Invest in start-ups turning scientific innovation into commercial success
Oxford Technology has been investing in science and engineering companies for more than 30 years. OT(S)EIS allows investors to acquire shares in a portfolio of innovative early-stage companies, with the potential for significant returns.
"I have been thoroughly impressed with the portfolio of investments you have created for me. As well as showing some extremely positive early successes, these investments are also well distributed and in technologies that I would not normally be able to access." - Current Investor in The Start-up Fund.
High quality investment opportunities
We focus on investing in companies that have been spun out from the science, engineering and healthcare departments of universities in Oxford and London, and from the wider innovation community around Oxfordshire. For information on all of the companies we have invested in through OT(S)EIS, please see the Portfolio page. We receive pitches from many highly credible, ambitious entrepreneurs every year. Your subscription will be used to buy shares in the next investments that Oxford Technology makes. For insight into what we look for in a new investment opportunity, please see our Looking for Investment? page.
Focus your investment on the most promising companies
In the first year after you subscribe, we aim to invest around a third of your subscription into a series of companies that qualify for SEIS reliefs. Over the following two years, we will provide follow-on funding to the companies that have performed well. After three years, you will have a portfolio of 6-10 companies, with more of your capital allocated to those that have shown early promise. Having the ability to make a follow-on investment as a start-up develops is very important. Experience shows that investors who are not able to do this often fare badly.
Strong investment performance
Subscriptions made in every year since OT(S)EIS began in 2012 have made on paper returns that have out-stripped how they would have done by investing the same amount at the same time in a FTSE 100 tracker fund (assuming a dividend yield of 0.9% per quarter). For more detail, please see our performance page. Past performance is not a guarantee of future performance. For up-to-date information on the progress of the fund and each of our portfolio companies, please see our Latest Quarterly Report.
A hands-on approach to investment management
Our team works closely with our portfolio companies to support their commercialisation efforts. We guide founders from a scientific background through the operational challenges of building a business. All of our investments are local to Oxford so we can have frequent informal meetings with the management.
Long term thinking
The big disadvantage of an investment in OT(S)EIS is that it is a long-term investment and 100% illiquid. Exits will surely happen, and we have had a great number since 1983. But we cannot control the timing of exits and a 10-15 year wait is expected. But when they do come, exits will be tax free and outside Inheritance Tax. An investment in OT(S)EIS is ideal for those looking for a long-term, tax-efficient investments and particularly as a means of passing value to the next generation.
Tax reliefs limit risk of losses and boost returns
This investment puts your capital at risk, and you should only invest what you can afford to lose. Investments are illiquid. However, if losses occur their impact is reduced through the SEIS and EIS investment schemes. Depending on the tax circumstances of the investor, this can reduce the losses on a failure to as little as 12.5% of the original investment. Any gains on the winners are tax free. Exact tax reliefs depend on your personal circumstances.
Introductions to investment opportunities
As our portfolio companies grow, they may require more funding that OT(S)EIS alone can provide. When we believe this is still an excellent investment opportunity, we introduce these companies to our investor network. We only do this with companies that Oxford Technology has invested in and that we have been closely involved in as they have grown.
The fund is open for investment at any point during the tax year, with a minimum investment of £15,000. Please click here for the Information Memorandum and Application Form.
The maximum investment is £320,000. Investors wishing to invest more, or who would like all their money to be deployed within the current tax year, should consider an investment in OTEIS - The Development Fund.
Previous Quarterly Reports: