SEIS Fund 2

Regional at seed – global at exit

BRIDGING THE REGIONAL FUNDING GAP – LEVELLING UP SEED-STAGE INVESTMENTS​

Note that Seed EIS is a very high-risk asset class and may not be suitable for all investors. All of your capital invested is at risk.

DSW Ventures manages a series of Seed EIS Funds which invest in seed-stage regional deep technology, software and software-enabled services. The programme was launched in April 2023 and provides the capacity to invest roughly £2m per annum in high-growth start-ups.

The Funds principally focus on early-stage technology businesses and university spin-outs located outside the London-Oxbridge ‘golden triangle’. This under-invested asset class provides the opportunity for superior investor returns driven by lower competition for investments and capital-efficient companies.

Our Delivering from Day One approach delivers real value to our portfolio companies through our experience, focus, commercial approach and network – we target top-tier returns, boosted further by SEIS tax relief.

We are committed to sharing risk with our investors – the partners and staff of DSW contribute over 20% of the private investor commitments to our SEIS and EIS investments.

The DSW Ventures Seed EIS Fund 2 remains open to applications from interested investors – our latest fund brochure is available here.

Contact our partners if you would like to invest or to request further information.

The case for deep-tech investing in the regions

There are more spinouts from UK regional universities than from the Golden Triangle – 86 from Manchester University alone in the since 2011.

There’s real brain-power in the regions – 25 Nobel Laureates from Manchester (ahead of Imperial), 11 from Birmingham, and 19 from Edinburgh. Not a bad haul of brilliance!

If the technology is right then later-stage money will follow…

Critically, there are very few early-stage institutional investors to get these regional businesses off the ground – limited competition leads to superior investor returns.

DSW Ventures SEIS Fund Essentials

Fund Size:

£2m

Target Portfolio:

Estimated five to seven companies per annum

Minimum Investment:

£10,000

Realisations:

Target 3 to 7+ years

Target Companies:

Regional, IP-rich and knowledge intensive businesses

State of Company:

Very early stage onwards – high risk of failure

Cash funds are required only on investment. All fees are contingent on successful investment of your commitment.

SEIS Relief

The SEIS scheme allows for benefits both at investment and exit. The principal benefits are outlined below and are subject to individual status and the qualification of the company and investment.

On investment

On exit

A rebate on income tax of 50% of investment

Capital gains are free from capital gains tax

GCT reinvestment relief reducing other gains by up to 50% of investment

Capital losses, after tax relief, are relievable at the margin rate of income tax

Important note: Seed EIS funds invest in very early-stage companies with a very high risk of failure. Investors should be aware that Seed EIS qualification is not guaranteed and there is a risk that the entire investment could be lost. Investing in DSW Ventures Seed EIS fund is therefore subject to suitability assessments.
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