We have a strong track record in identifying and nurturing early-stage companies through rapid growth to profitability and we are delighted to reveal our first SEIS investments.
(PRWEB UK) 29 April 2013
Venture capital fund manager Mercia Fund Management (MFM) has announced its first SEIS Fund investments as part of its Mercia Growth Fund 1.
With six further SEIS investments rapidly progressing towards investment completion, MFM is pleased to announce its first two early-stage investments into two companies that have secured the maximum SEIS investment of £150,000 each.
The first company has developed a new method for treating swimming pool water which eliminates chlorine and its disadvantages – including odours and stinging eyes - while keeping swimming pool water clean and safe. Pool owners enjoy substantial energy, water and cost savings since the water is cleaner the pool filters do not need to be cleaned as frequently and the air conditioning load is reduced since chlorine odours are eliminated.
The company has installed the first new system in an international hotel chain pool in the UK with impressive results and will continue its roll out across public pools in the UK and the rest of Europe.
The second investment is a life science, diagnostics company that will produce a unique range of kits for the analysis of the biological activity of monoclonal antibodies (widely used for the treatment of disease in man) and related drugs. The company was founded by the successful serial entrepreneur Geoff Hale (founder and ex CEO of BioAnalab – sold to Millipore) and Alice Harrison (senior scientist from BioAnalab) after they spotted a new and underserved opportunity. The investment was needed to complete the development of their first kit.
Mercia Growth Fund 1, the first hybrid fund offering EIS and SEIS opportunities, raised approximately £2 million. Collectively with Mercia Growth Funds 1 and 2 (hybrid EIS and SEIS funds), MFM oversees arguably the largest SEIS discretionary funds in the UK.
Dr Mark Payton, Managing Director of Mercia Fund Management commented: “We have a strong track record in identifying and nurturing early-stage companies through rapid growth to profitability and we are delighted to reveal our first SEIS investments. Our partnership with Forward Group and growing funds under management mean that we are actively looking to work with more SEIS companies, especially as banks fail to lend money to fund new businesses."
- MFM targets its SEIS investments primarily at early-stage companies requiring growth funding. SEIS qualifying companies meet the following criteria:
- active trading has ideally commenced
- the business is less than two years old
- with fewer than 25 employees
- with gross assets shall be less than £200,000 and
- must not have already raised cash through EIS or VCT.
SEIS investments offer several key advantages for investors such as:
- 50 per cent income tax relief (no matter what your tax bracket)
- Capital gains tax loss for gains made in 2012/13 and invested in 2013/14
- Tax-free capital gain
- 100 per cent Inheritance tax property relief
- Substantial capital loss relief.
NB: SEIS is Seed Enterprise Investment Scheme and EIS is Enterprise Investment Scheme.
About Mercia Fund Management
Mercia Fund Management (MFM) is a venture capital fund manager with over £17 million under active management.
MFM provides investment growth capital for businesses ranging from early commercial traction through to those seeking expansion or working capital that are trading profitably. Furthermore, MFM can also provide cost-effective incubator accommodation at Forward House in Henley-in-Arden coupled with centralised support services in keeping with its model as a hands-on, supportive investor.
MFM is an FCA authorised and regulated fund manager under FSMA (FRN: 524856).