The fund’s investment strategy is to invest in a diverse portfolio of SEIS Qualifying companies, focusing on UK robotics start ups.
Positives: The only SEIS fund to focus solely on investments in robotics and Artificial Intelligence (AI), an area that is extremely fast growing.
Issues: The opportunities and risks within the nascent robotics industry are currently hard to quantify because little company data has yet been generated.
Positives: The Investment Manager Team: The Mentor team at High Growth Robotics have extensive experience in the field of robotics and AI.
Track record: Although backed by experienced people, this is a new fund with no track record.
Nuts & Bolts
- Duration: The fund will close before the end of FY 2016/2017.
- Diversification: The manager expects to provide a minimum of 5 investments in the fund spread across different sectors in which robotics is growing quickly.
- Valuation: As the fund will consist of very early stage companies, there will be little or no change in the valuation. In the later stages of the fund (after year three), valuations will be provided on a six monthly basis.
- Fees: Combination of direct fees and company charges.
Performance fee: Charged on a per company basis at 25% for returns over £1.00 for each £1.00 invested.
- Target returns: The target return of tripling capital suggests a high-risk investment strategy.
- Companies: Supplying risk capital to early stage technology companies at the start of commercialisation. There will be a spread of company returns as the successful investments will do very well, but those who fail may do so completely.