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.
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.
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.
If you are interested in further information about Velocity EIS, please contact us on info@kuberventures.com or +44 (0) 20 7952 6685.
*subject to IC and Sapphire Capital Partners LLP approval
An investor qualifies as an High Net Worth investor if they have
(a) An annual income to the value of £100,000 or more;
(b) Net assets to the value of £250,000 or more. Net assets for these purposes do not include:
(i) the property which is their primary residence or any loan secured on that residence;
(ii) any rights under a qualifying contract of insurance within the meaning of the Financial
Services and Markets Act 2000 (Regulated Activities) Order 2001; or
(iii) any benefits (in the form of pensions or otherwise) which are payable on the termination of their service or death or retirement and to which they are or (or their dependants are), or may be, entitled.
An investor qualifies as ar Self-Certified Sophisticated Investor if at least one of the following applies:
a) they are a member of a network or syndicate of business angels and have been so for at least the last six months prior to the date below
b) they have made more than one investment in an unlisted company in the two years prior to the date below
c) they are working, or have worked in the two years prior to the date below, in a professional capacity in the private equity sector, or in the provision of finance for small and medium sized enterprises
d) they are currently, or have been in the two years prior to the date, below a director of a company with an annual turnover of at least £1 million