Investment Objective

Velocity looks for opportunities for investment that combine traditional business qualities of strong management, robust operations and risk management with attributes associated with the digital economy and technology environment: innovation, usefulness, scalability, and speed to market.

Usefulness - is there a demonstrable market demand for the product or service?

Inventiveness - is the company and the product/service innovative?

Scalability - does the product/service have global potential?

Speed to market - how quickly can the company get its product/service to market?

Management - does the company have a strong, well-balanced and motivated management team?

Potential Investee Companies are appraised by the Investment Committee by reference to these qualities and characteristics before due diligence is undertaken and a report prepared for the Investment Manager.

Exit Strategy

Each investment will be monitored by Velocity to ensure optimum cross-fertilisation across all the Investee Companies.

Velocity actively works with each founding team to evaluate and orchestrate a variety of appropriate exit strategies on behalf of the Fund including trade sales, listing on a stock exchange, or by selling its share of the Investee Company or a portfolio of its investments to a larger private equity firm or industrial interest.

The Fund will take a long-term view on the Investments and aims to only look at the possibility of exiting an investment after it has been held for at least three years, thereby ensuring that the Investment has met the key qualifying conditions necessary for Investors to obtain the tax reliefs. However, there may be occasions where an earlier sale is a commercially sensible decision. It is anticipated that most exits from Investments will take place after they have been held for between four years to seven years though some could take significantly longer depending on market conditions and the nature of the Investee Companies.

Fund Manager

Sapphire Capital Partners

Sapphire Capital Partners is a multi-award-winning investment management firm authorised and regulated by the Financial Conduct Authority. Sapphire is a specialist investment management firm established to provide investment management services and bespoke SEIS and EIS solutions. Sapphire is headed by Boyd Carson, a former Director of PwC’s Mergers and Acquisitions group in New York. Further details on Sapphire can be found on its website: sapphirecapitalpartners.co.uk/

Fund Provider

Velocity Capital Advisors Limited

Velocity Capital Advisors Limited was established to facilitate participation in exciting, young companies, which have technology at their core. We work with companies that are innovative, can scale quickly and provide a product or service that is genuinely useful to their customers.

Velocity seeks to make investments that offer investors capital appreciation opportunities. We are not re-inventing ourselves post the November 2017 budget capital preservation changes; investing in companies with growth potential is what we have always done.

The Velocity founders, come from entrepreneurial backgrounds, which we believe is a real asset.

Velocity has always sought to align its interests with investors and, to date, the founders have invested over £1,500,000 in investee companies of the previous Velocity funds.

Fees

Establishment Fee

4% (plus VAT) charged to portfolio companies

Annual Administration and Monitoring Fee

2% (year 1 charged to portfolio companies. The Fund will hold back two years fees up front at fund level from investors)

Performance Fee

25% of all amounts returned over and above £1.00 (based on a £1.00 Net Subscription amount in the fund)

Kuber Specific Arrangements

Kuber receives a fundraising fee of .5% from the manager.

Kuber will return this fee to Investors by applying it to their Subscription amount thereby increasing their investment.