o2h Human Health EIS Knowledge Intensive Fund (HMRC Approved)

STRUCTUREFund
MIN. INVESTMENT£25,000
SECTORBiotechnology
CLOSING DATEEvergreen
Risk score
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Synthetic Risk and Reward Indicator (SRRI) is calculated by the fund manager following guidelines set out by the European Securities and Markets Authority (ESMA)

The content below has been provided by o2h Ventures Limited who are authorised and regulated by the Financial Conduct Authority under firm registration number FRN812245.
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Summary

The investment focus of the HMRC approved knowledge intensive ("KI") fund is therapeutic drug opportunities or technologies that enable drug discovery with an emphasis on Artificial Intelligence (AI), with a UK wide geographic scope.

Over the last 15 years the o2h group have been at the forefront of life sciences building a track record of nurturing, supporting and investing in emerging companies, covering biotech, small molecule, biologics, digital and digital health.

Whilst growing their own drug discovery services business since 2005, founders Sunil and Prashant cultivated the skills to spot scientific talent, and cross-reference the quality of the science, early on, well before larger competitors got a look-in. This together with our privileged access to deal flow through carefully cultivated channels and excellent market knowledge puts o2h at the forefront of investing in cutting edge emerging life science.

o2h Ventures is an exciting position for nurturing early stage life science assets through seed investment, working alongside and investing in Knowledge Intensive Companies that can look to generate returns (financial, social and ethical) for investors as part of the post seed and early finance cycle.

The o2h human health EIS KI fund is intended for investors who want to achieve capital growth (rather than income) by investing in a Portfolio of unquoted and/or AIM-listed companies, which have the potential to increase in value significantly. All the Investments we ordinarily make will be in Knowledge-Intensive companies that are EIS qualifying. When you invest in the Fund, you appoint o2h Ventures to invest your subscriptions in companies and manage those Investments on your behalf on a discretionary basis.

We endeavour to take an active role in managing these Investments, as at this early stage these companies often require more than funds to succeed. We will seek to embed these companies into an o2h-curated innovation ecosystem where possible to allow these potential companies to create value and achieve the best possible exits for investors.

Highlights

  • o2h Ventures aims to build investors an initial Portfolio of 5-10 unquoted and/or AIM-listed companies.
  • o2h Ventures's two part investment focus of Access & Incubation, providing unique opportunities and reducing investment risk by being deeply involved.
  • The first Knowledge Intensive EIS Fund approved by HMRC
  • Dedicated to investing in early-stage biotechnology and therapeutic opportunities

Key team

Dr Andy Morley - Principal

Creative and innovative medicinal chemist with extensive knowledge and expertise. Twenty five years experience working in the pharmaceutical industry.

Prashant Shah - Managing Partner

Prashant is also the co-founder of o2h Group which has three core business segments covering ventures, discovery and technology. The team at o2h is curious about seeding new ideas at the intersection of life science and technology.  o2h is located out of two proprietary research centres in the UK and India which have been purpose designed for seeding early stage innovation. Prashant has previously co-founded companies in the life science and technology sectors and began his career with the Strategy group of Accenture in London where he worked across various industry groups. Prashant has a BEng, MSc and an MPhil in Management from the University of Cambridge.

In addition Prashant is a regular judge and panelist at various events in the Life Science and Healthcare sector including the Biotech and Healthcare Venture Creation weekend held at Cambridge Judge Business School to give students, entrepreneurs and professionals the chance to pitch their ideas in front of investors and industry peers. 


Sunil Shah - Managing Partner

Sunil Shah is a serial entrepreneur having begun his career in the Life Sciences team at PA Consulting group followed by co-founding two companies in the information technology and life sciences sector. The second of these companies, Oxygen Healthcare Ltd was fully acquired by Piramal Enterprises Ltd (BSE: PEL) in 2013. Since this time, Sunil has co-founded and is CEO of the o2h Group of companies which is building an ecosystem to support early stage Biotech Therapeutic companies.


The DNA of o2h Group is centred around the nurturing of its people, values and culture, it reflects in the way o2h works with each other, as well as our collaborators and partners. This includes o2h Ventures, an HMRC approved Knowledge Intensive EIS fund that provides pre-seed and seed funding to Biotech Therapeutics & AI; o2h Discovery, a medicinal chemistry focused research services company and o2h Co-Work Labs, a 2.7Acre Science Park under development in South Cambridge that seeks to build a vibrant community of Biotechies across three buildings, 2 of which are grade II listed of which one is an old Mill. 


Sunil has won the UKBAA Angel Investor of the year award in 2019 as well as the OBN Special Recognition Award for his significant contribution in the Life Sciences Industry. He serves on the Board of the BIA as well as Cambridge Angels. He is either Chairman, Non-Executive Director, Board Observer or an investor in over 20 UK Biotech companies which include: Acacia, Arecor, DeepMatter, Exonate, Five Alarm Bio, In4Derm, Metrion, Opal Oncology, Oppilotech, Privitar, Sentinel, Small Pharma, Somaserve, Spirea, Stemnovate, Talisman, Turbine, Oxford Drug Design and Phoremost. Sunil has a degree in Biochemistry from Keele and an MBA from Cambridge University. 


Kirsty Greenwood - VP - Business Development

Kirsty has worked in the alternative finance and EIS space for the last 15 years, working with several leading alternative investment houses providing her with diverse exposure to multiple investment sectors. 


Over the course of her career she has been responsible for cultivating relationships with a network of sophisticated private investors, partners and introducers providing them access to tax efficient, equity and debt opportunities.


Previously she was COO of an independent investment specialist which provided Financial Advisors, Accountants and Private Banks with an independent view of the media market, expanding into property and renewable energy.  Additionally, Kirsty also spent 6 years at a mid-market Investment Manager where she gained experience in business operations, financial compliance and working directly for the family office supporting the business.


Exit strategy

o2h Ventures will seek to exit investments after 3 years to avoid losing EIS reliefs. The Fund may hold investments longer with a view to achieving a better exit. For similar reasons the Fund may exit businesses earlier than 3 years notwithstanding EIS reliefs might be lost.

Investment strategy

o2h have broadly grouped the planned therapeutics investments by category and field to identify a few of the possible areas of high scientific or market interest areas such as immuno-oncology, genomics or anti-ageing.

The investment strategy is to invest at the pre-seed or seed stage and play an influential role until the Series A.  A key part of the strategy is to build close relationships with the portfolio companies and ultimately provide them with the finance as they achieve certain milestones and grow.  O2h endeavour to take an active role in managing these investments, as at this early stage these companies often require more than funds to succeed.  o2h will seek to embed these companies into an o2h-curated innovation ecosystem where possible and allow these potential companies to create value and achieve the best possible exit for investors.   

o2h may also invest in the Series A depending on the risk/return however, o2h are unlikely to invest beyond that.  o2h invest into therapeutic focused companies and mix the portfolio between pure play drug discovery therapeutics such as Exonate; those which provide a service and generate revenues to enable the development of therapeutics such as Metrion and Qkine, and those which support the therapeutics through technology (digital, AI, ML) such as Turbine, Pharmaenable. 

The shift in focus of the large pharmaceutical companies from innovating in-house to acquiring or licensing innovation externally, often early in development, in a highly competitive market for these sought-after assets, coupled with the tax relief that the EIS schemes offer, makes for a potentially attractive investment rationale.

Fee summary

When you commit to the Fund, o2h will ask you to transfer payment of your full commitment to the Fund (your “Subscription”) plus any intermediary fees that is not covered within your Initial Fee (see below) (altogether your aggregate payment is called your “Advance Payment”).

From your Subscription o2h will take:

• 2% Initial Fee + VAT and

• 2% (One years') Annual Management Fee + VAT 

Annual Management Fee 

As highlighted above, only the first year is taken upfront, thereafter o2h will charge the Annual Management Fee for up to 5 years interest free. 

The Fund's annual management charge includes the day-to-day custodian charges (annual administration charge and dealing charge paid for the sale and purchase of shares).

If, after the first 3 years, the value of your investments held in portfolio

companies decreases below your subscription amount invested in such companies, o2h will decrease their Annual Management Fee thereafter commensurately. However, o2h groups Annual Management Fee will not change if the value of your subscription amount invested increases. 

EIS relief

The fees and charges which are taken from your Subscription as outlined above mean that 96% excluding VAT (or 95.2% including VAT) should be invested into underlying portfolio companies. Note, EIS relief will only be available on the amount of your subscription actually invested in portfolio companies, it is not available on monies used to pay the Fundʼs fees. 

The above is based on non-advised fees.  See 'Fees' for advised investors fees. 

Risks

Investors should be aware that investing in unquoted and/or AIM listed companies is high risk and, consequently, an investment in the Fund may not be suitable for all Investors. If an Investor is unsure, he should not subscribe to this Fund. In any event, it is recommended that an Investor seeks specialist independent tax and financial advice prior to subscribing.

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