Newable Scale Up EIS Fund 3

Investment Objective

The Fund seeks to leverage Newable’s unique corporate infrastructure and the extensive eco-system built by Newable and London Business Angels over the last 35 years. Bringing together the best entrepreneurs, partners and investors to invest in and help scale high-growth businesses.

We target the funding gap that exists for businesses which have de-risked their technology, developed traction with customers and now seek funding to scale their commercial operations. The Fund aims to provide investors with a diversified portfolio of 7-10 EIS qualifying investments per subscription across our key sectors; SpaceTech, Life Sciences, Automation and Electronics.

The Newable Investment Committee has over 100 years of combined investment experience with a track record of making successful investments across the Innovation and Technology space.

Latest returns update:

  • Average 33% across all EIS funds
  • 21% failure rate
  • 2 successful exits between 3.6x and 7x

Exit Strategy

The fund will endeavour to realise investments whenever it is commercially prudent to do so. The fund targets realising investments in a 5-8 year time-frame. Exits are anticipated to come from either i) a secondary share sale to a next stage investor i) a trade sale to a corporate investor or iii) a main market listing.

Exit History
CompanyDate of exitShare purchase priceShare exit pricesTotal return (net of reliefs)
Contact EngineApril 2017275.49810228,136

Fund Manager

Larpent Newton

Larpent Newton & Co Ltd is a venture capital umbrella company providing discretionary fund management services to venture capital and Enterprise Investment Scheme (“EIS”) funds (and “SEIS” funds), while also providing appointed representatives (“ARs”) an umbrella service, providing AR cover to certain firms involved in early-stage investing in the UK technology landscape.

The strategy underlying Larpent’s approach to venture capital was formulated in the early 1980s when Charles Breese had the insight that the economic turmoil prevailing in 2008 would come - he regarded people behaving as though they were wealthy supported mainly by ever rising property prices as unsustainable. Accordingly he developed an investment template to identify technology companies likely to thrive throughout economic cycles, including periods of turmoil (SMARTCOs) - it is based on an analysis of the principles applied by people who build businesses to compete on the basis of value rather than price.

The key target features of SMARTCOs are:

I) commercialising game changing technology with the potential of providing solutions to global problems i.e. exporters.

II) providing economic benefits to their direct and indirect customers i.e. competing on the basis of value rather than price, through improving customer productivity.
II) pursuing a business model generating a growing stream of predictable income, resulting in less resource needing to be deployed on ongoing lead generation (which provides no value to customers) and more resource on product development (which benefits customers).
IV) possibility to be grown from start-up/early stage to a considerable size and scale with successful ongoing execution of the strategy.
V) the business must have the ability to build partnership relationships with customers based on a) exceptional knowledge and b) being prepared to work with customers at the product development stage through to volume manufacturing.
VI) a team containing senior industry relevant experience gained within a large corporate.“

Fund Provider

Newable Ventures Limited

Fees

Entry costs

2% The one-off costs each investor pays when subscribing to the Fund. Initial subscription fee of 2% for advised clients.

1% There is also a management fee of 1% plus VAT for the first year of the Fund only.
0.25%; Investors in the Fund in addition also pay the Administrator and Custodian a commission on each purchase of shares at 0.25% of the value plus VAT.
£30 (to be waived for Kuber Clients) Compliance charge: £30 plus VAT will be charged upon receipt of individual applications (charge per application) to cover anti-money laundering compliance costs.

Exit costs

0.25% Similarly as with purchasing of the Shares, Investors in the Fund will pay the Administrator and Custodian a commission on each sale transaction of the underlying Investments at the rate of 0.25% of the value plus VAT

Portfolio transaction costs

0% There are no on-going portfolio transaction costs.

Other ongoing costs

£30 The Administrator and Custodian may charge a reregistration fee of £30 plus VAT to investors per holding if an Investment is to be transferred out of the nominee’s name (for example, upon termination or in the event of a transfer to the nominee of a new Administrator).

Performance fees

20% The impact of the performance fee. We take: 20% plus VAT of any returns to Investors above £1.10 per £1 of Subscriptions in an Investee Company.

Monitoring Fee

1.5% Investee companies pay a 1.5% annual monitoring fee on investments.

Transaction Fee

3.5% Investee companies pay a 3.5% transaction fee upon successful completion of investments

Kuber Specific Arrangements

N/A

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

Alternative Investment Fund

Target Return

£3 per £1 invested

Scheme Strategy

Venture capital EIS

Investment Sector

Technology (Electronics/Automation/Med – Tech/Space)

Target Diversification

Targeting at least 7-10 companies

Nominee & Custody Arrangements

The Nominee: Woodside Nominees Limited

The Custodian: Woodside