Velocity Technology EIS and SEIS funds

This SEIS and EIS hybrid fund has a focus on innovative consumer technology businesses. 

Highlights

  • Focus on consumer technology startups with scale up potential
  • Choice of SEIS or EIS or both
  • Target Return of £1.75 per £1 invested (not guaranteed)
  • Minimum investment £25,000

The offer

The fund is a partnership between Velocity Capital Advisors, the investment consultant team, and Thompson Taraz, the investment managers. The team is headed by Rajeev Saxena and Bil Bungay. 

Each fund expects to invest in ten companies, however, this is dependent on whether the fund achieves its targeted raise. Investors will be offered a minimum of three investments. 

This is a relatively new offer which launched in 2016.  Of the investments made to date, Velocity has already seen a partial exit from its 2016 SEIS Consumer Technology Fund through a single company, Snatch. 

Snatch 

Snatch is a virtual GPS-based treasure hunt, where players collect prizes by visiting specific coordinates. Is a game that uses GPS/Geolocation to place mystery parcels onto participants’ smartphones. Snatch’s ambition is to become the world’s largest commercial treasure hunt. It is in effect Pokémon Go but with brand and cash prizes as opposed to Pokémon characters for users to collect. Once the parcels have been held for a minimum of 6 hours, they are revealed and the players can redeem them both online or at retail locations. Prizes can be anything from pizzas to a holiday to a car or larger sums of money.  Past performance is not a guide to the future. 

Other examples of current investments held within the funds are detailed below. 

iTAR 

The iTAR combines mobile functionality with music software allowing consumers to turn their devices into instruments. The project is designed for beginners and experienced musicians alike and provides a transportable and accessible design to entice a wide market. 

Pad

Launched on the 1st July 2017, Pad is the UK’s first fully-mobile letting system. The app allows tenants and landlords to connect and communicate without the need for expensive agency fees. Pad now boasts over 15,000 pre-registered renters and claims that a landlord can have their property rented within an hour of its listing. 

Next Up

Building on the success of other content streaming platforms, Next Up offers an online subscription service that provides exclusive Stand Up comedy performances. With new shows released every week, Next Up delivers an extensive collection of both breakthrough and well-established comedians to a dedicated audience. 

Target return and exit strategy

The target return is £1.75 per £1 invested although this is not guaranteed. Exit is expected after four years, but this is not certain. The preferred exit strategy for subsequent companies would be to list on the AIM market, however, other exit strategies will be considered.

Risks

These very high-risk early-stage businesses are more prone to failure and investors should anticipate at least one failure (if not more) in each portfolio. 

These are investments in unquoted companies which are illiquid and capital is at risk. Investors should not invest money they cannot afford to lose. 

The value of tax benefits depends on circumstances and tax rules can change.

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%
Wealth Club initial saving 0%
Net initial charge through Wealth Club 4%
Annual charge 3%
Performance fee 25%

More detail on the charges

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. 8 August 2018

The details

Type
Fund
Sector
Technology
Target return
£1.75 per £1 invested
Funds raised / sought
-
Minimum investment
£25,000
Deadline
Discretionary

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