About the Fintech 2016 SEIS Fund
The Fund is a growth fund which will build a portfolio of innovative and disruptive companies in the financial technology sector.
These young companies are looking for investment to develop and bring to market their products or services: it is by investing at the earliest stages of commercial exploitation that there is the potential to generate and then realise significant capital appreciation.
As the valuations of early stage startups are still considered relatively modest, the Fund will be able to acquire meaningful strategic shareholdings in these companies in order to maximise the potential return on investment.
The intention is that over time a significant number of portfolio companies will develop to the point where they can deliver J-curve growth in revenue, profit, and value, and provide investors in the Fund with a significant tax-free gain from 2018 onwards.
In addition to the high returns thought achievable in early stage investments, investors in the Fund will receive the full benefit of the generous tax reliefs offered under the Seed Enterprise Investment Scheme (“SEIS”):
- Income tax relief of 50% of the amount invested which can be “carried back” to the previous tax year;
- Capital gain tax reinvestment relief;
- Capital gain tax exemption when the companies are successfully sold;
- Loss relief on disposal against capital gain and income tax.
As entrepreneurs ourselves we understand the need to bring value beyond funding.
A cornerstone of the Fund’s own business model is to bring the best expertise to portfolio companies. One way to achieve this is to have the Portfolio Advisors’ network of experienced “business angels” co-invest in portfolio companies alongside the Fund. This will enable the Fund to benefit from their long-term involvement especially when further funding rounds are called for.
In the majority of cases, the Portfolio Advisors will also provide Investee companies with ongoing and active support through expert coaches, other portfolio companies and their network of partners offering a range of tailored services, from Marketing and PR to Finance and Accounting.
The invested startups are placed in an ecosystem which maximises their chance of success.
Potential to achieve high tax-free returns.
Receive SEIS tax relief on 100% of your subscription to the Fund.
Get exposure to one of the most exciting sectors of the new global economy.
Tested fund structure and operating model implemented on two previous SEIS funds.
Invest at the earliest stages of commercial exploitation to generate significant capital gains.
Benefit from the experience and connections of three organisations well established in the UK startup “space” and their ability to source some of the best FinTech opportunities.