Providing ‘scale-up’ capital to accelerate the commercialisation of the best performing UK-based businesses in the field of robotics, automation, AI and driverless vehicles.
Robotics & AI are ‘generalist technologies’ that deliver transformative value-generation across almost all sectors of the economy (just as previous generalist technologies such as steam, electricity or and the Internet have done in the past.) The fund seeks to give investors access to this important investment theme.
Due to the early-stage nature of the Fund’s investments, a clear exit strategy has to be implemented. There will be a premium on automation over the forthcoming five years in Western economies as the population ages and economic immigration becomes more restricted. Consequently we have seen an acceleration of M&A activity for the best performing robotics and AI businesses, leading to potential for extremely attractive portfolio returns.
The exit strategy of the fund is to realise individual investments following the EIS 3-year holding period either via a secondary share sale (to another fund), or trade sale, or IPO. In practice this period could be longer, and since the Fund has an anticipated life of five years Investors may be unable to achieve a return on investments made for their account before that time.
The Scale-Up Fund is new so there have not been any exits yet. However the fund’s investment team does have a track record of delivering substantial exits for investors.
Sapphire Capital Partners LLP is a multi-awardwinning firm based in London and Belfast which specialises in SEIS and EIS funds. Sapphire currently manages over fifteen SEIS and EIS funds across a wide variety of sectors, bringing the partners’ expertise in investment management, corporate finance, accounting and taxation to the funds in the most cost-effective way possible.
Britbots is an investment management and mentoring business focussed on robotics, AI, automation and autonomous vehicles. We currently oversee a portfolio of eighteen highgrowth companies on behalf of funds raised from individual investors via tax-efficient schemes.
Fee | Investor | Investee Company |
---|---|---|
Initial | n/a | 3.9% of funds invested |
Recurring charges | n/a | Investee companies each pay c.£1,000 per quarter for fund administration and mentoring. |
Performance Fee | 25% of uplift over invested amount (typically paid by investee companies via warrants). | n/a |
Kuber receives a fundraising fee of 2.5% from the Manager. Kuber will return this fee to Investors by applying it to their Subscription amount thereby increasing their Investment.
EIS-qualifying Alternative Investment Fund
£3 return (net of tax relief) within a 3-5 year period
Venture Capital (Evergreen fund structure)
Technology, Robotics, AI, automation and driverless-vehicles
6 to 12 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