SEED ADVANTAGE EIS FUND INVESTING IN START-UP AND EARLY STAGE COMPANIES

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1 SEED ADVANTAGE EIS FUND INVESTING IN START-UP AND EARLY STAGE COMPANIES

2 CAPITALISE ON THE UK ECONOMIC RECOVERY With bank lending still restricted, in the view of many now is the time to invest in start-up and early stage companies. In this environment it is the smaller companies that generally have the greatest potential for growth, and when this is aligned with the tax benefits of an EIS investment, it is a powerful proposition for investors. A UNIQUE INVESTMENT OPPORTUNITY Seed Mentors have been successfully creating Seed SEIS funds since they were first introduced in In that time we have been approached by more than 500 companies seeking funding. What we discovered is that there are some outstanding new companies with very capable and experienced managers that don t quite fit the Seed EIS criteria. Maybe they have been in existence for more than two years, or they want a bit more funding than 150,000. In today s financial market place even very good companies in this niche have a problem. They actually want too little funding to interest most investors. We now see this as a real opportunity for Seed Mentors, because of the expertise we have built up in evaluating and supporting smaller companies. We also see this as an opportunity for investors to invest in some of the companies that have already been invested in through the Seed Advantage SEIS Funds, as they need further funding for growth and expansion.

3 WHY CHOOSE SEED MENTORS FOR YOUR EIS? There are three compelling reasons why you should choose the Seed Advantage EIS Fund: 1 A PROVEN TRACK RECORD OF INVESTMENT When the Seed EIS was introduced in 2012, Seed Mentors were one of the first companies to launch a Seed EIS fund. Since 2012, the following funds have successfully closed and been fully invested: the Seed Advantage SEIS Fund 1, the Second Seed Advantage SEIS Fund and the Dragon Seed Advantage SEIS Fund. 2 A WIDER SPREAD OF INVESTMENTS Because the Fund will be investing in companies with smaller capital requirements, it means that a wider spread of companies can be invested in. This means that investors get greater diversity in their portfolio, and a greater spread of risk, than is usual for single EIS investments. 3 MENTORS THE CRUCIAL DIFFERENCE Young companies often need more than finance to be successful. They also need high quality and timely advice and support. That is why the approach of Seed Mentors is so different, and critical to the success of the companies that are invested in. It is compulsory for the companies that are invested in to use 20 hours of mentoring a year, across the disciplines of finance and accounting, legal, marketing, HR and IT. Further hours are available at specially negotiated rates. We also provide an independent director for each company. We believe that with the necessary finance and the expert advice when and where it is needed, the companies that are invested in will have every chance of success.

4 The tax benefits The tax benefits of EIS under current legislation are: Income tax relief at 30% No capital gains tax on gains made by the fund Full inheritance tax relief after 2 years Capital gains tax deferral relief Loss relief up to 45% of net investment after income tax relief of 30%, representing total tax reliefs of up to 61.5% of the original investment. Losses of individual investments are not netted off against gains in the portfolio. The investments must be held for three years in order to achieve all these benefits. Seed Mentors At Seed Mentors we know that there are two key ingredients in turning small and start-up companies into successful investments: Choosing the right companies to invest in, with high quality management. That is why only companies that are run by managers who have at least 5 years successful experience in their chosen business sector are considered for investment by the Fund. The right guidance and support when and where it is needed. Seed Mentors has been established as a dedicated mentoring company. We will provide or obtain advice as it is needed for legal issues, taxation, marketing, accounting, PR, IT and financial management. Seed Mentors will be providing up to 20 hours p.a. of free advice where it is needed for each company. By providing this service, Seed Mentors can help Investee Companies to both avoid mistakes, and take advantage of business opportunities

5 SEED ADVANTAGE EIS FUND Focused on start-up and early stage companies Investing in companies with real growth potential and experienced managers Practical support and mentoring from the expert team at Seed Mentors Co-invest alongside experienced business angels Income tax relief of 30% plus CGT and IHT benefits IMPORTANT NOTICE The information in this document has been prepared by Seed Mentors Limited ( Seed Mentors ) and is intended for general information purposes only. This document is intended only for the recipients to whom it is directly provided by Seed Mentors (being persons having professional experience in matters relating to investments, such as financial advisers, accountants, lawyers and other financial intermediaries). Persons who do not have professional experience in matters relating to investments should not rely on the contents of this document. No information in this document should be construed as providing financial, investment or other professional advice. This document is not and should not be construed as an offer in any jurisdiction or the solicitation of an offer to buy or sell any securities. Investments in early stage and small to medium sized enterprises and in Enterprise Investment Schemes, are high risk and investors should not invest unless they can afford total loss or if they are likely to require the capital in the near term since such investments can be difficult to realise and any tax reliefs obtained may become forfeit. The tax treatment referred to in this document depends on the individual circumstances of each investor and may be subject to change in future. In addition, the availability of any tax reliefs depends on the investee companies maintaining their qualifying status.

6 FUND DETAILS Fund Name: Fund structure: Fund Manager: Initial target minimum and maximum fund size: Focus: Initial close date: Seed Advantage EIS Fund Discretionary portfolio management service Amersham Investment Management Limited 250,000 up to 1.5 million Qualifying companies who are eligible for investment under Enterprise Investment Scheme legislation 31 March 2017 unless fully subscribed or extended by the fund manager For a copy of the Information Memorandum and if you require any further information concerning the Fund please contact: Shani Randall on: or s.randall@seedmentors.co.uk or visit: