The Fund’s strategy is built on three key pillars:
The Fund will invest in companies raising at the Seed or Series A-B stages with the following attributes:
Technology sub sectors include: Artificial Intelligence and Robotics, Internet of Things, Electronics, Advanced Engineering, Industrial Chemistry, B2B tech enterprise software, Environmental technology. EMVC also takes into consideration ESG principles and its message.
The expected holding period of most investments will be between the minimum three years for tax conditions and up to at least six years. However, it is noted that Investee Companies may be held for longer periods dependent on market conditions. It is noted that following the realisation of the Qualifying Shares in each Investee Company, the realisation proceeds will be paid to the Investors. Consequently, it is possible that Investors will receive distributions from the Fund over a period of time.
The exit strategy will, of course, vary depending on each investment. Due to the Fund’s focus, it is anticipated that for most investments, trade sales to corporates or secondary sales to financial investors will be the most likely exit routes.
The EMVC team Achieved a 2016 Exit from EIS eligible portfolio company at ~ 45% IRR. In 2019 EMVC also made a profitable partial exit from a US portfolio company. Current EIS portfolio company A at c.6x initial investment.
Examples of EIS portfolio companies invested to date include: Recycling Technologies (Circular Economy), Q-Bot (robotics in building industry), SageTech Medical (capture of high-value gases), Sofant Technologies (5G and Satellite Communications.
The Sapphire Capital Partners LLP team have extensive experience within the alternative investment sphere and act as Investment Manager to several EIS Funds. They have also won several awards within the industry including: Winner, Best Individual - rising star in EIS and SEIS (Boyd Carson, 2016 & Vasiliki Carson, 2017), Highly Commended, Best EIS/SEIS Tax Adviser (Sapphire Capital Partners LLP, 2017) and Winner, Best Company - innovation, newcomer or rising star in EIS and SEIS (Sapphire Capital Partners LLP, 2017).
EMV Capital Ltd (EMVC) is a London-based award-winning investor focused on B2B companies in the industrial high-tech, energy, circular economy, smart cities and transportation sectors and healthcare. EMVC’s investments in Europe, Israel and the US cover a range of technologies including robotics and AI, machine learning, materials science, IoT, advanced engineering, power electronics and medical devices. EMVC’s model is to develop a customized investment strategy for each company, combining its network of investors from Family Offices, Wealth Managers, Institutional VC investors and Corporate VC funds. While not an impact investor, EMVC understands the importance and value of the ESG principle, reflecting this within its investment thesis.
EMVC recognizes the benefits of corporate engagement for early-stage technology companies, with EMVC’s team having led and structured investments alongside some of the world’s leading corporations. EMVC can also provide advisory services to fast-track investment readiness as a specialist in techno-market strategy for IP-rich companies.
EMV Capital is the winner of the ‘Industry Rising Star’ Award at the Growth Investor Awards 2019 and the winner of the ‘Best EIS Newcomer’ Award at EIS Association Awards 2018.
Fee type | Fees charged to Investor (including VAT) | Fees charged to Investee Companies (including VAT) |
---|---|---|
Initial Fee | 0.90% | 3.00 – 6.00%** |
Annual Management Fee | 1.26% | 1.00 – 2.00%** |
Performance Fee | 24%* | n/a |
Other Fee Information | max. of 3 years of AMC taken upfront | Fees to investee company dependent on individual agreements |
In order to align interests between EMVC and Investors, no performance incentive is payable on any Investment until Investors receive cash proceeds equal to the total invested in the Investee Company. The performance fee will then be payable to EMVC or related parties as follows:
This performance incentive may be payable as a fee to EMVC on behalf of the Investors out of cash proceeds in the Fund on behalf of Investors, or by way of equity in an Investee Company. Different investments may require different structures but will be to equivalent economic effect.
To the extent that the performance fee is not paid by the Investee Companies, Investors shall be liable for their share of such fee and the Custodian may be instructed by the Investment Manager to transfer cash in an Investor’s Portfolio to EMVC to satisfy any outstanding performance fee.
Kuber investors receive 20% discount (equivalent to a 0.78 percentage point reduction) on the initial fees and upfront management fees.
Alternative Investment Fund
£3 for every £1 invested
Venture Capital EIS
Technology, Deep Tech, High-Tech, Industrial High-Tech B2B
min. 5 investee companies
Custodian: Woodside Corporate Services Limited
Nominee: WCS Nominees Limited
An investor qualifies as an High Net Worth investor if they have
(a) An annual income to the value of £100,000 or more;
(b) Net assets to the value of £250,000 or more. Net assets for these purposes do not include:
(i) the property which is their primary residence or any loan secured on that residence;
(ii) any rights under a qualifying contract of insurance within the meaning of the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001; or
(iii) any benefits (in the form of pensions or otherwise) which are payable on the termination of their service or death or retirement and to which they are or (or their dependants are), or may be, entitled.
An investor qualifies as ar Self-Certified Sophisticated Investor if at least one of the following applies:
a) they are a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below
b) they have made more than one investment in an unlisted company in the two years prior to the date below
c) they are working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium sized enterprises
d) they are currently, or have been in the two years prior to the date, below a director of a company with an annual turnover of at least £1 million