Force Over Mass Capital, a specialist technology start-up fund, has launched a Seed Enterprise Investment Scheme (SEIS) – Enterprise Investment Scheme (EIS) fund which will invest in fast growth technology companies.
Aimed at high net worth (HNW) investors, the Force Over Mass Capital SEIS EIS fund will offer the opportunity to invest in technology, through a risk-mitigated portfolio of early stage technology companies with high growth potential and potential tax reliefs of up to 64% of the capital, the firm announced.
The fund aims to raise £15m in subscriptions between now and 31 March 2015.
It is targeting a return £5.00 – £10.00+ for every £1.00 invested with a five to seven year investment horizon.
The fund has a minimum investment of £25,000, and will aim to build a balanced portfolio of up to 40 high growth technology companies in areas such as FinTech, e-commerce, artificial intelligence (AI) and life science.
The fund’s investment strategy aims to deliver both capital preservation as well as growth which, has historically been a challenge for most SEIS/EIS funds, the firm also said.
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By GlobalDataInvestment will be three phases, with an initial injection of between £50k and £125k.
Force Over Mass Capital’s CEO Martijn de Wever said: "London is now Europe’s capital of technology as it continues to attract record numbers of UK and foreign technology firms, and has the potential to build a new economic powerbase to reduce the City’s historic dependence on financial services.
"Technology is arguably the UK’s fastest growing sector and the investment opportunity offered by Force Over Mass Capital’s EIS SEIS Fund is highly attractive for investors who are keen to find income while managing risk in a near zero interest rate environment."
Roger Blears, Board Member of EIS Association, also said: "Investing in tech can be a risky business but the returns can also be stunning. SEIS relief allows investors entitled to the full tax reliefs to invest a £1 for a net opportunity cost after full tax reliefs of only 13.5 pence – that’s tech investing with real turbo power."