Deepbridge Innovation SEIS

Investment Objective

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 Scheme.

Providing seed investment to emerging technology-focused companies, the Deepbridge Innovation SEIS seeks to fund selected investee companies that possess an exciting new innovative approach to meet the existing and emerging requirements and demands of both corporate and consumer markets. The 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
  • Data analytics
  • 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.

Exit Strategy

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.

Fund Manager

Enterprise Investment Partners LLP

Fund Provider

Deepbridge Advisers Limited

Fees

Investors are not charged any manager fees at the point of investment. Upfront and ongoing manager fees are paid by the Investee Companies. Fees as follows:

Corporate Advisory and Arrangement Costs

The Investment Adviser will charge the Investee Companies a corporate advisory and arrangement fee of up to 2.5% of funds invested in that Investee Company

Annual Maintenance Charge

An annual maintenance charge of 2% of the funds invested in an Investee Company will be paid to the Investment Adviser by each Investee Company on an annual basis. From this fee, the Investment Adviser will pay certain operating costs of the Investee Company including the ongoing monitoring of each Investee Company.

Dealing and Custody Fees

The Investment Adviser will charge each Investee Company a dealing fee of 0.65% on the sale and purchase of shares, and a Custody Administration fee of 0.50% p.a. for the provision of custody services. The Custodian shall receive these fees for their respective services, payable by the Manager, upon presentation of invoice to the Manager or Investment Adviser.

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.

Investor Marketing and Other Fees

The Investment Adviser reserves the right to levy additional fees to the Investee Company to meet any costs relating to investor marketing, additional fundraising and administration, custody and dealing services, as well as those specific legal and compliance services provided not covered by the Annual Maintenance Charge. Such fees will be reported to the Investment Manager and investor on a regular basis.

Shares, Options & Warrants

In certain instances, the Investment Adviser may also seek to take shares, options or warrants in the Investee Companies either in lieu of any of the above charges or fees in addition and in line with standard industry practice.

All fees, costs and expenses levied on the investee companies are stated excluding any VAT which may also be charged where applicable.

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.

For further information please do not hesitate to

contact us on:

+44 (0) 20 7952 6685
info@kuber.uk.com
www.kuberventures.co.uk

Fund at a glance

Scheme Categorisation

The Scheme is structured as an Alternative Investment Fund

Target Return

Mid-case capital growth of 200p for every 100p invested targeted, over a minimum 5-year period.

Scheme Strategy

Private Equity SEIS

Investment Sector

Technology

Target Diversification

Minimum of five Investee Companies targeted.

Nominee & Custody Arrangements

The Nominee: Woodside Nominees Limited

The Custodian: Woodside

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