Tax-Efficient SEIS and EIS Funds Enabling Investors to Access Innovative Technology Start-Ups
Since 1983, Oxford Technology has specialised in investing in startup and early stage technology companies based in and around Oxford. Our latest funds take advantage of SEIS and EIS tax reliefs. Detailed information about performance can be found in our Latest Quarterly Report
Performance Multiple of Investments in OT(S)EIS
(averaged by age, after all fees)
For example, the average subscription between 8 and 9 years old would, on a £100k investment, so far have realised cash back of £90k (as a mixture of tax reliefs and share sales). Additionally, there would be approx. £1.5m of potential payouts due to post-exit future milestones, whose fair (probability-adjusted) value we judge to be approx. £150k. The subscription would also own shares valued at over £380k after all fees. Valuations are all made according to the most recent price paid by investors in the company. If following an investment, things have gone wrong, then the valuation is reduced. But if things have gone well, the valuation is not increased unless there is another funding round.
Our Funds
Oxford Technology manages two funds: our flagship three-year combined SEIS and EIS fund, and a one-year EIS fund. Subscriptions into both funds will be used to acquire new shares in the next investments that Oxford Technology makes, but they have slightly different risk/return profiles.
Through them we typically invest up to £150k of seed funding into SEIS companies, and up to £300k of EIS follow-on funding, whilst taking advantage of the generous tax reliefs and downside protection on offer from the schemes. If you have any questions, please contact us.
SEIS and EIS Start-Up Fund
Our flagship fund invests your subscription over three tax years into a portfolio of ~8 tech startups. In Year 1, we invest a third of your subscription into SEIS companies. In Years 2 and 3, we provide follow-on EIS funding to high-performers. The ability to make follow-on investments is very important. Experience shows that investors who can do so have the best returns, but by investing from day one they can also achieve the highest exit multiples.
EIS Development Fund
Your capital is invested over a single tax year into ~6 select EIS companies which are already in the Oxford Technology portfolio. Companies will have progressed since our SEIS fund and command higher valuations, so the EIS Development Fund offers a slightly lower risk/return potential than the SEIS Start-Up Fund. However, it can make for easier tax planning whilst still providing plenty of scope for significant capital growth.
Question: Why our SEIS funds and EIS Funds?
Answer: Capital Growth AND Tax Reliefs
SEIS Tax Reliefs Summary
- Income Tax bill reduced by 50% of investment
- Income Tax bill reduced further if the business fails - up to 22.5%
- 50% relief against capital gains which is not merely deferred but cancelled
- No tax on Capital Gains from investments
- No inheritance tax on shares after 2 years
- Tax reliefs can be claimed as if the investment had been made in the previous financial year, if the investor wishes
EIS Tax Reliefs Summary
- Income Tax bill reduced by 30% of investment
- Income Tax bill reduced further if the business fails - up to 31.5%
- The payment of tax on a capital gain can be deferred where the gain is invested in EIS shares. The Capital Gain to be deferred can be made three years before, or one year after the investment
- No tax on Capital Gains from investments
- No inheritance tax on shares after 2 years
- Tax reliefs can be claimed as if the investment had been made in the previous financial year, if the investor wishes.
Investor Presentations:
Co-Investment Opportunities
Oxford Technology offers investors the opportunity to make direct follow-on investments into one or more of our portfolio companies raising additional capital. If you would like an invite to future events please subscribe.
On Thursday 1st June, Cryologyx and Cytoswim made presentations seeking additional EIS funding.
