The Velocity Technology EIS Fund

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

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

Fund Manager

Sapphire Capital Partners LLP

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).

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 £1,500,000 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.

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 Fee20%* (with a hurdle of £110p per £100p invested)n/a
Other Fee Informationn/an/a
*VAT will be added where applicable

Kuber Special Arrangements

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.

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

Alternative Investment Fund

Target Return

£2.50p per £1 invested

Scheme Strategy

Private Equity

Investment Sector

Technology

Target Diversification

min. 3 to 10 investee companies

Nominee & Custody Arrangements

Custodian: Woodside Corporate Services Limited

Nominee: WCS Nominees Limited