o2h Therapeutics EIS/SEIS Fund
The o2h Therapeutics fund will invest in a mixture of SEIS and EIS qualifying companies in early-stage biotech therapeutic and related AI opportunities.
- Focus on early stage biotech therapeutic opportunities around Cambridge
- Target return 2.5x, net of fees, with exits expected after 5-8 years (not guaranteed)
- Target 7-8 portfolio companies (not guaranteed)
- Investments should be deployed within 12-18 months
- Allotments expected in the 2019/20 tax year
- Minimum investment £25,000
This newly launched SEIS/EIS fund is managed by brothers Sunil Shah and Prashant Shah. They have both been active in the early stage biotech community since in the mid-1990s and the o2h group has been collaborating with early stage biotech companies since 2004. The firm’s principal, Andy Morley, has substantial experience in big pharma.
The fund will source deals through a number of channels including angel networks, top UK universities, industry conferences and an extensive range of personal contacts built up by Sunil, Prashant and the rest of the management team.
o2h believes early stage businesses typically need more than just money to thrive and so will provide ongoing support and guidance to portfolio companies. They will look to offer incubation via the o2h SciTech Park in Cambridge and the option of further assisting research via o2h Discovery in Ahmedabad, India. Cambridge, alongside Oxford and London, is a hotbed of academic research and is also the new home of Astra Zeneca’s global headquarters.
o2h will look to invest in companies that focus on therapeutic drug opportunities or technologies that enable drug discovery. There is an emphasis on Artificial Intelligence.
The o2h founders have committed to personally invest 10% of the first £2 million deployed and then a minimum of 2.5% of every investment thereafter, so their interests are aligned with investors’.
An example of a company backed and support by o2h’s management team is Exonate which aims to improve the treatment of patients with age-related retinal diseases. Exonate is a spin out from the University of Nottingham in 2014 and has attracted funding from a range of partners including IP Group and Wellcome Trust. Other examples include companies that are looking to tackle cancer, Alzheimer’s, diabetes and heart disease.
o2h will aim to deploy capital within 12-18 months but this is not guaranteed.
The offer is only open to investors who successfully apply to become an elective professional client of o2h Ventures and have the knowledge and experience to understand the risks. There is no Key Information Document.
Risks - important
The biotech sector is typically considered high risk due to the potentially binary nature of outcomes for companies. If a drug or treatment proves to be unsuccessful, the potential for the company to then find a new application for their product is generally lower than in other sectors.
This, like all investments available through Wealth Club, is only for experienced investors happy to make their own investment decisions without advice.
While the management team have previous success investing in this sector, this is the first iteration of this fund and the first time o2h has invested within an SEIS/EIS framework.
SEIS and EIS 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.
Tax rules can change and benefits depend on circumstances.
This fund invests in early-stage businesses which are more likely to fail than larger ones, so you should expect a number of failures in the portfolio.
Fees and charges
A summary of the fees and charges is shown below. Please see the provider's documents for more details.
|Full initial charge||4%|
More detail on the charges
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- Life sciences
- Target return
- Funds raised / sought
- £10.0 million sought
- Minimum investment
- Allotting in 2019/20