OTEIS – The Development Fund is a one-year fund that uses the tax advantages offered by the EIS investment scheme. It makes investments in UK science and technology start-ups and spin-outs, which Oxford Technology knows well through the OT(S)EIS – The Start-up Fund.
We have access to a steady stream of EIS investment opportunities because of our close and frequent involvement with so many developing companies. The Start-up Fund makes follow-on EIS investments, but only of the same amount as the first SEIS investment. If the business is developing well, it may want to raise larger sums, so The Development Fund also invests in these opportunities.
If you would like to invest in The Development Fund, please click here.
These are high growth potential companies. However, they have progressed significantly since our initial SEIS investment. The EIS investment is typically to employ more people, to expand the sales force and to increase marketing expenditure. Usually, the technology is working and the first sales have been achieved. Therefore, investment in The Development Fund is slightly lower risk than The Start-up Fund.
Investments are mainly follow-on investments in companies in which The Start-up Fund made the initial investment. The Development Fund invests primarily in companies in our existing portfolio, and also select companies from the Oxford Technology VCT portfolios. As of September 2018, The Development Fund had made 26 investments in 14 companies.
Any investment in The Development Fund will be invested in EIS investments within the current tax year.
In the past, at the request of individual investors, we have invested sums of up to £500,000 in 4-5 EIS investments in a few weeks, typically to meet a particular tax need. At any one time, there are typically 5-6 of our portfolio companies with open fundraising in progress. If you have a particular tax need, please contact us to discuss if we can help.