand why the Jimmy Carr stories hit such a popular vein and why they became such a headache, both for alternative fund advisers and for the advisers who work with them. At a recessionary time when the public’s income was under daily pressure, stories like these about a devious minority were always likely to sell newspapers. But, seen as a wider process, it forms part of a bigger agenda around blurring the traditional boundary markers that have demarcated the

There is a tremendous societal benefit when small companies break through the fledgling barrier and grow.

frontier between tax avoidance (legal) and tax evasion (illegal). The emergence of what the Treasury now calls aggressive tax avoidance is like a dirty bomb which taints everyone who is perceived to be standing anywhere

near it. Every selfassessment income tax form now requires the up-front declaration of any tax avoidance scheme (and even potential avoidance schemes) that will flag up in advance the fact that the client is being competently advised in the spirit of the old Duke of Westminster v Inland Revenue decision from 1936. We’re sure you’ll remember that High Court ruling. It was the one that said that “every man is entitled to arrange his affairs so that the tax attaching under the appropriate act is less than it otherwise would be.” And it’s been a dead duck since 2013, when the General Anti-Abuse Rule (GAAR) was published – pledging, in the Treasury’s words, to target “only avoidance schemes that are clearly abusive. By ‘abusive schemes’, we mean schemes that can be seen from the outset to be simply highly contrived and artificial arrangements designed to enable people to get around the tax law and avoid paying tax.” This is loose and deliberately imprecise talk, and it is in no way

intended to frighten decent, honest investors who intend to abide carefully by the rules. But the trouble with mud is that it sticks in places where it has no business to. We need to reverse this trend â&#x20AC;&#x201C; or rather, to refocus our efforts on the wealth-building aspects which were where we originally came in.

We Need Fledgling Businesses to Grow There is a tremendous societal benefit when small companies break through the fledgling barrier and grow. The financial benefits are felt not just by the shareholders, but individual employees and their families, society at large which shares in corporate success through VAT, PAYE, NICs, corporation tax, pension provision, maternity and sickness pay and a host of other monetary contributions March 2016 Âˇ www.eismagazine.com

flowing from that corporate success for perhaps a generation or more. There are as many if not more nonmonetary benefits that can be outlined in support of the new and developing businesses as work brings harmony, aspiration and better life chances across our society. The case for the entire industry was made most eloquently in the foreword to the 2015 HM Treasury Report, Tax-advantaged venture capital schemes: response to the consultation on ensuring continued support for small and growing businesses, and to which many of the industry leaders contributed. “The government’s aim is to make Britain the best place in Europe to do business. The tax-advantaged venture capital schemes continue to be an important part of meeting this aim, providing valuable support to small and growing businesses seeking finance to develop and grow. To date they have supported over 22,000 businesses to gain access to finance, with over £17.5 billion of funding provided.” That is a record to be proud of – and, as an industry, we have played a very large part in delivering this. But taking it to the next level will necessitate a more Accentuate the Positive The way forward is to reposition the industry from top to bottom. To keep pressing the Government on the subject of much-needed tax incentives, but – much more importantly – to focus the clients’ attention (and our own) on optimising the investments themselves. If we can get across the message that alternative investments are first and foremost about getting society, industry and investors working together to meet the common goals of boosting economic growth across the country – and, only secondarily, about tax efficiency, then we’ll be on the road to a better and more sustainable relationship. A Working Group To this end, EIS Magazine has been extending its contacts into the EIS/

EIS Magazine · March 2016

BPR/VCT community with a view to achieving a better balance – and with it, hopefully, a better bulwark against the wholesale hijacking of the industry’s image. We need nothing less than a sector-wide initiative. Part of the Working Group’s remit will be to ensure that advisers have the very best materials that will focus on fund performance, rather than primarily on the tax incentives available. Another part will involve a lobbying thrust aimed at the Government, the media and intermediaries to ensure that a consistent, accurate and positive

We are developing a Working Group on EIS/BPR/VCT and it is designed to bring together likeminded individuals and specialists

message is delivered. This would not be just to potential investors, but also to the wider public at large. Finally, the Working Group aims to refine the industry’s marketing expertise so as to give advisers better ways of explaining EIS/ VCT to clients. By explaining the central functions of fund managers, their operational techniques and the best ways of choosing one, the whole marketing exercise can be enhanced and improved. This will mark something of a shift from the current tendency to focus first on the tax breaks available which is

normally the only training that intermediaries receive, inevitably distorting their perception of what drives the sector.

Changing the narrative from taking to contributing The EIS/VCT/BPR industry has been framed, both in the media and politically, as existing primarily to facilitate tax avoidance for the wealthy. Which is a scandal. In fact, as we know, the industry acts as a conduit through which investment from private individuals (who are encouraged and supplemented by the state to invest) can be directed to the very best opportunities available. This industry is reducing risk for investors, through rigorous selection of investment opportunities, careful due diligence and ongoing support for investment targets in the form of management input and further investment sourcing. This makes everything possible.

EISA viewpoint Sarah Wadham, Director General of EISA, on how tax efficiency has crept into the space that was once created for wealth creation. And what we can do about it

It is with pleasure that I write in support of EIS Magazine’s new initiative. I have read with interest the campaign’s objectives set out so clearly by Paul Wilson, about why we as an industry need to come together to help re-frame how enterprise investment schemes are viewed not just by the Government but across the wider media and by the general public. Despite the efforts of many individual fund management groups to educate and stimulate engagement with intermediaries, we find ourselves too frequently in a position of having to defend these tax incentives, which are as we all know are state sponsored, against claims that they are designed only for the very rich to offset tax, or only for those who can afford to take risks in their long-term investment strategies. We need to re-focus how they are represented. The positive benefits are rarely emphasised, yet the impact which these valuable and sensible investments have for brilliant entrepreneurs and fledgling businesses across the whole of the UK economy is immense. Many businesses which have the potential to grow and succeed are hampered only by the need for solid regular investment at an early stage. Re-focusing our efforts on providing a unified voice will help the industry communicate a different message. It’s one which I personally hope will help us to not only break through to the wider general public through marketing and continued training of intermediaries, but also to correct the way in which these schemes are represented at Government level. The EISA Diploma for IFAs and Wealth Managers is available on-line. In conjunction with this new EIS Magazine campaign, I hope that we will see an even greater take-up of the Diploma as a step to furthering the link between advisers and fund managers.

March 2016 · www.eismagazine.com

News Round up of the latest industry news

New EIS Managed Portfolio Seeded and Ready For Launch Seed EIS Platform, the multi-function platform which connects investors with tax efficient investment opportunities, is to launch its own, fully managed portfolio. Dan Rodwell, Managing Director of Seed EIS Platform, told EIS Magazine in an exclusive interview that the managed portfolio is already seeded and due to be launched in February. The Seed EIS Platform is a network of investors. They range across the whole spectrum of the investment community from sophisticated Investors and business angels, through to IFAs, funds and family offices. The network actively invests in start-up, early stage and growth businesses, mostly through tax efficient wrappers such as SEIS and EIS. The introduction of the managed portfolio is, said Rodwell, a natural and logical next step for the specialist platform which was originally established in 2012. Rodwell said the core portfolio will be made up of circa ten investments, selected from the current 30 companies on the platform. Another 30 are set

to go onto the platform shortly and hundreds more applicants wait in the wings. All are referred by platform investors, accelerators and accountants, and many other professionals. These are all then taken through the platforms’ onboarding process. Rodwell described the process which takes an applicant through to the platform and beyond: “Every applicant business, will be reviewed by our investment committee and then will select one of our

EIS Magazine · March 2016

due diligence tiers. If they are appropriate for our silver, or gold tiers, then we would consider them from a portfolio perspective as well as refer them to our numerous co-investment partners. The mandate is to build a diversified portfolio of SEIS and EIS qualifying investments, the investee companies are then selected.” Rodwell said that the introduction of the portfolio service was in part driven by the demand from IFAs who wanted a complete service, giving their own clients complete flexibility and insight when investing in tax efficient situations. “The advisers can go into the platform and select their own investments directly,” explained Rodwell, “or, they can invest into the portfolio, to benefit from retail discretionary permissions, and essentially back the manager to select the best diversified investments.” Four members of the firm sit on the investment committee and more will join as the firm expands. As for the firm’s track record with investments, Rodwell comments “…this will be our first managed portfolio service on the platform, but, if you look at every business which has received investment from us directly via the platform over the last three years, the portfolio valuation is currently just above three times investment capital.” Rodwell began telling advisers about the portfolio some months ago and said that the initial reaction was good. “We’ve already engaged directly with a number of IFAs and wealth managers on the platform,” he says, “and many of them told us that a managed portfolio option would complement the existing direct investment option.” “We’ve been working with advisers for a number of years, attempting to overcome the barriers they encounter investing in this space. And I think, right now, advisors are increasingly considering high growth investments for suitable clients. The stance of the treasury is clearly focusing EIS investment towards young companies in order to deliver growth and employment. The growth in equity crowdfunding has proven demand in the retail market for these investments. Our managed portfolio service provides access to such investments through a regulated structure, alongside the asset custody and administration provided by the platform.”

Wine Update - ‘Year of Stabilisation’

The team behind The Wine Enterprise Investment Scheme Limited, has just provided an update on The Wine Investment Fund (TWIF). Last year, said the team, did not provide the expected upturn expected. However, they believe that the fine wine market has stabilised after four years of falls. Indeed, 2015 proved to be the least volatile year in the history of the market’s two monthly indices (since 2001 for the Liv-ex 100 and 1993 for the Investables). These are measured by the standard deviation of monthly price movements and by the gap between the lowest and highest index value during the year. December 2015 was a particularly strong month said the team. All the main indices rose in December (Liv-ex 100 increased by +0.6% and the Liv-ex Investables by +0.4%), although, over the year as a whole the, 100 was slightly down (-0.1%) and the Investables slightly up (+1.4%).

Last month’s positive figures were in spite of a number of large auctions around the world which provided a level of additional supply which might have kept prices depressed. “After five difficult years we are, at The Wine Investment Fund, naturally cautious about prospects for 2016,” said TWIF Director Andrew della Casa. “Nevertheless, there are reasons to be optimistic. US interest rate rises bode well for the fine wine prices. In the market itself, the anomalies caused by China’s entry and withdrawal have disappeared. The general trajectory of prices – a flat 2015, after four years of falls – suggests that the next move may be up. Finally, Bordeaux has a strong vintage, the 2015s, to launch in the spring. After four poor en primeur campaigns, this years can do little harm to wider prices, and just might benefit them. The downside risks, therefore, seem limited. 2015 suggests that the current level of prices is sustainable, even when the wider environment is adverse. All in all, the outlook for the asset class appears positive.” “An investment in fine wine continues to make a very useful addition to a wider investment portfolio. Investors may also profit from the fiscal benefits of our EIS (enterprise investment scheme) (30% income tax relief and carry back provision, no CGT, no IHT and CGT deferral), thereby locking in substantial downside protection to their investment. The fundamentals of fine wine as an asset remain sound and we remain optimistic for the long term.” The Wine Enterprise Investment Scheme Limited was established for the benefit of UK income tax payers. It has all the attendant fiscal benefits (30% income tax relief and carry back provision, no CGT, no IHT, CGT deferral). It is not an unregulated collective investment scheme (UCIS).

Showjumping EIS Launched

A new EIS has been launched which focuses on the sport of showjumping. Lillybrook Showjumping Limited (LSL) enables high net worth individuals to enter the sports horses market, whilst benefiting from the EIS tax advantages. LSL points out that the UK is a world leader in sports horses which, together with racehorses, is estimated to be worth £8 billion to the British economy. The scheme, which plans to raise £2 million via minimum investments of £100,000, is open until 5 April 2016. In a statement, LSL said that: “Horses already competing at international championship level regularly change hands for £5 millon or more and a new showjumping EIS – Lillybrook Showjumping Limited (LSL) – has now been launched enabling high net worth individuals to tap into this lucrative market and benefit from considerable tax advantages. “What makes Lillybrook a stand-out EIS is the added value which comes from the horses being selected, trained and ridden by the professional team behind LSL – Team Mendoza. The LSL rider is one of the most exciting and talked about young talents in the sport at the moment – Jessica Mendoza – who last year played a key role in helping Britain to secure Olympic qualification for the British team and is now a real contender for Rio team selection. Jessica also finished 2015 on a high, with victory in one of the major classes at the prestigious London International Horse Show at Olympia last December and is now ranked 59 in the World at only 19 years of age. “An investment in LSL represents an opportunity to be involved in this glamorous arena, together with the potential for financial returns with mitigation of risk through diversification of investing into a number of horses. Eligible individuals benefit from 30% income tax relief, targeted tax free returns capital gains tax deferral and inheritance tax relief.” Jessica Mendoza is pictured below riding Spirit T in the Longines FEI Helsinki World Cup (Satu Pirinen).

March 2016 · www.eismagazine.com

EIS â&#x20AC;&#x201C; a changing environment Matt Penneycard, Head of Downing Ventures, explains how EIS has evolved as a vehicle for both investors and developing companies

PROFILE

Matt joined Downing in 2014 to head up Downing Ventures. After graduating from Durham University with a degree in Law, Matt started his career in venture capital as one of the early hires at Octopus Investments in 2002. After four years with Octopus and two years at Hermes Private Equity, Matt moved to the US in 2009 and co-founded DTI Capital, a technology focused VC investment firm based out of New York. Matt has been an active angel investor in the UK and US early-stage technology sectors.

EIS Magazine Âˇ March 2016

It is fairly well accepted these days that a vibrant start-up environment is good for the medium and longterm economic prospects of developed nations. Encouraging new companies to form, and then supporting their early growth, is deemed to have positive impacts on future rates of employment, tax receipts and standards of living. A crucial component of this equation is capital. External providers of debt and equity to support growing companies are essential to a healthy corporate ecosystem; without them, the fear is that innovation will find new homes in other jurisdictions. A Changing Environment When I was based in the US, investing in early-stage technology companies, the risk culture was completely different to that in my native UK, where I now invest in the same type of businesses. For various cultural and sociological reasons, American investors are more comfortable investing in early-stage, high risk companies. This is a large part of the reason that such a healthy market for angel and venture capital investment exists in the US, centered on Silicon Valley in California. As a result of that beneficial environment, most of the largest technology companies in the world were founded in the US - supported in those early days by US angel and venture capital investors: Google, Amazon, Microsoft, Paypal, eBay, Apple, Facebook, Oracle, Salesforce, and many, many more.

UK is Closing the Gap In the UK, we are rapidly becoming the second favourite choice, after the US, for the global market of young tech entrepreneurs who are looking to build the next generation of important companies. This is due in part to the Enterprise Investment Scheme, which

provides the now well-known tax incentives to encourage wealthy UK individuals to invest in companies with perhaps more risk than they would naturally feel comfortable with in the absence of tax breaks. One of the reasons that EIS is becoming more popular is because of the changes made to pension contribution ceilings, which are encouraging investors to seek out new tax-efficient instruments. However, an EIS investment into an early-stage company should always be more of an investment-led decision than a tax-led one. The risk of failure to the underlying companies is high, and, even taking loss-relief into account, the overall financial exposure is still a risk, albeit a reduced one. Company Development is Changing Too However, the good news is that the typical life-cycle for a start-up technology company is now very different from how it was, say, ten years ago. Creative destruction is the economic theory that explains why a DVD player which cost £1,000 when

One of the reasons that EIS is becoming more popular is because of the changes made to pension contributions

that technology was first publicly available can now be bought for £30. This same principle is widely applicable to the underlying infrastructure of the technology market. Building a software company in 2000 was a very expensive exercise. Anecdotally, it would take over £10 million of investment capital to bring a software product to market in those days. These days, however, the same process can be achieved at about 1% of that cost. Companies no longer need

expensive capital equipment, such as server rooms, when most technology infrastructure can be “rented” on Software-as-a-Service (“SaaS”) basis like Amazon Web Services or Microsoft Azure. All of this means that investors need to risk significantly less capital on an early-stage idea to test the viability of the product and the market opportunity. EIS tax reliefs perhaps provide the final necessary nudge for investors in the UK to take that plunge and support tomorrow’s Google or Apple or Facebook. In early-stage investing, the EIS reliefs act as a risk mitigation tool, or “wrapper”, that might not be a reason for making the investment in the first place, but which presents a highly effective way to reduce the financial risk of committing to these exciting young companies.

Diversification For investors interested in committing capital to this part of the market, even when using EIS, it is also important to spread the risk further by building a portfolio of such investments which means that they can afford to lose a percentage of the overall portfolio without undue pain. The ideal portfolio construction of earlystage EIS investments is probably ten companies. Venture capitalists will tell you that a portfolio of ten such positions is likely, on average, to yield three complete write-offs, five so-so investments that return capital or thereabouts, and two home-run winners that generate almost all of the return on the portfolio. On a personal note, since returning the UK market in 2014, I have been amazed and happy to find such a vibrant early-stage technology market into which to invest. This is in no small part due to the EIS reliefs available to UK investors, and it’s something I am thankful for.

March 2016 · www.eismagazine.com

2016: a new era for EIS/VCT Peter Schwabach, Managing Partner of Cyrus Investment Management, explains how the new Finance Act marks a welcome return The 2015 Finance Act finally put an end to the era of Tax “driven” investments that have dominated the EIS and VCT markets and have ushered in a new era where investors are being offered “risk” investments in new or established businesses where risk is mitigated by specific tax advantages for the investor. Whilst all changes can be unsettling - and this change has certainly shaken the market - I welcome it as a long overdue and very welcome development for both investors and managers alike.

EIS Magazine · March 2016

A Loss of the Original Emphasis The aim of the original Enterprise Investment Scheme legislation was enshrined in the word “Enterprise”; but over the years that focus became sadly lost in the drive for ever greater tax efficiency in the structuring of these products. Whilst the EIS and VCT schemes continued to deliver billions of pounds of much needed capital to the SME market, the money was increasingly diverted from “Enterprise” endeavours into the ownership and retention by investors of passive tax efficient assets.

Inexorably, investors’ aspirations were lowered into the retention of their capital rather than the increase in value of their capital. And the effects of this were twofold. Firstly, SME businesses that required risk capital for growth were overlooked as EIS and VCT funds were channelled into predominantly “ no growth “ tax efficient structures. And secondly, the inexorable focus on tax efficiency and the structuring of ever more complicated products meant that, when a handful of those products were deemed to be tax avoidance by HMRC, the whole market’s reputation

became tainted - leaving many investors significantly out of pocket and wary of the schemes.

A Return to First Principles The new rules establish a new playing field which I believe is to benefit of all parties. Firstly, because the new legislation firmly endorses those managers who have always sought to combine capital growth with tax efficiency and formally puts them on a par with the managers

We see a very clear benefit to both central government and tax payers in the new Finance Act

of non EIS or VCT funds who are ranked by the investment returns they deliver, rather than by the tax savings they generate. And secondly, because businesses and enterprises that were previously overlooked by the EIS and VCT Industry - notwithstanding the strength of their products and management - are now able to benefit from this low cost capital. Managers’ interests are now more fully aligned with those of their investors: an exit at a premium triggers a tax fee capital gain for the investor but also a meaningful performance fee for the manager if they have passed a returns hurdle. This can only be to the good of all parties.

Our Own Experience When Cyrus Investment Management was launched in 2014 as an EIS fund manager, the new legislation had not yet been drafted. Notwithstanding the imminent change in the law, I and my two co- founders were committed to building an investment management firm investing in unquoted SMEs where success was defined by the growth in value of the businesses at exit and not in terms of the tax-efficient structuring of the products. Our focus: British precision engineering companies that we turn around and aggregate for exit after 3 years. As we are ‘returns-driven’, the new legislation endorses a strategy we are already committed to. If HMRC should vary the rules on EIS or VCT at some point in the future, it will have no effect on the returns for our investors merely on the proportion of taxes they pay on them. We see a very clear benefit to both central government and taxpayers in the new Finance Act. In return for investing in smaller unquoted trading companies, central government ensures low cost capital can help those businesses traditionally unable to access capital whilst investors who invest in those businesses through specialist managers can make tax free profits. We think it’s a step in the right direction.

PROFILE

Peter Schwabach, Managing Partner of CIM is one of the UK’s leading infrastructure funders. A former Goldman Sachs investment banker in fixed income sales, he established Thurlestone Capital in 2010 as a funder and developer of large scale renewable energy projects. In 2012 Thurlestone funded the £1.3bn Dudgeon off-shore wind farm and between 2011 and 2014 became the UK’s leading funder and developer of UK local authority roof-top solar projects with multi-million pound installations in Leicester and Liverpool. Thurlestone has worked

closely with local government on providing EV infrastructure (Westminster City Council) and with central government (OLEV) where Peter was instrumental in securing the current £38m in EV grant funding. As a specialist in tax efficient funding solutions he established the renewable energy VCT funds at Hazel Capital which raised a total of £45m. Peter is a graduate of Oriel College Oxford and was educated at St. Paul’s School in London. He is a patron of the Rothschild Archive and a benefactor of Oriel College.

March 2016 · www.eismagazine.com

VCT rule changes? No problem Annabel Brodie-Smith, Communications Director, Association of Investment Companies, tells EIS Magazine that the new regime holds no terrors

Incredibly, Venture Capital Trusts (VCTs) are now entering their twenty first year - and they’re still as relevant to advisers and investors today as they have ever been. Perhaps even more so, as the market increasingly recognises these schemes as being valuable investments in their own right rather than just simply as tax planning vehicles as has so often been the case to date.

EIS Magazine · March 2016

Return on Investment As Annabel Brodie-Smith, Communications Director, Association of Investment Companies, points out, “2015 proved sluggish for established markets in the UK with the FTSE All Share index rising just 1%, while the FTSE 100 fell by 1%. By comparison, the VCT sector as a whole showed gains of 9% on average over the year - nearly double the 5% returns generated by the average investment company.” “The long-term results remain positive too, with the VCT sector, on average, up 34% over three years, 58% over five years and 86% over ten years. But, while the VCT Specialist: Technology sector was the year’s top performing VCT sector up 26%, it’s interesting to note that three out of the top five VCT member companies in 2015 were in the VCT Generalist sector, which was up 10% on average. “VCTs invest in small companies which are high risk, although they can grow into household names in the future. VCTs don’t just provide finance to their investee companies but also provide advice and often sit on investee company boards. They help investee companies structure themselves for growth, and often this involves finding the right directors and employees for the business. “As advisers know, VCTs are high risk, so the Government offers generous tax breaks to compensate for the risks involved. These include 30% up front tax relief on new VCT shares if they are held for five years

and tax free dividends, as well as being capital gains tax free at disposal. At a time when yield is much in demand, VCTs have generous yields, with the VCT average yield being 8.6%* at 31 December 2015. Yields vary according to the sector, with the Generalist VCT sector yielding on average of

Last year’s pensions legislation changes have led to increased interest in VCTs

8.9% and the AIM Quoted VCT sector yielding on average 5.7% at the end of December 2015. Pension Changes Boosting Demand “Last year’s pensions legislation changes have led to increased interest in VCTs,” she says. “The anticipated forthcoming pension changes in April including the reduced lifetime limit and the reduced annual limit for higher earners are likely to lead to increased demand.” Eliot Kaye, Director of Puma Investments, managers of the Puma VCTs, agrees. “The much anticipated uptick in demand for VCTs following last year’s pension reforms is coming to fruition. Savers looking to mitigate sizeable income tax bills on their pensions are helping to drive appetite for our current VCT offering, with fundraising up on last year. Combined with the continual need for funding into the SME sector, the future holds exciting prospects for the VCT industry.”

A Changing Landscape 2015 was also significant for VCTs in that new rules were introduced which will limit the amount VCTs can invest in companies, while also ensuring that most VCT investment is directed towards younger companies. Fortunately, however, the VCT industry is very familiar with rule changes, and it has always adapted swiftly to change. The impact of the rule changes will vary depending on the VCTs’ strategy, according to Stuart Veale, Managing Partner of Beringea LLC and Manager of ProVen VCTs (which are in the Generalist VCT sector). “The changes to the regulations will have minimal impact on the ProVen VCTs, whose qualifying investment strategy has for the last seven years been focused exclusively on growth capital investing,” he told us. “ProVen VCTs will continue to seek out UK SMEs with potential for rapid growth and provide them with the investment and management support they need to be able to take full advantage of their potential.” Over at the Amati AIM Quoted VCTs, Dr Paul Jourdan, CEO of Amati Global

Investors, explains that the group anticipated a six month period of hiatus over the introduction of these rule changes. But, he says, “we are confident that AIM will continue to be the destination for many of the best growth companies in the UK - and that we will be able to continue to invest in them early on through the VCTs, albeit that some of the deals we would

It’s clear that VCTs can play a vital role within clients’ investment portfolios

have been able to do previously will no longer be available.” “There will also be situations where the VCTs can invest in a deal, but where the amount they can contribute collectively will be much reduced.” He expects once the detailed workings of the new rules are understood, “normal VCT and EIS activity will resume on AIM by the autumn.” Will the rule changes affect investors? Paul Latham, Managing Director of Octopus VCTs, is confident. “Investors themselves are unlikely

+26%

to feel much of an impact from the changes,” he says, “because the legislation does not materially affect the way VCTs work. A VCT looks no different to investors - and, crucially, the new rules don’t apply to investments that have already been made.” Interestingly, VCT fund-raising for the current tax year is broadly similar to last year’s strong levels, demonstrating confidence in the industry. From 6 April 2015 to the end of January 2016, VCTs have raised around £150 million, compared with around £165 million in the equivalent time period from 6 April 2014 to the end of January 2015. As Brodie- Smith concludes: “It’s clear that VCTs can play a vital role within clients’ investment portfolios; that they have generally performed well; and that they can have attractive yields too.” By focusing more on the underlying benefits of the schemes as attractive and relevant investments in their own right, this looks like a sector with a strong future ahead.

TECHNOLOGY SECTOR

SECTOR PERFORMANCE: TOTAL RETURN

+9%

+1%

VCT SECTOR

FTSE ALL SHARE INDEX

+10%

–1%

FTSE 100

VCT GENERALIST

March 2016 · www.eismagazine.com

SMEs still need us Tony Mudd, Divisional Director for Development and Technical Consultancy at SJP, expands the argument for investment

PROFILE Tony Mudd – Divisional Director, Development and Technical Consultancy at St James’s Place Wealth Management. Tony has spent over 21 years at St James’s Place within the Business Development division in a wide variety of roles. Having run the Tax and Trusts Division for a number of years, with principal responsibility for estate planning, trustee investments and the development of products and services, he now has primary responsibility for Protection, Small Business Market, Tax Advantage Investments and Long Term Care. He remains the senior technician within St James’s Place Wealth Management, regularly contributes articles in both the industry and national press and is a member of the EISA Financial Planning committee.

There’s never been any doubt that small and medium-sized businesses are without doubt the lifeblood of the UK economy and appropriate levels of finance. And that debt or equity is critical to their development and continued success. It is little surprise therefore that, as a result, successive governments have been keen to encourage investments into this vital sector of the economy. The current EIS marketplace is estimated to be worth around £1.5bn (HMRC figures provided for 2013/14), and, as we know, it’s driven by a

EIS Magazine · March 2016

‘perfect storm’ synergy of investors looking for tax efficient investment options, ways to access a section of UK businesses that will drive growth over the next few decades and successive governments that want to encourage such behaviour. Small wonder, then, that with a constant flow of new provider entrants into the market, with variations of offerings, asset classes and risk profiles, such products now sit firmly in the retail space. Although undoubtedly in the higher risk category from both a pure investments and liquidity perspective,

EIS investments are deservedly on every advisor’s agenda for clients in the high net worth and indeed mass affluent sectors. While the tax incentives have changed over the years, they have retained their capacity to de-risk the investment. And yet, as Paul Wilson explains in this issue, we have an environment where the term ‘tax avoidance’ has become synonymous with tax evasion - and even ‘tax mitigation’, is a term to be handled with care. Either way, it would be a mistake to view or promote these

schemes purely for the tax benefits they provide.

Punching Above Their Weight Above all, these are investments in unquoted trading companies companies which have been a constant engine of economic growth in recent years. While they make up less than 1% of businesses registered in the UK, they have been consistently generating around 4,500 new jobs every week. To put this contribution into perspective, that is three times the number of jobs created by the FTSE100 in the same period. As well

It is no surprise that the government continues to take an increased interest in this marketplace

as creating more than a third of all jobs created in 2014, such businesses also accounted for almost a fifth of the UK economic growth. Perhaps it is also of little surprise that such businesses are currently more confident in their future economic prospects than other types of businesses? With such confidence a key determinant of capital spending, they are also likely to continue to punch above their weight when it comes to investing in the UK, as well as job creation and economic prosperity. Given the value of such businesses to the UK economy, it is no surprise that the government continues to take an increased interest in this marketplace - as indeed does the EU, given that the tax reliefs provided for EIS fall under EU rules about state aid. So

we’ve been seeing consistent targeted intervention from the government that has excluded solar energy, reserve power, and, most recently, all energy generating infrastructure.

Re-Stating the Case for EIS You could argue that, the 2015 Finance Act marks a continuation of this tinkering process - and in some ways, we’ll agree, the industry only has itself to blame. As with many facets of the financial industry, particularly where tax incentives are available, there will always be those that decide to push the envelope. Or, in this case, to develop products that give the tax benefits without all of the normal associated risks – confirming to the letter rather than the spirit of the law. Seen like this, the problem seems clear. Because, in reality, the Treasury’s own “direction of travel” is also self-evident. The amendments in the Finance Act to ITA2007 S174 (now contained in the new S174 (2)), require funds raised through EIS to be used for business growth and development. But in itself they add little to our understanding, and they are not a strong enough statement. The Treasury’s clearly stated view is that funds raised through EIS should be for situations where normal UK private equity would not be readily available. And that does, I suggest, make it clear that the government is genuinely trying to address the equity gap and direct EIS funds to genuine entrepreneurs. It remains the case that the biggest reasons for business failures is the

96% of Advisers Stress Tax Mitigation Issues Income tax relief is still the most frequently-cited reason for recommending EIS to clients, according to a survey published in February by the Enterprise Investment Scheme Association. Fully 96% of the 297 advisers polled by Intelligent Partnership on behalf of the EISA said that income tax relief was among their top three reasons for recommending EIS. And 76% named inheritance tax mitigation as a key motivator. “It’s no surprise that advisers are expecting to invest more in EIS this year, as changes to our pension system have strengthened the investment case for tax-efficient investments like EIS,” said IP’s research director

lack of cash. And, while debt finance is (and remains) an important funding source, debt does not come without its own problems. Let’s say it again. EIS has a significant part to play in providing alternate equity finance. It provides a good balance in terms of value and returns for investors, for the Treasury and for the businesses themselves. And it is time to get behind these small businesses. Many are thriving already, but EISs have the capacity to do much more and, within this parameter, advisers have an essential role to play.

Daniel Kiernan. But, he added: “What’s perhaps more unexpected is the number of advisers who are utilising EIS for their IHT benefits…. “Perhaps this reflects the financial planning needs of clients who are concerned about passing on their wealth, but who don’t want to give us control of their assets or sacrifice any potential growth just yet.” The continued dominance of the tax issue was apparent from the frequency with which lowered pension limits and a perceived threat to higher-rate tax relief were mentioned by interviewees. 61% also said that they expected their use of EIS in client portfolios to increase within the next 12 months – compared with just 46% in the previous study.

March 2016 · www.eismagazine.com

INFORMATION

MEMORANDUM For further information, please contact

Nicola Johnston Head of Finance nicolajohnston@chfmedia.com +44 (0)845 512 1000

www.chfenterprises.co.uk i

EIS Magazine 路 March 2016

Open Offers Highlighting some of the key tax efficient investment offerings currently available to IFAs Investment Key:

SEIS

EIS Open

01/08/2013

N/A

Amount to be Raised: Uncapped

EIS

VCT

SITR

IHT

BPR

Deepbridge - Technology Growth EIS The Deepbridge Technology Growth EIS represents an opportunity for investors to participate in a portfolio of actively-managed growth-stage technology companies, taking advantage of the potential tax benefits available under the Enterprise Investment Scheme. The Deepbridge Technology Growth EIS is a diversified portfolio of actively managed high-growth companies seeking commercialisation funding. The Deepbridge EIS invests in companies that have a proven technology, clear intellectual property and are operating in a high growth/high value market sector. Focused on investing in high growth companies that are seeking to commercialise and expand, specifically in three sectors: • Energy & resource innovation; • Medical technology • IT-based technology

T. 01244 746000 www.deepbridgecapital.com

EIS Open

01/06/2015

05/04/16

Amount to be Raised: £2m Minimum Investment: £10,000

The target return for the Deepbridge Technology Growth EIS 22.9% p.a. over a minimum of three years; representing mid-case capital growth of 160p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge EIS is entirely investor-fee free at point of investment.

Lillybrook Showjumping EIS A unique opportunity, in an Olympic year, for certified high net worth individuals and self-certified sophisticated investors to invest in a portfolio of high quality showjumping horses possessing World Championship or Olympic competition potential. Britain has long been a world leader in sports horses which (together with racehorses) is estimated to be worth £8 billion to the economy with horses on the international showjumping championship circuit regularly changing hands for millions of pounds.

T. 01242 210918 E. tony@mountainconsulting.co.uk www.lillybrookshowjumping.co.uk

An investment in LSL represents an opportunity to be involved in this glamorous arena, together with the potential for financial returns with mitigation of risk through diversification of investing into a number of horses.

Eligible individuals benefit from 30% income tax relief, targeted tax free returns , capital gains tax deferral and inheritance tax relief. March 2016 · www.eismagazine.com

EIS Open

January 2014

Quarterly

Amount to be Raised: Unlimited

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

EIS Open

Now

Evergreen

Amount to be Raised: Unlimited Min Investment: £25,000

PUMA INVESTMENTS - PUMA EIS Puma EIS employs an investment strategy similar to that successfully deployed by the Puma VCTs and aims to provide investors with downside protection in a carefully managed portfolio. Building on Puma’s established track record in tax efficient investments, Puma EIS targets asset-backed businesses aiming to provide downside protection for investors through a portfolio exposure to HMRC pre-approved companies.

Successful Deployment: Puma EIS was the largest fundraise of any new EIS with a capital preservation strategy launched in 2013/14 tax year. All funds raised were successfully deployed into companies with HMRC Advanced Assurance before the end of the tax year end. Allotment Dates: The discretionary management service has no fixed closing date. Puma EIS intends to make quarterly allotments with an allotment shortly in advance of the tax year each year. Strong Track Record: Building on the market leading track record of the Puma VCTs which operate a similar asset-backed investment strategy. Realisations: It is envisaged that investments in Qualifying Companies will be realised within 3 to 5 years. Investment Size: Minimum subscription is £25,000 with no upper limit.

Triple Point EIS Service The Triple Point EIS Service targets investments across a range of sectors including infrastructure and construction.

The investment strategy has been shaped by our extensive and successful experience managing over £100m of EIS qualifying investments to date, where we adopt a cautious and meticulous approach to managing investors’ capital without losing the ability to capture growth opportunities.

The investment strategy is built around identifying the right opportunity, using our rigorous risk management processes. This focuses on selecting companies for funding which meet our key criteria for capital security and transparent exit strategies. We target high quality, simple investments and cash generative businesses; such as those in the current pipeline of Combined Heat and Power, which qualify for EIS tax benefits and target returns of £1.10 to £1.15 per share. In this tax year it is expected that shares will be allotted through the EIS Service into 2 or more EIS companies that, on financial close, are looking to either construct new facilities or refurbish and extend existing energy centres, incorporating combined heat and power plants (“CHPs”).

T. 020 7201 8990 E. contact@triplepoint.co.uk www.triplepoint.co.uk

EIS Magazine · March 2016

The Triple Point EIS targets opportunities that are designed to facilitate an exit for investors after three years, which we have a excellent track record in achieving. Please contact the sales team for more information.

Investments can be illiquid and the value of your investment is not guaranteed.

EIS Open

08/01/16

24/03/16

Amount to be Raised: £20m

Octopus Enterprise Investment Scheme – final opportunity to invest in companies that generate energy The Octopus Enterprise Investment Scheme (EIS) is offering investors a final opportunity to invest in companies that generate energy before Government changes to EIS rules come into effect in April 2016. Octopus EIS is open for investment until 24 March 2016 (17 March is the last day on which we can receive cheques). However, we may close sooner if we reach capacity. Why Octopus EIS?

• Energy expertise: We’ve invested over £1 billion in energy companies. Octopus EIS is expected to invest in energy companies that have the right characteristics for targeting capital preservation. • Tax reliefs: Up to 30% income tax relief, the opportunity to defer capital gains tax and 100% relief from inheritance tax so long as required holding periods are met.

• Deferred charges: The annual management charges on Octopus EIS are deferred until after the minimum three-year holding period, and are only taken once investors have had the opportunity to have their capital returned. Understanding the risks

T. 0800 316 2067 E.salessupport@octopusinvestments.com www.octopusinvestments.com/eis

EIS Open

Now

Evergreen

Minimum investment: £25,000

T. 020 7361 0212 E. fundenquiries@mmcventures.com www.mmcventures.com

There are a number of risks that potential investors need to think about carefully when considering investing in EIS products. The value of your investment could fall or rise and you may not get back the full amount invested. Tax treatment depends on individual circumstances and may change. Any claimable tax reliefs will depend on companies maintaining their EIS-qualifying status. Smaller company shares are often more volatile than those listed on the main market of the London Stock Exchange and can be harder to sell.

MMC Ventures - EIS Fund The MMC Ventures EIS Fund offers investors exposure to a portfolio of hard-toaccess fast growing private companies, combing real capital upside potential with generous EIS tax reliefs.

Founded in 2000, MMC is regularly rated as one of the top 5 most active venture investors in the UK, investing circa £20 million per annum in a combination of new deals and follow-on capital for existing portfolio companies. An investor in the MMC EIS Fund can expect a portfolio of 8-12 companies within 12-15 months of subscribing. The MMC EIS Fund is categorised as a generalist product but they have a clear investment focus on technology-enabled sectors where the UK is a world leader - particularly financial and business services, business software, digital media and consumer internet. MMC’s fundamental approach is to invest on the commercial merits of each transaction, viewing the EIS tax benefits as highly desirable but not the reason to invest. This approach is reinforced by their policy of co-investing their EIS Fund alongside other funds they manage that do not qualify for EIS tax relief.

March 2016 · www.eismagazine.com

EIS Open

Now

N/A

Amount to be Raised: £5m

Symvan Technology EIS Fund Symvan’s funding strategy embodies the continuity of our philosophy: The greatest potential gains in venture capital investing rest with the successful earlystage investor. Symvan Capital is currently marketing the Symvan Technology EIS Fund. The aim of the Fund is to focus investment in businesses which have established plans and management teams, have demonstrated growth potential with strong commercial opportunities, and are planning to exit within five years. Symvan’s ‘life-cycle’ approach to EIS investing mitigates early-stage risk of the investment proposition. The Fund is focussed on ‘post-seed’ financing, where companies may have already raised early-stage funding, some possibly under SEIS and having achieved milestone developments since then.

T. 020 3011 5095/5096 E. info@symvancapital.com www.symvancapital.com

EIS Open

Evergreen

Oxford Capital Infrastructure EIS

Min Investment: £25,000

Through the Oxford Capital Infrastructure EIS, investors can benefit from EIS tax advantages including 30% income tax relief and tax-free gains, by acquiring shares in one or more EIS-qualifying companies that own and operate infrastructure assets.

T. 01865 860760

Shares are normally purchased for the investor within 4-6 weeks of submission of their subscription. EIS3 certificates are available on average 12 months after purchase of shares. Oxford Capital will aim to sell the shares to a strategic acquirer and return capital to investors after the fourth year of the investment.

Amount to be Raised: No Max

E. investment@oxcp.com www.oxcp.com

Symvan has seeded the investee company and raised money through our angel investor network, thus ensuring that the Fund invests in companies that Symvan knows well through board representation, have reliable corporate governance and are exposed to a broad range of sectors. Investors are able to claim relief on the full amount of their subscription as there are no investor fees at the time of investment.

EIS Magazine · March 2016

Oxford Capital aims to invest in companies capable of generating stable revenues through long-term contracts, producing returns of £1.10-£1.15 per £1 invested (net of applicable fees and not including the impact of EIS income tax relief).

EIS Open

Evergreen

Amount to be Raised: No Max Min Investment: £25,000

T. 01865 860760 E. investment@oxcp.com

Oxford Capital Growth EIS Through the Oxford Capital Growth EIS, investors can build a portfolio of shares in 6-10 small or medium-sized companies over a period of roughly 12 months. Each investment should be eligible for EIS reliefs, including 30% income tax relief and taxfree gains. Investee companies could be operating in a wide range of industries – past investments have spanned sectors from digital marketing to sustainable agriculture – but they will all be businesses that have potential to grow rapidly.

Oxford Capital works closely with the investee companies, helping to accelerate commercial development with the aim of achieving a profitable exit, usually through either a trade sale or a stock market listing. The Oxford Capital Growth EIS targets a return of 2.5x the amount invested (net of applicable fees and including the impact of EIS income tax relief), aiming to return the majority of proceeds 4-6 years after initial investment.

www.oxcp.com

EIS Open

Evergreen

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

Amersham Investment Management - ACDC EIS Fund The ACDC Fund is an EIS “follow-on” fund for companies that have previously received investment, subject to due diligence, from either a EIS/VC investment or SEIS investment round. ACDC is a generalist technology fund with an emphasis on technologies which have their focus in a particular sector rather than companies that are generalists themselves, as potential investments, companies are currently being reviewed in the following sectors Ad-tech; Fin-tech, Security-tech, Health & Pharma.

T. 020 7734 7524 E. investment@amim.co.uk www.amim.co.uk

On raising the Fund; ACDC will look to invest in tranches into 3-7 companies across 3-5 sectors where the expected investment size will be between £350k £1.8m from the £5m fund.

March 2016 · www.eismagazine.com

EIS Open

Now

Evergreen

Minimum Subscription: £10,000

Rockpool’s EIS Portfolio Service Rockpool’s EIS Portfolio Service offers an alternative to traditional EIS funds as all investment is direct into quality private companies. Investors can choose the Managed service and build a portfolio of EIS qualifying private company investments to suit their investment strategy and required diversity. The Self-select service allows investors to build a bespoke portfolio of private company investments.

Two strategies are available: Growth and Asset-rich. Asset-rich sectors include crematorium operation, construction project delivery, managed storage services and children’s nurseries. T. 0207 015 2150 E. team@rockpool.uk.com www.rockpool.uk.com

EIS Open

December 2015

At Capacity

Amount to be Raised: £20m

Rockpool’s model offers full transparency and control with opportunities to meet the management, regular updates on the investment performance and an on-line portal for latest valuations. ∞ Managed service – Minimum application of £10,000 with a minimum investment of £2,500 per company. ∞ Self-select - Minimum investment of £10,000 per company.

TIME Investments TIME:EIS TIME:EIS invests in shipping, offering investors an asset backed opportunity in a global industry that has been established for thousands of years. Shipping is a sector recently identified by the Government as vital to the UK economy and one it is keen to support.

Targeting a base case return of £1.27 in addition to the 30p initial income tax relief. This non-contentious business model makes TIME:EIS an excellent fit within the EIS regulations – which is why advance assurance from HM Revenue & Customs has already been granted. TIME:EIS has an initial capacity of £20 million which will be split across four tranches. Alongside our specialist EIS team, support is provided by third parties with substantial experience in shipping. TIME has used its skills in structuring EIS deals to mitigate risks where possible. This includes:

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

EIS Magazine · March 2016

• Owning the asset (the ship) which has a resale value; • Buying each ship without the use of debt; • A focus on long term charters to provide a more predictable revenue stream; • Hedging strategy for foreign currency; • Advance assurance from HMRC has been granted for EIS qualification.

EIS

SEIS

Open

Evergreen

Amount to be Raised: No Max Minimum Investment: £5,000

Seed EIS Platform - Crowdfunding for Advisers Seed EIS Platform is a multi-function platform which works with intermediaries to provide SEIS and EIS eligible single company investments. Offering direct investment or a managed portfolio solution, the platform also acts as custodian, enabling centralised reporting and management of fees.

Founded in 2012 it has completed 40 investment rounds into 30 different businesses. The investment team has considerable experience across early stage venture capital, small cap equity, entrepreneurship and wealth management.

Seed EIS Platform provides a solution for advisers to maintain control of client assets and ensure investment suitability through our controlled deal flow, in contrast to direct to consumer crowdfunding offerings. We also facilitate adviser fees in a simple RDR compliant way. Our portfolio of investment opportunities, across a wide range of sectors and business stages have all undergone various levels of due diligence. T. +44 (0)20 7071 3945 E. enquiries@seedeisplatform.com www.seedeisplatform.com

EIS Open

04/01/16

SEIS Close

30/04/16

Amount to be Raised: £15m

Alongside this, we advise businesses on fundraising and HMRC process whilst assisting in structuring investments. This enables advisors to refer clients making private single-company investments, such as those into friends’ or family businesses. Advisors are also able to aggregate all existing tax assets (SEIS, EIS, VCT, IHT) within the platform.

Mercia Fund Management - Mercia Growth Fund 5 Mercia Growth Fund 5 is a tax efficient technology fund optimised to source, support and scale UK growth enterprise across key sectors in which deep expertise is held. The Fund aims to provide investors with access to a portfolio of high growth opportunities in pioneering technology driven businesses combined with a risk managed investment strategy and attractive tax advantages.

At the heart of the Fund strategy lies Mercia’s ‘Complete Capital’ model, designed to provide fledgling technology businesses with a single investment partner solution, in addition to a sector specialist investment team, proprietary deal flow sources including partnerships with 14 universities and a strategic focus on the Midlands, the North and Scotland. T. 0330 223 1430 E. talong@merciafund.co.uk www.merciafund.co.uk

March 2016 · www.eismagazine.com

EIS

SEIS

Open

January 2015

Evergreen

Amount to be Raised: Unlimited

T. +44 (0)845 512 1000 E. nicolajohnston@chfmedia.com www.chfenterprises.co.uk

EIS

SEIS

Open

January 2015

N/A

Amount to be Raised: £5m

T. 020 7873 2122 E. seis@jensonsolutions.com www.jensonfundingpartners.com

EIS Magazine · March 2016

CHF Enterprises CHF Enterprises Ltd (CHF) presents an exciting and unique opportunity for UK tax payers to invest in both SEIS and EIS qualifying shows and concepts, whilst also benefitting from risk mitigation in the form of seed and traditional EIS reliefs and Government backed Animation Tax Credits. The company has a strong and proven track record: over the past 40 years, Cosgrove Hall have produced iconic children’s programmes such as Danger Mouse, Postman Pat, Roary the Racing Car and others, and CHF has a multi BAFTA and International Emmy award winning creative team • One of its recent shows, Pip Ahoy! was funded via CHF’s own in-house EIS offering and is now on air on channel 5’s Milkshake every weekday for 5 years, to great media acclaim. The shows and concepts may have multiple revenue streams from Broadcast and License and Merchandising sales with unlimited investment returns. Shows are produced in the UK and should qualify for the Government’s Animation Tax Credits.

Jenson Funding Partners - SEIS & EIS Fund 3 We are pleased to follow-up our first two funds with a combined SEIS and EIS Fund (‘Fund 3’). Our offering allows investors to choose whether they want to invest solely via SEIS or EIS or to split their funds across SEIS and EIS investments. The Fund aims to target exciting new innovative and disruptive technologies to be nurtured alongside existing investment opportunities that require follow-on investment to fully exploit commercialization of a proven business model.

At Jenson we aim to offer these businesses far more than just funding. To date, we have actively advised entrepreneurs to re-evaluate business models, reduced projected costs and introduced potential executives, partners, customers and suppliers as part of the value added service we provide. Further we believe the addition of an experienced finance director to the management team of Investee Companies, even on a part-time basis, will enhance returns. This is why each investment is allocated a Jenson finance director a key differentiation between ourselves and other SEIS and EIS providers. The combined SEIS and EIS structure is designed to provide increased diversification as a portfolio investment. The balance between capital growth, portfolio risk and time horizon is maximised, whilst enhancing the tax advantages available.

EIS

SEIS

Open

Now

29/04/16

Minimum Investment: £5,000 Amount to be Raised: Various

Goldfinch Entertainment EIS & SEIS Investments Goldfinch Entertainment represents the gold standard in entertainment and media investment for individuals looking for EIS, Secured EIS, SEIS or our SEIS fund opportunities.

As Executive Producers on all projects, we structure each in a bespoke manner, selecting only the most commercially appealing with the best returns following strict due diligence. Our team includes industry leading personnel who have developed an enviable reputation for Goldfinch in the Entertainment and Investment sectors, having been shortlisted in the Growth Investor Awards ‘Industry Game Changer’ category. T. 0207 4332 927 E. stephanie.herriger@nlpca.co.uk www.goldfinchentertainment.com

EIS Open

Now

SEIS Close

Evergreen

Minimum Subscription: £20,000

Our EIS and SEIS vehicles have a minimum target return of 125p/£1 excluding tax relief with many also offering a share of net profits. Our Secured EIS product protects 70% of the invested funds, therefore with 30% Income Tax Relief reduces the investor’s risk capital to zero.

Kuber Ventures Multi Manager Platform Kuber Ventures Alternative Investment Platform allows investors to create a portfolio across different Fund Managers for EIS/SEIS/BPR investments. Through a single application and depending on the scheme selected, investors can create a diversified spread of qualifying investments.

Investors may select individual funds or choose to achieve further diversification by investing in one of the Kuber strategies available.

T. 020 7952 6685 E. info@kuber.uk.com www.kuberventures.co.uk

Our 8 strategy choices include: • Business Property Relief (Minimum Subscription £40,000) • Diversified Growth • Asset Backed • Seed & Early Stage Growth • Mature Growth • Long Term Investment Focused • Media • Seed EIS Strategy

March 2016 · www.eismagazine.com

SEIS Open

01/07/2015

24/03/2016

Amount to be Raised: 1.5m

Deepbridge Life Sciences SEIS The Deepbridge Life Sciences SEIS is an opportunity to secure potentially attractive returns by investing in a diversified portfolio of early-stage life science companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Scheme. The Deepbridge Life Sciences SEIS seeks to fund companies with exciting new technologies that satisfy the needs of large and growing markets. The overarching focus of the Deepbridge Life Sciences SEIS offers investors companies engaged in the development of therapeutics for the following areas: • Anti-viral drug discovery and development • Antibiotic drug discovery and development • Neurodegenerative disease therapeutics • Cancer diagnostics and therapeutics • Autoimmune and other metabolic disorders therapies

T. 01244 746000 www.deepbridgecapital.com

VCT Open

November 2015

05/04/2016

Amount to be Raised: £30m

The target return for the Deepbridge Life Sciences SEIS is >35% over a minimum of five years; representing mid-case capital growth of 250p returned for every 100p invested. To ensure maximum tax efficiency for the investor, the Deepbridge Life Sciences SEIS is entirely investor-fee free at point of investment

PUMA INVESTMENTS - PUMA VCT 12 Puma VCT 12 builds on the market-leading track record of previous VCTs. Puma VCT 12 will adopt the same, proven investment strategy primarily investing in established businesses in the form of ordinary equity together with senior secured loans. Strong Track Record: Puma VCTs I to V head their peer group for total return. Puma VCT V, the latest VCT to close delivered a total return of 106.3p per share, (equivalent to a 9.4% annual return) making it the highest return to date for a limited life VCT. Dividends: Target average annual tax-free dividend equivalent to 5p per share over the life of the fund, commencing from April 2018.

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

EIS Magazine · March 2016

Five Year Life: It is envisaged that after 5 years, the Directors will propose a special resolution for shareholders to vote on the process of winding-up the Company. Investment Size: Minimum subscription level is £5,000.

IHT Open

June 2013

Monthly

Amount to be Raised: Unlimited

T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

IHT Open

October 2014

Open Ended

Amount to be Raised: Unlimited

PUMA INVESTMENTS - PUMA Heritage Puma Heritage’s core focus is on secured lending. Its primary objectives are to preserve capital and mitigate risk. Strategy: Conservative trading strategy focused on secured lending. Flexibility: Choice of income or growth shares and ability to switch between them. Directors: Three experienced Directors bringing a multi-disciplinary approach. Experienced Adviser: Puma Heritage has appointed Puma Investments as its trading adviser. Aligned Interests: The interests of Puma Investments (the trading adviser) and Shareholders are entirely aligned: Puma Investments will not receive any performance fees and its annual advisory fees are only paid in full if the minimum target annual return is paid in full. Liquidity: Twice yearly opportunity to access capital (subject to terms set out in the Prospectus). Subscription Amount: Minimum subscription of £25,000 with no maximum. Inheritance Tax: It is intended that a subscription for shares in Puma Heritage will benefit from relief from Inheritance Tax provided the shares have been held for at least 2 years prior to and at the point of death.

PUMA INVESTMENTS - PUMA AIM INHERITANCE TAX SERVICE Puma AIM Inheritance Tax Service is a discretionary service that seeks to mitigate Inheritance Tax by investing in a carefully selected portfolio of AIM shares. The Puma AIM Inheritance Tax Service is also available in ISAs.

Portfolio Service: A discretionary portfolio service that seeks to deliver long term growth focusing on quality companies listed on AIM.

Inheritance Tax: It is intended that investors will benefit from relief from Inheritance Tax provided investments are held for at least 2 years prior to and at the point of death. Minimum subscription of £15,000 with no maximum. T. 020 7408 4070 E. info@pumainvestments.co.uk www.pumainvestments.co.uk

Available in ISAs: Whilst ISAs are extremely tax efficient during the holder’s lifetime, upon death ISA balances may be subject to a 40% IHT liability. Investing in a portfolio of qualifying AIM stocks allows holders to mitigate Inheritance Tax while still retaining the benefits of an ISA. ISA Transfers can be accepted from existing providers as well as new investments.

March 2016 · www.eismagazine.com

IHT Open

Evergreen

Amount to be Raised: Unlimited

Stellar Asset Management – Stellar Estate Planning Service Stellar Estate Planning Service is a discretionary managed portfolio designed to preserve capital and distribute an income of 4.5% per annum. The Service will commit capital to asset classes that qualify for Business Relief to provide 100% relief from Inheritance Tax after two years.

An investment in The Service will be diversified across three trading sectors which generate income organically including Construction finance, Hotels and Renewable energy.

Key Benefits: • 100% relief from IHT after only two years

• Complete control and full access to capital • Diversified & Asset backed portfolio • Focus on Capital Preservation

• Uncapped target income of 4.5% pa (net) T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

An income of 4.5% per annum is distributed bi-annually; investors who do not require the income can elect to re-invest it.

We offer a unique, but optional, insurance policy across our IHT products to protect investors from any future loss of value.

IHT Open

Evergreen

Amount to be Raised: Unlimited

Stellar Asset Management – Stellar Succession Stellar Succession utilises Business Relief to provide 100% exemption from IHT after just two years while enabling clients to keep control and ownership of capital.

Each client becomes a sole shareholder of their own bespoke private limited trading company, which allocates capital to diversified portfolio of asset backed, Business Relief qualifying trading activities including Forestry, Farming, Bridging Finance, Hotels and Renewable Energy. Key Benefits:

T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

EIS Magazine · March 2016

• 100% relief from IHT after only two years • Focus on capital preservation • Complete control and full access to capital • Access to growth or income trades • Diversified and non-correlated • Uncapped target return of 5% pa (net) • Asset backed We offer a unique, but optional insurance policy across our range of IHT products to protect investors from any future loss of value and ensure beneficiaries always receive the original amount invested as a minimum.

IHT Open

Evergreen

Amount to be Raised: Unlimited

Stellar Asset Management – Stellar AIM IHT ISA Stellar AIM IHT ISA provides clients with a diversified portfolio of AIM listed companies in a tax free ISA wrapper with the option of a unique insurance policy to protect investors from any future loss of value. Our AIM ISA is one of the most tax efficient investment opportunities available on the market. Key Benefits:

• 100% relief from IHT after only two years • Income Tax free • Complete control and full access to capital • Capital Gains Tax free • Easy access & liquidity • Potential for growth • Now available via Platform

This service is suitable for both those who wish to make their new ISA savings and current ISA holdings IHT efficient.

T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

IHT Open

Evergreen

Amount to be Raised: Unlimited

The investment strategy exercises a well-diversified, disciplined stock selection policy which focuses on long-term capital growth and risk mitigation.

We offer a unique, but optional insurance policy across our range of IHT products to protect investors from any future loss of value and ensure beneficiaries always receive the original amount invested as a minimum.

Stellar Asset Management – Stellar AIM IHT Portfolios Stellar AIM IHT Portfolios provides investors with a discretionary managed, diversified portfolio of AIM listed companies with the option of a unique insurance policy to protect investors from any future loss of value. Key Benefits: • 100% relief from IHT after only two years • Potential for growth • Complete control and full access to capital • Now available via Platform

This service is suitable for those who wish to transfer existing stocks and shares or have cash holdings to invest into a portfolio of AIM listed shares which qualify for Business Relief. The investment strategy exercises a well-diversified, disciplined stock selection policy which focuses on long-term capital growth and risk mitigation.

T. 020 3195 3500 E. info@stellar-am.com www.stellar-am.com

March 2016 · www.eismagazine.com

IHT Open

Now

Evergreen

Minimum Subscription: £50,000

Rockpool’s Managed Inheritance Service Rockpool’s Managed Inheritance Service is designed to deliver 100% exemption from inheritance tax after two years.

Investment through Rockpool’s Managed Inheritance Service will be made in unquoted shares in specialist lending companies who provide loans to corporate borrowers.

Our objective is to deliver a 5% net annual return with low risk to capital and the flexibility to take income or accumulate gains. The service has a simple, low cost transparent structure. T. 0207 015 2150 E. team@rockpool.uk.com www.rockpool.uk.com

IHT

BPR

Open

Now

Evergreen

Amount to be Raised: Unlimited Min Investment: £50,000

Rockpool’s Managed Inheritance Service facilitates adviser charges or introducer fees.

Triple Point Estate Planning Service The Triple Point Estate Planning Service allows clients to access both of Triple Point’s established strategies, Navigator and Generations, through one simple application.

Triple Point has a proven and consistently profitable 10 year track record in asset finance. The two underlying strategies; Navigator and Generations, focus on the provision of assets to institutions such as the NHS and Local Authorities (fewer, higher value transactions), and the provision of working capital funding to businesses (multiple, lower value transactions), respectively. Investors can chose their own allocation between these two strategies. This provides target returns to investors in the range of 1.5% to 6.0% net of fees, charges and corporation tax. To summarise the two strategies:

• Navigator Strategy: leasing and lending to a large and diverse range of UK-based small and medium sized businesses, targeting a net of Triple Point fees return of 4.0%-6.0% per annum

T. 020 7201 8990 E. contact@triplepoint.co.uk www.triplepoint.co.uk

EIS Magazine · March 2016

• Generations Strategy: leasing, lending and infrastructure funding to the public sector (i.e. Local Authorities, NHS) and to large, good quality companies, targeting a net of Triple Point fees return of 1.5%-2.5% per annum Please contact the sales team for more information.

Investments can be illiquid and the value of your investment is not guaranteed.

BPR Open

Evergreen

Amount to be Raised: No Max Min Investment: £50,000

T. 01865 860760 E. investment@oxcp.com www.oxcp.com

BPR Open

April 2013

N/A

Amount to be Raised: Unlimited

Oxford Capital Estate Planning Service The Oxford Capital Estate Planning Service is an investment which, if held for at least two years and still held at death, can be used to shelter part of an individual’s estate from Inheritance Tax. The Estate Planning Service provides a range of investment options, targeting differing levels of capital growth and dividend income. Should their circumstances change, investors can request access to part or all of their capital, by asking Oxford Capital to sell their underlying shares.

Investors in the Estate Planning Service will acquire shares in unquoted trading companies. Managed by Oxford Capital’s infrastructure investment team, these trading companies will make equity investments in, and loans to, companies which in turn will own and operate revenue-generating infrastructure assets, such as renewable energy installations.

The investor’s shares should qualify as ‘Business Property’, and therefore be eligible for 100% relief from Inheritance Tax through Business Property Relief, if held for the requisite period.

TIME Investments TIME:Advance TIME:Advance is aimed at individuals looking to reduce their Inheritance Tax (IHT) liabilities and offers 100% IHT relief in just two years, alongside a targeted return of 3.5% per annum. Importantly clients retain access and control, so have the option to withdraw a lump sum or set up regular withdrawals in the form of an income. TIME:Advance focuses on capital preservation by investing in asset backed businesses, with no debt which qualify for Business Property Relief (BPR). The product is managed by an expert team, with a proven 19 year track record of success in achieving BPR for investors.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com

BPR Open

October 1996

N/A

Amount to be Raised: Unlimited

TIME Investments TIME:Corporate Trading Companies TIME:Corporate Trading Companies (TIME:CTC) is our bespoke Inheritance Tax (IHT) solution for corporate investors, which boasts an impressive 19 year track record of delivering IHT relief for investors. TIME:CTC is aimed at business owners who have built up surplus cash in their business and could potentially lose Business Property Relief. TIME:CTC focuses on capital preservation by investing in asset backed businesses which qualify for Business Property Relief (BPR). It targets an attractive 3.5% return and to date more than 500 of our clients have already achieved BPR on their investments.

T. 020 7391 4747 E. questions@time-investments.com www.time-investments.com March 2016 · www.eismagazine.com

Crowdfunding for Advisers

The Bottle Shop is one of the UK’s leading craft beer companies. Distributer, retailer, wholesaler and importer of bottled craft beer. With an online oﬀering alongside retail locations in London and Canterbury.

Quvium is developing a small wearable medical device which has the power to predict an asthmatic attack before it occurs, consequently reducing A&E visits, hospitalisations, and deaths from asthma, particularly in children.

The Recyclabox allows customers to easily recycle old Phones, Tablets, Games & DVD’s. The business has been trialling its product in a major supermarket chain and is about to roll out across the UK.

Bo66y is a ﬁlm that marks the 50th anniversary of England's victory in the 1966 World Cup. It uncovers the truth behind Bobby Moore, England's greatest Captain, who fought many more battles than millions witnessed on the football ﬁeld.

Register free of charge at www.seedeisplatform.com. For further information, please contact us: 020 7071 3945. Risk Warning Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversiﬁed portfolio. Seed EIS Platform is targeted exclusively at investors who understand these risks and can make their own investment decisions. Investments can only be made by members of Seed EIS Platform on the basis of the information provided in the pitches by the companies concerned. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

Candlewick House, 120 Cannon Street, London EC4N 6AS Call: 020 7071 3945 enquiries@seedeisplatform.com www.seedeisplatform.com

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