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:
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.
Exits likely to be achieved via a sale, disposal or listing of an investee company.
A partial exit approach to one or more of its investee companies is the approach so that risk can be mitigated as soon as possible. NB - the first fund, which started in April 2016, has already achieved a 6.6x cash return in respect of one of its holdings in May 2017 within 13 months of investment. This means that its investors are already cash positive.
Company Name | Date of exit | Exit multiple |
---|---|---|
BMB | 2008 | 33x |
Freuds | 2005 | 10x |
PriceRunner | 2002 | 2.5x |
Purplebricks | 2015 | 57x |
Snatch | 2017 | 6.5x |
Thompson Online Benefits | 2016 | 2000x |
Tiffin Bites | 2009 | 15x |
UWE | 2019 | 16x |
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).
Velocity Capital Advisors Ltd is a UK limited company, comprising a specially assembled Management Team and a hand-picked Technology Panel to advise on investment opportunities. The Management Team boasts a track record of finance, fundraising and entrepreneurial success across a range of sectors, disciplines and territories, having raised in excess of £250 million through previous funding vehicles.
The Investment Consultant’s Management Team have also personally invested over £1,500,000 in Velocity investee company businesses.
The Investment Consultants’ Management Team brings together individuals with proven entrepreneurial track records and expertise across the entire business spectrum; from finance and fundraising, venture capital, marketing, design and brand building, to consumer technology.
Between them they combine a thirst for innovation and entrepreneurship with extensive experience of finance and fundraising. The Management Team possesses the expertise, experience and insight to not just identify the right investments, but to nurture and support them on their journey as well.
Fee type | Fees charged to Investor (including VAT) | Fees charged to Investee Companies (including VAT) |
---|---|---|
Initial Fee | n/a | 5.00% |
Annual Management Fee | n/a | 2.00% |
Performance Fee | 20%* (with a hurdle of £110p per £100p invested) | n/a |
Other Fee Information | n/a | n/a |
Kuber investors receive a fundraising fee of 1% from the manager. Kuber will return this fee to investors by applying it to their subscription amount thereby increasing their investment.
Alternative Investment Fund
£2.50p per £1 invested
Private Equity
Technology
min. 3 to 10 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