Review: Deepbridge Technology Growth EIS
Good fund managers are choosy when it comes to investment selection. However, it’s probably fair to describe Ian Warwick, Managing Partner of Deepbridge, as downright fussy.
So, what are the requirements?
Firstly, to be considered for the Deepbridge Technology Growth EIS, the companies should own robust intellectual property or patented products that create a new market or significantly influence an existing one. This could provide some value if the business doesn’t work out. Other requirements are global scalability and the ability to move in multiple industries. The management must be highly competent and have a deep understanding of the area in which it operates.
Deepbridge targets businesses in three key sectors: energy and resource innovation, medical technologies, and high-growth IT-based technologies.
Watch an exclusive video interview with Deepbridge managing partner Ian Warwick:
Where could your money be invested?
The Deepbridge Technology Growth EIS is an evergreen fund. However, at any given time the fund has a roster of around five companies in which it deploys investors’ subscriptions.
An example is AlgaeCytes. The company has developed a patented process to sustainably produce Omega 3 oil from a strain of freshwater algae. Omega 3 oils, which cannot be produced naturally by the human body, are in high demand within the food, drink, healthcare, sports, cosmetics, personal and oral care sectors.
Indeed, AlgaeCytes is in negotiations with a number of large corporations involved in some of these markets. In October 2017 it upscaled its commercial production facilities, allowing it to increase production tenfold and meet the needs of larger clients.
AlgaeCytes's multi photo-stage photobioreactor, designed for industrial scale production of microalgae.
Potential for generous returns
The portfolio aims to deliver a return of 1.6x over three to four years. Please note though: returns and timeframes are not guaranteed. Capital is at risk.
Inevitably there will be failures as well as successes.
An example of success is the partial exit of Sky Medical in 2017. The company developed proprietary technology to increase blood flow in the calf. Its flagship device, gekoTM, is used by the NHS to reduce the risk of deep vein thrombosis and has been proven to reduce pre-operative oedema in ankle fracture patients.
In 2017 Deepbridge investors were offered the opportunity to sell their shares in the company. Depending on when they invested, investors received returns equivalent to several times their original investment. Please note, past performance is not a guide to the future.
Hands-on committed management team
The investment team possesses a depth of knowledge and expertise across a range of investment opportunities, including medical technologies, renewable energy, disruptive growth technologies, and specialist software sectors. Ian Warwick has firsthand experience of building up, turning around, selling and floating businesses.
Investee companies have access to these resources. Typically Deepbridge takes an active role (not just a board seat) to guide, mentor and counsel management teams.
In addition, the members of Deepbridge’s investment team are required to invest their own money in the portfolio companies. If the portfolio loses money, they lose money, so there’s an added incentive to apply a tight investment selection process and help businesses achieve their objectives.
What to consider next
Please visit the offer page to download the offer documents, read more (including risks and charges) and apply online.
EIS / SEIS investments are high-risk so should only form part of a balanced portfolio and you should not invest money you cannot afford to lose. They also tend to be illiquid and hard to sell and value. Before you invest, please carefully read the Risks and Commitments and the offer documents to ensure you fully understand the risks.
The value of tax benefits depends on circumstances and tax rules can change.
Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.
Read more and apply online
Read more about this offer, including the risks and download all the offer documents. You can apply online in minutes.Go to offer page