Force Over Mass Capital (FOMCAP) has launched a new SEIS/EIS investment vehicle which gives individual investors access to the rapidly growing start-up technology space while allowing them to receive tax reliefs of up to 64% of the capital invested under the Enterprise Investment Scheme.
The accelerator fund aims to close the funding gap between crowd funding and traditional venture capitalists in the start-up technology sector allowing investors to benefit from its explosive organic growth potential. The investment strategy aims to deliver both capital preservation as well as growth which, has historically been a challenge for most SEIS/EIS funds.
The investment team will mitigate the risk associated with investing in start-up businesses by applying a unique risk management and performance evaluation mechanism – an algorithm which analyses the makeup of the founder, the market potential and the business proposition of potential investee companies.
In addition, FOMCAP has a three stage investment approach as to pre-empt the possibility for business strategy dilution of the investee company. Phase one consists of an initial capital deployment of around £150,000, followed by a second tranche aimed at increasing market share, new product development and optimising production process and cost structure. Stage two and three will provide direct co-investment opportunities for FOMCAP investors and external strategic partners.
FOMCAP combines both financial investment expertise and deep understanding of the start-up technology space through the exclusive partnership with Dreamstake, a leading web-based accelerator platform specialising in technology start-ups demonstrating high growth potential with a network of over 10,000 entrepreneurs and a portfolio of over 500 start-ups. FOMCAP also partnered with Sapia Partners, a leading EIS investment manager and corporate finance advisory firm. Sapia comprises a team of highly specialised, senior professionals with expertise in investment banking, principal investments and private equity.
Martijn de Wever, co-founder and Managing Partner of FOMCAP said: “We are in the second technology wave and people should be able to participate in the value creation which results from it. Direct access to the start-up scene has only been available to the ultra-wealthy and we are now filling the gap allowing individual investors to get exposure to high growth technology start-up firms.”
Theo Osborne, also co-founder and Managing Partner said: “The UK is increasingly becoming Europe’s hub for entrepreneurs. The investment opportunity is highly attractive but, equally important, it provides additional incentives for innovative, technology start-up businesses to view London and the UK as the Silicon Valley’s superior rival and therewith add value to the economy.”