The Fund will be raising ca £1.5 million to invest into SEIS qualifying technology businesses over the next 18 months, continuing the investment strategy of Symvan’s previous two SEIS funds.
Symvan Capital enter into each SEIS investment with the aim of applying our Life Cycle Approach. They conduct stringent due diligence even at this early stage, because we are looking for future industry winners. Symvan will not invest in a company unless it can demonstrate the potential to return ten times our investment within a reasonable time frame.
In recent years, Symvan Capital has become a market leader in SEIS investing, and has duly won the top SEIS investment manager award from both EIS Association Awards and Growth Investor. Symvan is widely considered amongst the leading tax-efficient investors in early stage technology companies in the United Kingdom.
The November budget has made it very clear that only investments in true growth companies will be eligible for EIS, SEIS and VCT tax relief. Technology investing sits right in the middle of HM Treasury’s sweet spot, and Symvan’s latest SEIS fund provides investors the opportunity to participate in a fund which targets a return of £2.85 for each £1 invested over a 5 to 6 year period.
Symvan believes that the move away from traditional asset-backed or conservative EIS/SEIS products provides a significant opportunity to investors and wealth managers who need to generate alpha in the difficult few years ahead. After strong returns from traditional asset classes since the dark days of 2008, the implications of the next stage of the investment cycle will have a profound impact on anyone saving for a pension or simply to generate an acceptable portfolio return. Global equity markets have had a vigorous expansion over the past decade, but they will be severely challenged in the coming years against a backdrop of rising inflation and rising interest rates. Of course, rising interest rates mean that the bond market will go into bear market territory by definition and property prices – which are already weakening in London and the South East – look particularly vulnerable.
However, this is fertile ground for investing into early-stage technology companies, and a portfolio of such companies offers the potential to generate high returns, whilst being uncorrelated to traditional asset classes.
Finally, we also believe that Symvan is in the process of disrupting the tax-efficient investing market because we do not charge investors any fees except for a performance fee, which applies only if the investment is successful. We are seeking to eradicate what has plagued the tax-efficient market for years – unacceptable returns coupled with unacceptable fees to investors.
Kealan Doyle, co-founder of Symvan Capital, notes:
“The promotion of high growth technology companies surely ranks as an objective for any economic policy maker in an advanced nation seeking to thrive in an increasingly competitive global economy. The United Kingdom has consistently shined as a force for technological innovation and its universities and businesses punch well above their weight on the global scale.
Given what we know about the investment returns associated with successful high-growth firms and sectors, this potentially offers very attractive investment returns for UK investors. The risks in investing in early-stage venture capital are high but the UK government has provided tax-efficient incentives that dramatically alter the risk/return trade-off for investors in high growth companies, making such investments an integral part of suitable investment portfolios. Moreover, the Treasury has recently dramatically revamped the EIS/SEIS/VCT playing field, and only growth company funds are going to eligible for tax relief going forth. We see this as enormously beneficial to investors and advisors, as the Treasury is effectively ‘nudging’ them towards better investment incomes. Creating alpha in investor portfolios is going to be difficult in the next five years, and we believe that the inclusion of proper venture capital funds should be an essential part of a suitable portfolio. Particularly the ones that don’t charge investors fees!
The world of tax-efficient investing is changing, and Symvan Capital seeks to operate at the forefront of those changes. We are delighted to offer you the opportunity to accompany us on this journey.”
Symvan Technology SEIS Fund 3 is available through the Kuber platform, if you are interested in further information please contact us on firstname.lastname@example.org or +44 (0) 20 7952 6685