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- £10,000Min. Investment
- SEISFund Type
- EvergreenClosing Date
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 opportunities 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 SEIS 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 SEIS 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.
- Differentiation: o2h Ventures' two part investment focus of Access & Incubation, providing unique opportunities and reducing investment risk by being deeply involved.
- Diversification: o2h Ventures aims to build investors an initial Portfolio of 5-10 unquoted and/or AIM-listed companies.
- Tax Advantages: If you are a UK tax payer, you may benefit from SEIS tax reliefs on the Investments.
- Memberships: The o2h group are active and visible members of various scientific networks and professional organisations.
- Breakthrough Talent: We recognise the importance of experience in life sciences entrepreneurship, however, we are also aware some of the most disruptive ideas in life science are springing out from a new generation of talent coming directly from university courses, forums and accelerators where a certain fearlessness and fresh thinking has created exciting new opportunities for investment.
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.
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.
o2h Ventures will seek to exit Investments after 3 years to avoid losing SEIS 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 SEIS reliefs might be lost.
The Fund Manager will use its discretion when considering the value and timing of exits and are aware of the 3-year minimum holding period to retain SEIS tax reliefs. It is the intention of the Fund Manager to realise Investments as soon as possible after the 3-year period, but always having regard to the commercial circumstances at the time. Assuming that all Investments can be realised, each investment has a target life of between three and seven years, but there can be no guarantee of this hence investors should consider this as a long-term investment.
Creative and innovative medicinal chemist with extensive knowledge and expertise. Twenty five years experience working in the pharmaceutical industry.
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.
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.
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.
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.
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.
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.
If an intermediary that is appropriately qualified and authorised has provided investment advice in relation to your application in the Fund charges fees (such as adviser charge) for doing so, you can either pay the intermediary direct, or we would be happy to facilitate that payment for you.
If you would like us to facilitate the payment of these agreed intermediary fees out of your Advance Payment, that means the amount used to facilitate the intermediary fees will not be a Subscription to the Fund and will not be available (after internal fees) for investment into companies. This will reduce the amount invested in the Fund and accordingly the amount on which SEIS reliefs may be claimed.
Charges to Portfolio Companies
o2h Ventures reserve the right to charge upfront arrangement, monitoring and, where it has board representation, director’s fees, and other properly incurred and approved expenses, to investee companies in which the Fund invests. The typical fee that o2h Ventures aim to charge will be an arrangement fee of 2% followed by a monitoring fee of 1.5% per year for 3 years. Any board fee or monitoring fee that o2h ventures charge will not exceed £1,250 per month. The cost of all deals that do not proceed to completion will be borne by o2h Ventures. VAT will be added where applicable.
The content above has been provided by o2h Ventures Limited who are authorised and regulated by the Financial Conduct Authority under firm registration number FRN812245.