Velocity SEIS Technology Fund 4

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Velocity looks to work with companies that are innovative, can scale quickly and provide a product or service that is genuinely useful to their customers, whether B2C or B2B

  • £10,000.00
    MIN. INVESTMENT
  • Evergreen
    CLOSING DATE
  • Technology
    SECTOR

Velocity Capital Advisors Ltd is a UK limited company, comprising a specially assembled Management Team and a hand-picked Technology Panel to advise on investment opportunities. The Management Team boasts a track record of finance, fundraising and entrepreneurial success across a range of sectors, disciplines and territories, having raised in excess of £250 million through previous funding vehicles. The Investment Consultant’s Management Team have also personally invested over £3,000,000 in Velocity investee company businesses. The Investment Consultants’ Management Team brings together individuals with proven entrepreneurial track records and expertise across the entire business spectrum; from finance and fundraising, venture capital, marketing, design and brand building, to consumer technology. Between them they combine a thirst for innovation and entrepreneurship with extensive experience of finance and fundraising. The Management Team possesses the expertise, experience and insight to not just identify the right investments, but to nurture and support them on their journey as well.

Application Process Update

In light of events happening around the world, managers have been revising their application acceptance procedures in close co-ordination with Custodians to ensure applications and funds are processed efficiently. Applications no longer need to be sent in the post to process wet signatures. Once you've submitted your application through CoInvestor, a member of staff will contact you directly with the managers simple instructions on who to send your scanned application to.

Highlights

  • SEIS fund focusing on technology enabled businesses
  • “Since its inception, Velocity has been seeking to make investments that offer investors significant capital appreciation opportunities” Michael Whitfield, Chairman, Velocity Capital Advisors Limited
  • Velocity Capital Advisors Limited (“Velocity”) seeks to take an active, not passive management approach with Fund investee companies
  • Velocity looks to work with companies that are innovative, can scale quickly and provide a product or service that is genuinely useful to their customers, whether B2C or B2B
  • Founders have entrepreneurial and marketing backgrounds having founded and/or held senior management positions in Red Bull, BMB and Purplebricks

Market approach

Active Management: Velocity is involved with all portfolio companies, beyond investor Director roles. No additional fees charged for this service beyond the Annual Administration and Marketing Fee and the Performance Fee

Entrepreneurial backgrounds: Velocity’s founders, as entrepreneurs, have all successfully built and exited multiple businesses

Marketing: the founders of Velocity have an emphasis on marketing experience. This can assist in identifying ideas that will resonate with a given target audience and in helping develop marketing strategies for investee companies.

Scalability: once an investee company business is established in the UK, Velocity has the ability to provide access to international markets

“Skin in the game”: over £3.0M of Velocity founders’ own wealth has been invested in Velocity investee companies

Investment strategy

The Investment Consultant believes that the UK Consumer Technology Market currently offers attractive SEIS investment opportunities and it will source opportunities to allow the Funds to invest in companies that, in the Investment Consultant’s opinion, meet the following criteria:

– Have a consumer technology focus

– High growth, capital appreciation potential

– Have obtained advanced assurance of qualification for SEIS tax relief.

The focus on the fund is technology, high capital appreciation potential and job creation as per the sentiment of the recent SEIS Nov 2017 Budget announcement.

To mitigate risk the Fund has the following strategy:

Investor alignment – Velocity have also invested over £3.0m of their own capital to align with investors

Active management approach – all investee companies are actively managed to ensure that key milestones are monitored and achieved

Focus on revenue generation – even though Velocity operates within the technology sector, traditional business values of strong management, revenue generation, profit margins and target audience resonance are applied.

First and foremost, the Investment Consultant will address the issue of target audience demand, given that the number one reason for a start-up failing is a lack of market demand for its product.

Potential Investee Companies will be appraised by the Management Team and the Technology Panel by reference to these qualities and characteristics before due diligence is undertaken and a report prepared for the Investment Manager.

Key team

Bil Bungay - Founder, Creative Director

Bil co-founded Beattie McGuiness Bungay (BMB), an advertising agency that went on to become one of the fastest growing agencies and considered one of the most creative advertising and marketing agencies of the decade. BMB went on to create nationally famous, highly effective campaigns for brands such as: McCain, Tui, Carling, and Virgin Money. Within three years of their establishment BMB had won Marketing Agency of the Year. Bil has a lifelong passion for innovation and creativity. His entrepreneurial spirit, combined with almost 30 years of creative and marketing experience, has helped him bring many ideas to fruition, for example Purple Bricks, and mentoring numerous early stage businesses. As deputy chairman of BMB, Bil maintains a strong connection with the agency he co- founded. Bil is a member of the Investment Committee.

Rajeev Saxena - Founder, Managing Director

Raj began his career in advertising before becoming the Marketing Director of Red Bull Energy Drink, UK & Ireland. He completed an MBA at the I.M.D. in Lausanne and has since founded a series of successful entrepreneurial businesses across a range of industries, including a 200MW wind farm development in Turkey and Soho House Mumbai a franchise business launched in 2018.

Alex Johnston - Director

Alex is an independent app developer and investor operating in the emerging message technology sector. He also serves on the board of The Duke of York’s “Pitch in the Palace” global innovation platform, Tim Berners-Lee’s Web Foundation, Singer Asia, and Freuds - the UK’s leading communications agency, where he was a founding partner. Prior to his current roles, Alex was Executive Vice President of Omnicom - advising on digital strategies and managing their digital incubation initiatives. He was senior communications advisor to PepsiCo Inc. and managing partner at Fleming Media, a rights media acquisition fund.

Exit strategy

Exits likely to be achieved via a sale, disposal or listing of an investee company. A partial exit approach to one or more of its investee companies is the approach so that risk can be mitigated as soon as possible.

NB - the first fund, which started in April 2016, has already achieved a 6.6x cash return in respect of one of its holdings in May 2017 within 13 months of investment. This means that its investors are already cash positive.


Company Name Date of exit Exit multiple

BMB 2008 33x

Freuds 2005 10x

PriceRunner 2002 2.5x

Purplebricks 2015 57x

Snatch 2017 6.5x

Thompson Online Benefits 2016 2000x

Tiffin Bites 2009 15x

UWE 2019 16x

Documents

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The content above has been provided by Velocity Capital Advisors Ltd, an Investment Adviser to Sapphire Capital Partners LLP who are authorised and regulated by the Financial Conduct Authority under firm registration number 565716.