Velocity SEIS Technology Fund 4

Investment Objective

The Investment Consultant believes that the UK Consumer Technology Market currently offers attractive EIS investment opportunities and it will source opportunities to allow the Funds to invest in companies that, in the Investment Consultant’s opinion, meet the following criteria:

  • Have a consumer technology focus
  • High growth, capital appreciation potential
  • Have obtained advanced assurance of qualification for EIS tax relief.

The focus on the fund is technology, high capital appreciation potential and job creation as per the sentiment of the recent EIS Nov 2017 Budget announcement.

To mitigate risk the Fund has the following strategy:

Investor alignment – Velocity have also invested over £1.5m of their own capital to align with investors

Active management approach – all investee companies are actively managed to ensure that key milestones are monitored and achieved

Focus on revenue generation – even though Velocity operates within the technology sector, traditional business values of strong management, revenue generation, profit margins and target audience resonance are applied.

First and foremost, the Investment Consultant will address the issue of target audience demand, given that the number one reason for a start-up failing is a lack of market demand for its product.

Potential Investee Companies will be appraised by the Management Team and the Technology Panel 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.

Company NameDate of exitExit multiple
BMB200833x
Freuds200510x
PriceRunner20022.5x
Purplebricks201557x
Snatch 20176.5x
Thompson Online Benefits20162000x
Tiffin Bites 200915x
UWE201916x

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

Fee typeFees charged to Investor
(including VAT)
Fees charged to Investee Companies (including VAT)
Initial Feen/a5.00%
Annual Management Feen/a2.00%
Performance Fee25%* of all amounts returned over net subscriptionn/a
Other Fee Informationn/an/a
*VAT will be added where applicable

Kuber Specific Arrangements

Kuber receives a fundraising fee of 0.50% from the manager. Kuber will return this fee to Investors by applying it to their Subscription amount thereby increasing their investmen

For further information please do not hesitate to contact us on:
+44 (0) 20 7952 6685
info@kuberventures.com
www.kuberventures.co.uk

Fund at a glance

Scheme Categorisation

Discretionary Managed Fund

Target Return

£2.50 for every £1 invested

Scheme Strategy

Growth SEIS

Investment Sector

Technology

Target Diversification

3 to 8 investee companies

Nominee & Custody Arrangements

Custodian: Woodside Corporate Services Limited

Nominee: WCS Nominees Limited