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Symvan launches third SEIS fund

5 Jan 2018

Symvan Capital is proud to announce the launch of its third SEIS fund – the Symvan Technology SEIS Fund 3.

The Fund will be raising ca £1.5 million to invest into SEIS qualifying technology businesses over the next 18 months, continuing the investment strategy of Symvan's previous two SEIS funds.

 

 

 

 

 

At Symvan Capital, we enter into each SEIS investment with the aim of applying our Life Cycle Approach. We conduct stringent due diligence even at this early stage, because we are looking for future industry winners. We will not invest in a company unless it can demonstrate the potential to return ten times our investment within a reasonable time frame. 

 

In recent years, Symvan Capital has become a market leader in SEIS investing, and has duly won the top SEIS investment manager award from both EIS Association Awards and Growth Investor.  Symvan is widely considered amongst the leading tax-efficient investors in early stage technology companies in the United Kingdom.

The November budget has made it very clear that only investments in true growth companies will be eligible for EIS, SEIS and VCT tax relief.  Technology investing sits right in the middle of HM Treasury’s sweet spot, and Symvan’s latest SEIS fund provides investors the opportunity to participate in a fund which targets a return of £2.85 for each £1 invested over a 5 to 6 year period.
 
We believe that the move away from traditional asset-backed or conservative EIS/SEIS products provides a significant opportunity to investors and wealth managers who need to generate alpha in the difficult few years ahead.  After strong returns from traditional asset classes since the dark days of 2008, the implications of the next stage of the investment cycle will have a profound impact on anyone saving for a pension or simply to generate an acceptable portfolio return.  Global equity markets have had a vigorous expansion over the past decade, but they will be severely challenged in the coming years against a backdrop of rising inflation and rising interest rates.  Of course, rising interest rates mean that the bond market will go into bear market territory by definition and property prices – which are already weakening in London and the South East – look particularly vulnerable.

However, this is fertile ground for investing into early-stage technology companies, and a portfolio of such companies offers the potential to generate high returns, whilst being uncorrelated to traditional asset classes.

Finally, we also believe that Symvan is in the process of disrupting the tax-efficient investing market because we do not charge investors any fees except for a performance fee, which applies only if the investment is successful.  We are seeking to eradicate that which has plagued the tax-efficient market for years – unacceptable returns coupled with unacceptable fees to investors.

 

Kealan Doyle, co-founder of Symvan Capital, notes:

“The promotion of high growth technology companies surely ranks as an objective for any economic policy maker in an advanced nation seeking to thrive in an increasingly competitive global economy.  The United Kingdom has consistently shined as a force for technological innovation and its universities and businesses punch well above their weight on the global scale.  

Given what we know about the investment returns associated with successful high-growth firms and sectors, this potentially offers very attractive investment returns for UK investors.  The risks in investing in early-stage venture capital are high but the UK government has provided tax-efficient incentives that dramatically alter the risk/return trade-off for investors in high growth companies, making such investments an integral part of suitable investment portfolios.  Moreover, the Treasury has recently dramatically revamped the EIS/SEIS/VCT playing field, and only growth company funds are going to be eligible for tax relief going forth.  We see this as enormously beneficial to investors and advisors, as the Treasury is effectively 'nudging' them towards better investment incomes.  Creating alpha in investor portfolios is going to be difficult in the next five years, and we believe that the inclusion of proper venture capital funds should be an essential part of a suitable portfolio.  Particularly the ones that don't charge investors fees!

The world of tax-efficient investing is changing, and Symvan Capital operates at the forefront of those changes.  We are delighted to offer you the opportunity to accompany us on this journey.”

These are two murals that caught our attention on our recent visit to GSVlab's Pioneer Accelerator in Silicon Valley in partnership with Google Launchpad. Their message embodies Symvan Capital's approach to identifying and backing the tech founders of today.

INVESTMENT RISKS

 

An investment in the Symvan Technology SEIS Fund 3 (the "Fund") is subject to a number of risks. Any investment in the Fund should be regarded as being medium to long term and illiquid in nature. All prospective Investors should be aware that as the Fund will invest in unquoted companies, the value of Shares in the Companies can fluctuate. In addition, there is no guarantee that the valuation of Shares in the Companies will fully reflect their underlying net asset value, or that Investors will be able to buy and sell at that valuation or at all. It may be difficult to obtain information regarding how much an investment is worth or how risky it is at any given time and the Manager may experience difficulty in realising the investments (for value or at all). 

The investments described in this communication will not be suitable for all investors. All potential Investors are accordingly advised to consult an investment adviser authorised under FSMA, and an appropriately qualified taxation adviser, prior to making an investment.

Before making any investment decision, prospective Investors should consider carefully the risks attached to an investment in the Fund together with all other information contained in the Memorandum, including in particular, and not limited to, the risk factors described therein. Additional risks and uncertainties not presently known to the Manager or those that the Manager currently considers to be immaterial, may also have an adverse effect on the business or affairs of the Portfolio Companies. Investors should consider carefully whether an investment in the Fund is suitable for them in the light of the information in the Memorandum and their personal circumstances.

 

IMPORTANT INFORMATION

This communication has been approved as a financial promotion in accordance with Section 21 of the Financial Services and Markets Act 2000 by Symvan Capital Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 685262). The registered office of Symvan Capital Limited is New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ, United Kingdom. This communication is only intended for distribution to market professionals, self-certified high net worth individuals and sophisticated investors.

 

Applications for participation in the Funds may be made only on the basis of and using the application form contained in the Memorandum, copies of which are available from the Manager. No reliance is to be placed on the information contained in this communication in making any such application. This material is directed only at persons in the UK and is not an offer or invitation to apply for shares in the Fund nor does it solicit any such offer or invitation.

 

This communication does not constitute tax advice. The tax treatment referred to in this communication depends on the individual circumstances of each Investor and may be subject to change in future. In addition, the availability of any tax reliefs depends on the companies in which the Fund invests maintaining their qualifying status. Past performance is not a guide to future performance and may not be repeated. The value of an Investment may go down as well as up and an Investor may not get back the full amount invested. Investments in small unquoted companies carry an above-average level of risk.

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