Fund in Focus - The Velocity Consumer Technology EIS Fund

Introduction

Since its inception, Velocity has been seeking to make investments that offer investors capital appreciation opportunities. We are not re-inventing ourselves post the November 2017 budget capital preservation changes; investing in companies with growth potential is what we have always done and will continue to do.

Potential Investee Companies will be appraised by the Investment Committee by reference to the following qualities and characteristics before due diligence is undertaken and a report prepared.

  • Usefulness – is there a demonstrable market demand for the product or service
  • Inventiveness – is the company and the product/service innovative?
  • Scalability – does the product/service have global potential?
  • Speed to market – how quickly can the company get its product/service to market?
  • Management – does the company have a strong, well-balanced and motivated management team?

Background

Velocity Capital Advisors Limited was set up as a vehicle to facilitate participation in exciting, young companies, which have technology at the core of their offering. We look to work with companies that are innovative, can scale quickly and provide a product or service that is genuinely useful to their customers, whether B2C or B2B.

The Velocity Capital Advisors founders, come from entrepreneurial backgrounds, which we believe is a real asset to our business and the investee companies. As part of our growth strategy, we have added people with experience in operations and law, offering additional rigour to Velocity Capital’s processes and systems.

Fund Highlights

Velocity has been operating for over three years, and in those years the SEIS and EIS funds achieved an investee company cash exit[1] of 6.5x[2], and the overall current performance of the first four funds is estimated to be 2.3x, 1.5x, 1.4x and par[3] respectively[4].

Velocity Capital Advisors Limited has always sought to align its interests with investors and, to date, the founders have invested over £1,500,000[5] in investee companies of the previous SEIS and EIS Velocity funds, highlighting our belief in and commitment to their success. Put simply, if you lose, we lose.


[1] Represents a partial exit from an investee company.
[2] Please note that past performance should not be regarded as an indication of the performance of future investments made by the Velocity EIS Technology Fund 4.
[3] Ibid.
[4] These four returns stated are dependent on a future liquidity event such as a trade sale, IPO or other liquidity event.
[5] Investments were made by Bil [William] Bungay and Alex Johnston.

Upcoming proposed investments*

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

*subject to IC and Sapphire Capital Partners LLP approval