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 £1m 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

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.

Fund Manager

Thompson Taraz Managers Ltd

Thompson Taraz is an established real estate, venture capital and EIS discretionary investment manager with 20 years of experience enhanced by its Strategic Adviser’s asset class expertise. Thompson Taraz have an in-house risk management and regulatory compliance capability. The wider Thompson Taraz group also provides fund administration, AIFMD depositary, and fund establishment services. Thompson Taraz is authorised to act as a discretionary investment manager by the UK Financial Conduct Authority (‘FCA’) and its FCA registration number is 226978

Fund Provider

Velocity Capital Advisers Ltd

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 £1,000,000 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.

Fees

Fees levied against investee companies.

Establishment fee

4% of net subscription amount

Annual administration and monitoring fee

EIS – 3% of net subscription amount

Performance fee

25% of all amounts returned to investors in excess of their net subscription amount

Director’s fee

£5,000 per annum where applicable

(All fees and costs may be subject to VAT).

Kuber Specific Arrangements

Kuber receives a fundraising fee of 0.5% from the manager. Kuber will return this fee to Investors byapplying it to their Subscription amount thereby increasing their investment.