British Design Fund 2 SEIS

Closes 31 December

The British Design Fund 2 is an SEIS portfolio seeking to raise up to £2 million.

Highlights

  • Invests in the product design and manufacturing sectors
  • The UK has the second largest design sector in the world
  • Investors will hold around five portfolio companies
  • Target Return of £3 per £1 invested after six years - not guaranteed
  • £10,000 minimum investment

The offer

This is the second iteration of the fund which targets innovative companies that have strong intellectual property and set out to solve a defined problem. The fund is looking to provide not only a cash injection to the investee companies, but also expertise and mentoring to help these businesses grow.

The team, headed by John Mathers (former CEO of the Design Council) and Damon Bonser, has close partnerships with a number of accelerators such as Twenty20 Mentoring, Design Council’s SPARK, the Central Research Laboratory and other advisors to help grow portfolio companies. 

Examples of previous portfolio companies

Please note, these are examples only: new investments will be made in other similar investments. 

Kokoon Technology

47% of people in the UK struggle to sleep due to stress or worry. Kokoon has developed noise cancelling, smart headphones that are designed to help wearers achieve a better night’s sleep. Kokoon has pre-sales of over £3 million and has attracted the interest of a major airline.

Calla Shoes

Manchester-based footwear company, Calla Shoes offers fashionable and comfortable shoes targeted at the 10 million women in the UK who suffer from bunions. Founded in September 2016, it has had coverage in the Daily Mail and The Times and it already has overseas partnerships in place.

Fees & charges

A summary of the fees and charges is shown below.

Initial charge 5%
Annual charge 2-4%
Administration fee -
Performance fee 20%

More detail on the charges

Risks

These are very high risk, early-stage businesses. By their nature, these firms will be more prone to failure than later-stage, more mature businesses. All of the portfolio companies could fail.

Investors should be aware these are long-term investments and are illiquid. Capital is at risk and investors should not invest money they cannot afford to lose. Tax rules can change and the value of tax benefits will depend on individual circumstances.

Wealth Club aims to highlight investments we believe have merit, but you should form your own view. You should decide based 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. 30 Oct 2018.

The details

Type
Fund
Sector
Consumer
Target return
£3 per £1 invested
Funds raised / sought
£2 million sought
Minimum investment
£10,000
Deadline
31 Dec 2018

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