our unique model
We believe that building a diversified portfolio of seed investments based on winners of our competition series has pioneered a whole new route of equity funding. Our competition funding approach has been deliberately designed to help mitigate the risks of early stage investments.
Widely publicised nationwide business competitions…
Delivering high volume of deal flow to assess
Sophisticated distillation process run by commercial experts…
Surfacing superior entrepreneurs at fair valuations
Oversight from experienced Investor Directors…
Reducing risk & accelerating growth
Creating a ‘mini portfolio’ of EIS and/or SEIS investments…
Creating highly predictable timings for tax reliefs
THE START-UP SERIES FUND
The Start-Up Series Fund enables investors to hold equity in a number of businesses, usually winners of the Start-Up Series competition. All the investments are SEIS & EIS compliant. The Fund is managed by Amersham Investment Management Ltd, who are authorised and regulated by the FCA, FRN 507460.
start-ups reached
Entrants
Finalists
SOURCING AMBITIOUS START-UPS
We’ve teamed up with startups.co.uk, the go-to online platform for entrepreneurs seeking advice for their new business, attracting almost 400k monthly users.
Together, we run the Start-Up Series – the UK’s largest seed funding competition.
The Series is aimed at consumer start-ups: Creating new products & services to buy and the ways that we buy them. The focus is on real products and services, in the consumer space where strong brands can be grown. ‘Tech’ is not being targeted specifically, although technology based disruptions to the target sectors are expected and encouraged as long as they are rooted in consumer insight.
A RIGOROUS DISTILLATION FORMAT
The competition process includes six weeks of distillation and comprehensive commercial due diligence. From an average 95 entrants per month, we filter down to one very worthy winner. This includes plenty of time face to face, to really get to know the team and the business model. A fair valuation is agreed, set to reflect the relative maturity of the business and the requirement for funds.
Experienced Fund Managers Amersham Investment Management then conduct thorough technical due diligence. If investment approval is then granted, the winner receives a seed equity investment up to £150,000.
BEYOND THE INVESTMENT
Along with the investment, winners are contracted to the help and advice of an experienced Investor Director for a minimum of 24 months. Formal bi-monthly board meetings monitor progress and look after the interests of investors. Alongside these is rich informal advice for the entrepreneurs to help them spot risks, exploit opportunities and build momentum.
Each winner is given the kudos and publicity of winning this high profile competition series – helpful in attracting customers, new team members and when raising further funding. Their progress is followed through regular news features on startups.co.uk, allowing readers to follow their journey.
EIS Advantages
PERSONAL INCOME TAX
30% of the investment is reclaimed from income tax owing or paid in the previous or current year
CAPITAL GAINS TAX
50% reinvestment relief directly reduce a CGT bill by half, usually worth 10% of the investment
INHERITANCE TAX
100% exempt, provided investments are held in a qualifying business for two years before passing on
CAPITAL GAINS
All profit on the investment 100% exempt from capital gains tax after being held for three years
COMPANY LOSS RELIEF
If a company fails, the net investment (total less reliefs already claimed) reduces income tax further
SEIS Advantages
PERSONAL INCOME TAX
50% of the investment is reclaimed from income tax owing or paid in the previous or current year
CAPITAL GAINS TAX
100% deferral of CGT liability on gains up to the value of the investment, for the life of the investment
INHERITANCE TAX
100% exempt, provided investments are held in a qualifying business for two years before passing on
CAPITAL GAINS
All profit on the investment 100% exempt from capital gains tax after being held for three years
COMPANY LOSS RELIEF
If a company fails, the net investment (total less reliefs already claimed) reduces income tax further
PERSONAL INCOME TAX
50% of the investment is reclaimed from income tax owing or paid in the previous or current year
CAPITAL GAINS TAX
50% reinvestment relief directly reduce a CGT bill by half, usually worth
10% of the investment
INHERITANCE TAX
100% exempt, provided investments are held in a qualifying business for two years before passing on
CAPITAL GAINS
All profit on the investment 100% exempt from capital gains tax after being held for three years
COMPANY LOSS RELIEF
If a company fails, the net investment (total less reliefs already claimed) reduces income tax further
PERSONAL INCOME TAX
30% of the investment is reclaimed from income tax owing or paid in the previous or current year
CAPITAL GAINS TAX
100% deferral of CGT liability on gains up to the value of the investment, for the life of the investment
INHERITANCE TAX
100% exempt, provided investments are held in a qualifying business for two years before passing on
CAPITAL GAINS
All profit on the investment 100% exempt from capital gains tax after being held for three years
COMPANY LOSS RELIEF
If a company fails, the net investment (total less reliefs already claimed) reduces income tax further
businesses we have found
Our competition approach has unearthed and funded some of the brightest entrepreneurs in the UK.
INVESTOR FEEDBACK
Frequently Asked Questions
We’re not authorised to give either investment or tax advice to investors. The suitability of making an investment in the Fund should be discussed and agreed to by an authorised financial advisor. But there are some common questions from investors which we’ve answered here.
Will I know which businesses I’m investing in?
You will always know which businesses you have invested in – and can join the excitement of watching them progress. Occasionally you will know the businesses before committing to invest in the Fund, but other times you may need to trust our judgement and that of our Fund Manager, Amersham Investment Management. This is because the Fund is invested in tranches, so each investor receives an investment usually spread across three to six businesses. We make the commercial recommendation for which businesses the Fund invests in but the decision to do so or not rests with the Fund Manager. Some businesses are decided early, some later. Sometimes the funding tranche is filled quickly, so you will need to commit to the Fund before all the investments are known.
How often and how will I hear about the progress of my investments?
We co-ordinate the entrepreneurs reporting formally each 05 April and 05 October. There may also be additional updates in between – for example, should there be some great news that just can’t wait, or should the entrepreneur think the investor network might be able to help them.
Can I predict which tax year my reliefs will fall into?
Yes. The timing of your reliefs are dependent on the date the Fund Manager makes the investment and the provision to you of your SEIS3 certificate, for which we ensure the investee companies make timely application to HMRC. We always make clear the intended qualifying tax year for each tranche. Therefore you can plan either to use the reliefs in the current tax year or be able to carry them back (should you have the available allowance) to the previous tax year.
What is the limit on SEIS & EIS investments?
An investor can take the benefits of SEIS & EIS reliefs up to £100,000 per year of SEIS qualifying investment or up to £1,000,000 of EIS qualifying investments (the EIS limit can also be extended to £ 2 million when the extra £1 million is invested in ‘knowledge intensive’ companies).
An investor can also carry back their investment to the previous tax year, if they have unused allowance. Therefore an investor may be able to invest £200,000 at once and qualify for full SEIS reliefs when no SEIS investments were made in the previous year.
Additionally, the limit and reliefs are independent for spouses.
What fees apply?
For investors, there is an annual commercial advisory, reporting & accounting fee of 1.5% of the investment made. This is rolled up until the point of some liquidity being generated into the Fund, either from an exit or from dividends. There are various fees for the investee companies to pay – please see details on page 52 of the Information Memorandum.
What is the minimum investment in the Fund?
The minimum investment in the Start-Up Series Fund is £10,000.
Where are my shares held?
Your shares will be held for your beneficial interest in a nominee account by Woodside Corporate Services. No share certificates are issued directly to investors in the Fund. You will receive details of your beneficial holdings and their value in your six-monthly reports.
