The Deepbridge Innovation SEIS offers investors an opportunity to secure potentially attractive returns by investing in a diversified portfolio of seed-stage innovation companies, whilst taking advantage of the considerable income tax, capital gains tax, and inheritance tax benefits available under the Seed Enterprise Investment Schem.
Providing seed investment to emerging technology-focused companies, the Deepbridge Innovation SEIS seeks to fund selected investee companies that possess an exciting new innovative approach to meet the existing and emerging requirements and demands of both corporate and consumer markets.
The overarching focus of the Deepbridge Innovation SEIS is to offer investors a diversified exposure to companies engaged in a variety of technologies, including:
Energy and resource innovation
Medical technologies and diagnostics
Business enterprise information technology
Transport & automotive innovation
Instrumentation and control technologies
Advanced materials and manufacturing
Robotics, machine learning, and artificial intelligence.
Deepbridge will source investee opportunities from an extensive dealflow network that potentially includes research and innovation organisations, commercial enterprises, academia, venture capital institutions, as well as Government-backed development funding agencies. Two specific dealflow relationships are with Sci-Tech Daresbury, a national innovation and science campus established in 2006, and We Are Nova, a digital development organisation that specialises in creating and growing digital start-up businesses.
The Deepbridge team believes that most exits in the technology sector will take place in the M&A space, and so aim to execute business models suitable for this exit route. To appear on potential acquirers’ radars, Deepbridge seeks to invest in opportunities that have the potential of becoming either a threat or a complement to existing products on the market. Exits will be sought at the earliest opportunity after the third anniversary of the investment made, however, exit strategies will likely be implemented within 4-5 years from investment date.
Enterprise Investment Partners LLP
Enterprise Investment Partners LLP is a specialist smallcap investment boutique established over five years ago, whose activities include corporate finance, fund management and the design and promotion of tax-efficient investment products, with major emphasis on EIS. Enterprise has considerable experience of EIS and the tax-efficient industry, with particular expertise in the leisure, media, commercial property and renewable energy sectors. The three principals together have raised over £200m under EIS, VCT and other tax efficient structures over the last five years.
Deepbridge Advisers Limited
Deepbridge is a different kind of investment manager. We work closely with financial advisers and investors to design innovative products, ranging from investment in technology growth companies to asset-backed renewable energy projects. We also partner with innovative and committed management teams to help UK based companies realise their potential and become successful leading-edge businesses. Deepbridge operates across four principle divisions: disruptive technology, sustainable technologies, life sciences and renewable energy.
Successful investment in growing companies requires an appropriate balance between entrepreneurial optimism and venture capital realism. Investors can be blinded by the potential upside; however, seeing the path to commercialisation from a realistic standpoint demands an objective and experienced perspective from the Investment Manager.
Fees charged to Investor (including VAT)
Fees charged to Investee Companies (including VAT)
Annual Management Fee
Other Fee Information
0.50% - Custodian Fee
VAT will be added where applicable
*Performance Incentive Fee
The Investment Adviser will receive an incentive fee of 20% of the amount of cumulative total cash returned to the Deepbridge EIS by each Investee Company in excess of the amount of the funds invested in the respective Investee Company.
For clarification, once the Investor has received in cash the first 150 pence per 100 pence invested (ignoring any tax relief and representing a 50% Hurdle Rate on funds invested), any additional distributable cash will be paid as to 80% to the Investor and 20% to the Investment Adviser.
This is intended to align the interests of the Investment Adviser with those of the Investors and the incentive fee will therefore only become payable if the total cash returned to Investors, per Investee Company, exceeds the amount of initial capital invested by 20% or more.
Kuber Specific Arrangements
Kuber receives a fundraising fee of 1.0% from the manager. Kuber will return this fee to Investors by applying it to their Subscription amount thereby increasing their investment.
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