EIS 2018 report (web)

71 70 DEEPBRIDGE ABOUT THE MANAGER Deepbridge is a different kind of investment manager, growing an enviable reputation for providing tax-efficient investment opportunities based on sector experience of actively managing and growing businesses. We work closely with financial advisers and investors to design innovative products, ranging from investment in technology growth companies to asset-backed renewable energy projects. We also partner with innovative and committed management teams to help UK-based companies realise their potential and become successful leading-edge businesses. Deepbridge operates across three principle divisions: technology innovation, life sciences and renewable energy. Deepbridge Capital LLP was formed in July 2010 as a corporate advisory business, bringing together a unique team of highly-experienced business professionals, with proven operational and financial credentials. The team has a proven track record of working with emerging companies to create value for shareholders utilising a hands-on methodology. OUR DEEPBRIDGE TECHNOLOGY GROWTH EIS OFFER The Deepbridge Technology Growth EIS is an opportunity to participate in a portfolio of actively-managed high-growth technology companies, taking advantage of the potential EIS tax bene ts. A diversi ed portfolio of actively managed high-growth companies seeking commercialisation funding, the Deepbridge EIS invests in technology growth companies that have a proven technology, clear intellectual property and are operating in a high growth/high value market sector. The investment mandate of the Deepbridge Technology Growth EIS is to identify investee companies that are in the early stages of commercialisation, which either possess a particular innovation or utilise an innovative technology- based process that has a signi cant high growth opportunity in new or established markets. Deepbridge takes an active role to guide, mentor and counsel the investee companies. The provision of hands-on operational experience combined with nancial expertise can materially mitigate the investment risk borne by the Investor, along with comprehensive due diligence on investee companies. SHARE PRICE CHANGE SINCE INITIAL DEEPBRIDGE SUBSCRIPTION (DEEPBRIDGE TECHNOLOGY GROWTH EIS) ALGAECYTES ARBNCO METIX STENT TEK SURVEYME ZILICO LIVERPOOL CHIROCHEM SKY MEDICAL TECHNOLOGY 600% 500% 400% 300% 200% 100% 0% DOWNING ABOUT THE MANAGER Downing is a leading investment management firm, established in 1986. Since then, we have raised some £1.7 billion from more than 35,000 investors to support smaller UK businesses that may struggle to find traditional finance. We currently manage c.£1 billion of funds, of which almost £250 million is in EIS-qualifying investments. Our investment team comprises more than 40 executives with extensive expertise and a network of connections in a variety of sectors. We believe this gives us a competitive advantage in terms of deal flow and allows us to build lasting partnerships with excellent management teams. We seek to manage risk and to provide some diversification across our products and services by investing in a variety of opportunities. Our due diligence process ensures we understand the companies we’re investing in and that the management teams’ interests are aligned with our investors’. We believe these core values set us apart from our peers in the alternative investment market. OUR EIS OFFER Downing Ventures EIS invests in high-risk, high potential return opportunities, focusing on early-stage UK technology companies in a broad range of sectors, including enterprise software, health technology and e-commerce. In return, investors can access attractive tax reliefs, including 30% income tax relief in the current and previous tax year (via carryback). As is the nature of early-stage companies, some may succeed while others fail. To manage risk, we aim to spread investment across a portfolio of 12 - 15 companies, where possible, across a variety of sectors. We analyse a high number of opportunities and conduct thorough due diligence before making an investment. In 2016, our team analysed around 40 new investment opportunities every month – proof that there is no shortage of talent, creativity and entrepreneurship in the UK. We seek to provide an opportunity to exit between four and eight years from the date shares were originally acquired (please note that this is a target and is not guaranteed). ENTERPRISE SAAS HEALTH & WELLNESS LIFE SCIENCES E-COMMERCE EDUCATION TECH HR TECH LEGAL TECH PROSTHETICS TECH SEARCH ENGINES 51% 5% 3% 3% 3% 14% 11% 8% 3% DOWNING VENTURES EIS PORTFOLIO BY SECTOR* Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. The availability of tax reliefs depends on investee companies maintaining their qualifying status. Investments in unlisted smaller companies will involve greater risk or volatility than those in larger, more established companies. (*correct as at 22 January 2018). INVESTMENT CASE STUDY Founded in 2015 by entrepreneur Tamara Rajah, Live Better With is a healthcare platform aiming to help people with long-term medical conditions (predominately cancer), focusing on non-medical products that make day-to-day life better for patients. The company curates and creates products, services and content that help its users with their symptoms and side effects. Live Better With launched in the UK and the US and received encouraging early traction. It has built up a community of more than 30,000 patients and carers to date. In 2016, Downing Ventures EIS joined a £1.6 million funding round, which has enabled the business to continue extending its reach to people living with cancer around the world. The last six months has seen the company collaborate with hair loss specialist Browns More Hair Now to open the UK’s first shop for people living with cancer at Guy’s Hospital London. The store sells a range of products from the Live Better With platform. INVESTMENT CASE STUDY Sky Medical Technology Limited has developed the OnPulse TM technology platform, a technology which, at its core, has been proven to dramatically improve blood ow and elevates oxygen levels in the blood. The platform can be used across a variety of indications, displacing both pharmaceutical and device solutions on the market today. The technology has been proven through clinical studies and has received regulatory approval across the likes of the UK, EU, Canada, China and USA. Deepbridge’s funding and input has enabled Sky Medical Technology to increase employment from 2 full-time members of staff to over 30 employees, and enabled growth of revenue from £100,000 to £1.3m. Deepbridge hands-on management approach has assisted Sky with sourcing fundraising from co-funders, has assisted with international licensing advice and is currently advising the business on potential exit strategies in the UK and/or US. Shareholders were offered the opportunity to exit in 2017, with a partial exit resulting in returns to Deepbridge investors of between 2.05x and 4.86x.