The Jenson Seed EIS Fund (“the Fund”), a joint venture between the professional services firm, Jenson Solutions, and the fund manager Foresight Group announced today that:
Jenson Seed EIS Fund closed on 30 April 2013 and raised £4.7 million;
Fund aiming to invest in approximately 32 entrepreneurial businesses; and
Jenson Seed EIS Fund 2 will launch at the end of May 2013 to raise an additional £5m.
The Jenson Seed EIS Fund has raised £4.7 million to invest in early stage UK business opportunities.
Paul Jenkinson, Managing Partner of Jenson, says “We are absolutely delighted by the response we have had from investors in backing our fund. We are seeing a large number of high quality investment opportunities and coupled with the attractive tax breaks this is an excellent time to invest in entrepreneurial businesses.”
Jamie Richards, Partner at Foresight Group LLP says “We believe the Jenson Seed EIS Fund provides a valuable source of additional early-stage capital for entrepreneurs in the UK. Over the last few years early-stage companies, which are the lifeblood of the UK economy, have increasingly struggled to raise funds and we believe the Jenson Seed EIS Fund is the type of fund that has been needed for some time.”
Seed EIS was launched by the Treasury and HMRC last year and encourages investors to fund early stage companies with generous tax breaks. In 2012/13 fund managers raised approximately £20 million of Seed EIS funds. The Jenson Seed EIS Fund is not only the second largest Seed EIS fund but it is also one of the only pure Seed EIS funds that is supporting entrepreneurial companies throughout the UK and across all sectors.
The Fund will be investing into early stage Seed EIS qualifying businesses during 2013 and is interested in seeing opportunities from entrepreneurs who have businesses that can show significant progress in its five main assessment criteria:
1. Management – a dynamic and committed entrepreneur(s).
2. Business Concept – a business that can make good margins, have a defensible market position and can scale quickly without substantial additional funds.
3. Momentum – a business with a great deal of commercial momentum and this usually means post revenue or about to make its first sales.
4. Risk – a relatively low risk proposition meaning low technical, financial and commercial risk.
5. Exit – a business that can be sold in time so that investors can realise a strong exit.
Entrepreneurs who believe their business opportunities match the above criteria are invited to apply to the Fund by contacting firstname.lastname@example.org supplying a full business plan and contact details.
Second Fund to be launched in May 2013: Following on from the current Fund, we will be launching a second fund (“the Second Fund”) at the end of May 2013 with the same objective of investing in and supporting entrepreneurial high-growth businesses across a range of qualifying sectors. Jenson aims to be a long-term provider of seed funding to entrepreneurial businesses utilising the Seed EIS tax breaks and will therefore aim to have a Seed EIS offering available to investors at all times. We feel that there are a large number of exciting entrepreneurial companies in the UK that are struggling to raise seed capital and we feel we can help plug this equity gap. The types of opportunities we are seeing and funding are exactly the types of young early stage businesses the Government and HMRC designed the Seed EIS scheme for.
Notes to editors:
The Jenson Seed EIS Fund is a joint venture between the professional services firm Jenson Solutions and the fund manager Foresight Group. Further information about Seed EIS and the Jenson Seed EIS Fund is available by contacting us on 020 7873 2122 or SEIS@jensonsolutions.com or, alternatively, look at the website at www.jensonseedeis.com.
About Jenson Since 2001 the partners of Jenson Solutions have provided numerous companies with financial and operational support to help them grow and develop, with the aim of taking them from where they are today to where they want to be. Jenson provide high quality services such as portfolio and interim finance professionals, mergers and acquisitions advice, corporate finance advice and accounting and financial modelling services to companies both large and small. A key focus of Jenson Solutions has been to support small businesses from start up through their life cycle. When the government announced their plans for the Seed Enterprise Investment Scheme (‘Seed EIS’), Jenson saw an opportunity to work with Foresight to create a fund enabling us to support many of the businesses that we work with and would like to work with in the future.
About Foresight Group Foresight is an independent alternative asset manager, which focuses primarily on investments in unquoted UK and European companies or projects and offers investors exclusive access to attractive income and growth opportunities. Foresight has in excess of £650 million assets under management across a number of funds, including Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
About the Seed EIS tax scheme The Seed EIS scheme was announced in the Budget 2012 and offers investors a 50% income tax relief on investments plus a 100% capital gains tax wipe-out relief for investors who have a capital gain during the 2012/13 and a 50% capital gains tax wipe-out for investors with a capital gain in 2013/14. Investors can claim relief on £100,000 of investments per tax year and also benefit from loss relief on investments that fail. In order for companies to qualify as Seed EIS qualifying companies they must have traded for less than two years; have less than £200,000 of gross assets; less than 25 employees; and have not raised funds from other schemes such as EIS. Companies can raise a maximum of £150,000 from Seed EIS and some sectors are not qualifying (such as capital intensive sectors and financial services).