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Bethnal Green Ventures

Tech for Good SEIS/EIS Fund

Investment product details

The Fund is an Unapproved Collective SEIS/EIS Portfolio managed by Midmar Capital LLP, which is independently authorised and regulated by the FCA, as a discretionary investment management service. The Investment Advisor is Bethnal Green Ventures


Who can invest?

The availability of the Information Memorandum is restricted to certified high net worth individuals, self-certified sophisticated investors, and investment professionals as defined in Article 19 of the FPO.

Investment in the fund is available to professional clients only.


Financial and social return

The fund is focussed on early stage companies with high-growth potential, which seek positive impact on society or the environment through digital and other technologies. These will be identified primarily from applications to Bethnal Green Ventures’ accelerator programme.

The Fund aims to realise a return for investors of £2.00 for every £1.00 subscribed (net of all fees; before any tax reliefs). There is no and there can be no guarantee of returns; capital is at risk.


Minimum initial investment amount

£20,000, at the discretion of the Investment Manager and Investment Advisor


Maximum investment amount

There is no maximum.

The Seed Enterprise Investment Scheme offers a number of tax reliefs to investors, which may include individual income tax relief of 50% of the amount invested up to a maximum of £100,000 per tax year per investor

The Enterprise Investment Scheme offers a number of tax reliefs to investors on up to £1m of investment made into eligible companies per tax year.


Target size

Minimum fund size is £650,000 (including £90,000 raised as Pilot Fund).


Closing and opening dates

The first close of the fund is midnight on 5th April 2019.

The fund is likely to re-open later in the year. Those who would like to register their interest for when the fund re-opens can do so on the Bethnal Green Ventures website here.


Allocation policy

Each investor will have their own portfolio of investments. At each close of the fund the manager will aggregate investors’ subscriptions in the relevant period (being the period since the launch of the fund in relation to the first closing date and the period since the previous closing date in relation to all subsequent closing dates). Following each close the manager will allocate investments among investors that have invested in the fund during the relevant period based on the proportion of each investor’s subscription to the aggregate amount raised in the relevant period.

In the event that any of an investor’s subscription remains un-invested at the close of the fund following the close in relation to which the subscription was accepted, the investor will be given the option to have the un-invested subscription returned to them or aggregated together with the subscriptions accepted in the most recent close of the fund and invested in proportion to those subscriptions.

In terms of deployment the fund is targeting to have investors fully invested in 12–18 months.


Diversification

Each investor will typically be invested in six to twelve enterprises. No more than 25% of an investor’s commitment will be allocated to any one enterprise.


Fees payable to purchase this product

Set up and management fee

A one-off initial fee of 10% of your subscription is payable to the Investment Manager. This will cover the set up and on-going operation of the Fund.

Annual charge

None.

Hurdle and performance fee

Performance fees of 20% will be payable to the Investment Advisor on aggregate proceeds arising from an investment after a hurdle equating to a 1.1x return on gross subscriptions invested.

In other words, after each Investor receives £1.10 for every £1 subscribed, a performance fee equal to 20% of any further returns (plus VAT) will be payable to the Investment Advisor.

Costs and expenses 

None. However investor requests over and above the day-to-day running of the Fund, for example transfer of stock, will be charged to the investor on a per fee basis.

VAT

All the above fees are exclusive of any applicable VAT.


Getting your money back

There is no and there can be no guarantee of any return of funds to investors but the Manager will seek to realise Investments over a period of seven years to ten years from the date on which they were made.


How secure is your money?

Although the Fund has target returns, there is no guarantee that these or any returns will be made. Neither the Investment Manager nor the Investment Advisor make any representation or warranty as to any returns which may or may not be made. You accept that any statements made in the Information Memorandum or elsewhere in respect of target or anticipated returns are aspirational and cannot be relied on.

The performance of the Fund is dependent on the availability of suitable and appropriate Portfolio Companies and the ability of such companies to perform in line with their respective business plans and to achieve anticipated investor returns at the time of realisation. Portfolio Companies may fail, investments may be realised for substantially less than the acquisition cost, or they may be impossible to realise at all. Portfolio Companies may accept other equity or debt capital which ranks higher than the Fund’s investments in an insolvency situation. The value of shares can fall as well as rise and investors may not recover the full (or indeed any) of the amount of the Funds invested. Investors should only consider investing if this is a risk they can afford to bear.

The subscription for shares in the Portfolio Companies and the performance of those shares may not be covered by the Financial Services Compensation Scheme or by any other compensation scheme depending on whether the complainant is an eligible complainant under the FCA rules.


Voting rights

Investment in the BGV Tech for Good SEIS and EIS Fund does not confer voting rights into the investee businesses.

Find out more and register your interest at BGV’s Tech for Good SEIS & EIS fund website

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