Jenson SEIS Fund 2022/23

The Fund will invest in a portfolio of entrepreneurial businesses and Jenson will carry out in depth and thorough due diligence of prospective investee companies including rigorous interviews with the owners and extensive analysis of the companies’ business plans.

By investing in a diverse portfolio of investee companies with a focus on a wide range of sectors and geographical locations, the Fund will reduce its exposure to any particular sector or investee company with no more than 25% of any Investor’s Contribution being invested into a single investee company (unless otherwise agreed with the investor).

In addition, once an investment has been made, Jenson will provide investee companies with a range of business support services including general management and strategic advice, financial modelling and, where applicable, the provision of a part-time experienced finance director.

Jenson Funding Partners have successfully exited nine companies across its first two funds, Twizoo, Way2Pay, Acuity, Market Making, Futurium, Raishma and Voneus with a further two share-for-share deals.

Six of these were cash exits. For Market Making, the majority was in cash with some publicly traded stock. Next Fifteen Communications Group Plc acquired the entire issued share capital with a current return of 5.1x investment with a mix of cash and equity (before tax incentives and performance fee), with earnouts this could potentially reach a 12x return.

Additionally, Gloop Labs Ltd has achieved a 3.2x uplift on original cost and Optimicer an 8x uplift on original cost via a share-for-share deal with Whitespace Global Ltd.

Jenson offer SEIS & EIS Funds. The EIS Fund is typically used to provide follow-on funding for our SEIS portfolio companies, bridging the gap between early stage SEIS funding and larger EIS Funds. Our EIS investments typically provide cornerstone investments for larger fudning rounds.

Jenson also offers its portfolio companies a range of support services, either provided by Jenson or outsourced to trusted partners.

Linked to the performance of your investment in the Fund Jenson will be entitled to a performance fee if and when a realisation of an investment in an investee company is achieved and the hurdles set out below are met. Performance fees will accrue on a deal by deal basis where funds are distributed back to investors following a realisation. Where:

a) aggregate distributions to the investor exceed the net cost of the investor’s subscription in the investee company in question by 20% an entitlement to a performance fee of 35% of further funds so returned will accrue to Jenson; and

b) accrued performance fees will become payable once, and to the extent, the investor has received 120% of their ‘Net Subscription’ (Subscription less facilitation fees) to the Fund.

By way of example, where sale proceeds are realised following an exit:

• NO performance fee is payable if the aggregate return from an investee company including dividends and other distributions to an investor is 120p (OR LESS) per 100p (ignoring tax reliefs) invested in that investee company;
• IF the aggregate return to an investor (including dividends and other distributions) from an investee company is MORE THAN 120p per 100p invested (ignoring tax reliefs), Jenson will accrue a performance fee of 35% of all returns from that investee company above that threshold – this fee will become payable if, and to the extent, that the investor’s overall distributions from the Fund are in excess of 120% of the investors’ Net Subscription. The entitlement to performance fees may be paid in cash or structured by way of subscriptions for shares in investee companies by or on behalf of Jenson.

Prospective Investors should be aware that the value of an investment in an investee company can fluctuate. In addition, there is no guarantee that the valuation of an investment will fully reflect the underlying net asset value of the investee company or of the ability to buy and sell the investment at that valuation. Investors should be fully aware of the high-risk nature of scale up investments in early stage companies. In addition, the statements regarding taxation in this document are merely a brief summary and should not be viewed as constituting tax advice. Representations in this Information Memorandum with respect to tax reliefs relate to the generic position of a UK-resident individual taxpayer and do not amount to tax advice to any person. The information below does not purport to be exhaustive. Additional risks and uncertainties, not presently known to Jenson, or which Jenson currently deems immaterial, may also have an adverse effect on the business of the investee companies. Investors should consider carefully whether an investment in the Fund is suitable for them in the light of the information in this document and their personal circumstances. If in any doubt whatsoever, an investor should not invest in the Fund. In any case, it is strongly recommended that Investors seek the advice of their Financial Intermediary or other appropriately qualified professional adviser.

More information on Risk can be found in our Information Memorandum.