Fund in Focus – Start-Up Series SEIS Fund

Worth Capital

Introduction

Worth Capital have a remarkably effective and innovative way of unearthing the most valuable ideas and committed, ambitious, talented entrepreneurs – and therefore give investors a highly tax efficient SEIS portfolio that has every chance of generating exceptional returns. Their ‘secret sauce’ is using a widely promoted monthly competition – The Start-Up Series – to attract deal flow, from which they pick one worthy winner each month to receive £150,000 of SEIS eligible equity funding. After closing two popular tranches of investment earlier this year, there is an opportunity to invest now in their third tranche which gives investors equity across four exceptional new businesses.  

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Background

The founders of Worth Capital are brand, marketing, retail and innovation experts that have been angel investing for 12 years. They have an enviable record of seed investing and actively helping entrepreneurs to turn their ideas into successful, sustainable and fast growing businesses. They have developed an origination methodology, through sophisticated distillation of competition entrants, that has been designed to ‘stack the odds of seed investment’ through selecting and guiding promising consumer goods and services companies.

Building on the success of previous competitions, Worth Capital have introduced the Start Up Series, a high profile search for talented UK entrepreneurs. Its target fund total of £2.1M makes the Start Up Series the largest seed funding competition of its type in the UK. It is being promoted by Startups.co.uk, a leading online portal designed to bring innovative ideas and funding together under one e-enabled ‘roof’ which sees 400k monthly unique visitors.

The proposition

The Start-Up Series will target consumer start-ups: the creation of new products & services to buy, and the ways that we buy them. ‘Tech’ is not specifically being targeted, although technology based disruptions to the target sectors will be expected and encouraged.

The Start-Up Series Fund (SEIS) enables investors to hold equity in one or more Tranches of qualified winners of the Start-Up Series, along with possible discretionary investments in other SEIS-eligible companies. This will give eligible investors the benefits of SEIS associated tax reliefs alongside the potential growth in these exciting winners. Start-Up Series Fund (SEIS) is managed by Amersham Investment Management, commercially advised by Worth Capital.

Due diligence is at the heart of the selection process, as detailed in the below diagram, involving several established and successful entrepreneurs and business angels. A comprehensive multi-stage assessment, filtering and judging process has been developed which includes plenty of time face-to-face with the short-listed entrepreneurs to help guarantee the quality of the winners and fair valuations.

In closing Tranche 1, the Start-Up Series Fund One has invested in four businesses, all of which received SEIS investment of £150,000.

Tranche 1

RENTALSTEP

RENTALSTEP will help responsible tenants to build their credit score and history, equivalent to someone paying their mortgage. Therefore giving landlords tenants that are motivated to pay on time and in full.

  • www.rentalstep.co
  • £150,000 SEIS investment
  • pre-money valuation £350,000
  • 30% equity

NOT DOGS

NOT DOGS are meaty... without the meat. Hot dogs with innovative, homemade toppings with the aim to bring addictive, delicious meat-free fast food to the market in a more trustworthy, healthier way for people, animals and the environment.

  • www.notdogs.com
  • £150,000 SEIS investment
  • pre-money valuation £425,000
  • 26% equity

ITSY

ITSY will manufacture, retail and distribute products aimed at helping parents with weaning children. Launching with a patent pending, portable, wireless, food processor.

  • www.myitsy.com
  • £150,000 SEIS investment
  • pre-money valuation £325,000
  • 31.6% equity

OUTFOX

OUTFOX DRINKS are no-alcohol wines, beers and a cider – that taste great, are low sugar, low calorie and that keep the feel good experience of alcoholic drinks.

  • www.outfoxdrinks.com
  • £150,000 SEIS investment
  • pre-money valuation £800,000
  • 15.8% equity

Tranche 2

MYZA

Myza...is an online curated marketplace with a singular focus on sleep and the whole sleep experience. Going live in October, it will have generous editorial – to include advice from a team of leading sleep experts and professionals. This content will lead consumers onto a marketplace for quality brands - established, emerging or lesser known - of sleep related products.

  • www.myza.co
  • £100,000 SEIS investment
  • pre-money valuation £350,000
  • 22.2% equity

TOGETHER

Together...is a travel club for a mobile-first generation. Creating great pre-, during and post- holiday experiences, for individuals and groups, with clever tech and guaranteeing best value for money and experience. Turnover of £900k and a average trust pilot review score of 4.8 in 2016.

  • www.together.travel
  • £137,500 SEIS investment
  • pre-money valuation £1,300,000
  • 9.3% equity

BUILDERS BAY

Builders Bay…is a marketplace for builders, self-builders, DIY enthusiasts and industry suppliers to buy, sell and source surplus, reclamation and new building materials, tools and plant. Serving the £28 billion building supplies industry.

  • www.buildersbay.co.uk
  • £140,000 SEIS investment
  • pre-money valuation £650,000
  • 17.7% equity

Current opportunities

Tranche 3 closing November 2017

THE BLOW DRY PASS

is a £99 monthly subscription to unlimited good hair days at the tap of an app button, from branded blow dry counters in department stores, gyms and other convenient & high footfall locations.

  • www.theblowdrypass.com
  • £150,000 SEIS investment
  • pre-money valuation £650,000
  • 18.75% equity

HANGRY

…cold pressed, organic, fruit, oat, nut and seed bars. No nutrients lost, no nasties added and naturally low in calories. 100% natural, vegan, wheat free and diary free.

  • www.hangryfood.co.uk
  • £150,000 SEIS investment
  • pre-money valuation £700,000
  • 17.65% equity

MotoTattoo

…is revolutionary method to create custom motorcycle helmets - making them better quality, more customisable and much cheaper than existing options.

  • www.mototattoo.com
  • £150,000 SEIS investment
  • pre-money valuation £650,000
  • 18.75% equity

NIGHTLY

…is a new way to book hotels –giving travellers the option to switch hotels once during their trip to get the best value, a different experience and save as much as 70%.

  • www.nightly.travel
  • £150,000 SEIS investment
  • pre-money valuation £640,000
  • 18.99% equity

The Start -Up Series SEIS Fund One is managed by Amersham Investment Management Ltd, a specialist investment management firm and Alternative Investment Fund Manager currently managing assets including in excess of £26m of SEIS/EIS funds.

If you are interested in further information about the Start-Up Series SEIS Fund, please contact us on info@kuber.uk.com or +44 (0) 20 7952 6685’