Fund in Focus - Boundary Capital AngelPlus EIS

Intro

The Boundary Capital AngelPlus fund, available for both EIS and SEIS investment, is an opportunity to invest in early-stage, high-growth technology companies alongside experienced entrepreneurs. Co-investment alongside business angels is a central theme of the offer.

Background

Boundary Capital Partners LLP is a venture capital firm investing in early stage technology companies with a particular focus on ICT and electronics, green / clean tech, materials and chemistry, and healthcare and life sciences. Established in 2009, Boundary Capital collectively has 60 years of venture capital experience. It has a network of 300 investing directors. Managing Partner Dan Somers has founded several IT companies including videoconferencing business VC-Net and predictive analytics company Warwick Analytics. Mr Somers holds an MA in Natural Sciences from Cambridge University and a Diploma in Business studies.

Proposition

Boundary Capital aims to invest in technology-based or knowledge-intensive companies which are capital-efficient and have the potential for high growth. Boundary believes that the risk factors for such companies often revolve around their ability to execute commercially, the market fit of the product and scalability. Supporting these companies, who often have technical founders, with the right expertise is one way to mitigate these risks.

As well as providing capital, Boundary offers expertise in the form of ‘Venturers’ to the companies in which it invests. Boundary has access to an extensive proprietary network of entrepreneurs and executives. Boundary will only invest if an appropriate ‘Venturer’ is willing to invest alongside Boundary on the same terms and take a seat on the investee company’s board. This helps to mitigate some of the risks mentioned, align interests and qualify the investee company’s team for the ability to partner.

Investors will hold between four and eight investments and exit is planned for after the fifth year, which is not guaranteed. Potential exit routes are trade sales, IPOs, MBOs and company buy backs.

Boundary Capital sees 500 to 600 deals every year. Of those, 100 make it to investment committee level where they are given a full review. Around 40 companies’ management teams are then interviewed and an appropriate Venturer sought. 4 to 8 companies are selected for investment.

Portfolio

Example investment – Desktop Genetics

In August 2013, Boundary Capital invested in Desktop Genetics Limited, an award-winning genome editing software company. Desktop Genetics enables scientists, particularly those involved in the CRISPR genomics revolution, to design and execute experiments and interpret the resulting data. The company was formed by three postgraduates from the University of Cambridge.

Example investment – AB Polyblok

AB Polyblok is a revolutionary technology with the potential to treat and potentially even partially reverse the effects of Alzheimer’s disease, the largest cause of dementia. There are an estimated 46.8 million people worldwide living with dementia in 2015. This number will almost double every 20 years, reaching 74.7 million in 2030 and 131.5 million in 2050. There are several drugs to temporarily relieve symptoms and a huge amount of R&D with different approaches although all are long-term projects with few breakthroughs to date.

Example Investment - Dymag Group

Dymag produces lightweight wheels for the automotive industry using carbon composite and forged aluminium that offer performance, economy and aesthetic benefits. Boundary invested in 2015 and enabled the company to secure substantial grant funding to develop IP for a new range of hybrid car wheels.

Boundary’s Venturer was Chris Brill, is a serial entrepreneur in engineering as well as having technical expertise to help guide their engineering and IP strategy. The company now has several OEM customers and a growing pipeline. The wheels have been used on Formula 1 and supercars and are rolling out distribution internationally.

News

Boundary Capital exits Image Scan to realise gain for investors

Boundary Capital has announced its exit for the bulk of its holdings in AIM listed Image Scan Holdings Plc. The exit has returned four times the original investment for investors, after only three years.

Boundary Capital has invested in a number of assets in technology and life sciences covering big data analytics, left science therapeutics and diagnostics, advanced manufacturing and security software.

Image Scan Holdings plc has been a successful growth story. It has a range of different X-Ray products in the security and industrial market, notably portable X-Ray scanners for security in public places.

Dan Somers, Managing Partner of Boundary Capital says: “We are delighted to return fourfold to our investors for this asset within three years. We are also pleased to have our investment thesis validated in this regard.”

If you are interested in further information about the Boundary Capital AngelPlus EIS Fund, please contact us on on info@kuber.uk.com or +44 (0) 20 7952 6685.