FOMCAP launches first SEIS/EIS tech accelerator fund
Force Over Mass Capital (FOMCAP) has launched an SEIS/EIS investment vehicle which gives individual investors access to the start-up technology space while allowing them to receive tax reliefs of up to 64 per cent of the capital invested under the Enterprise Investment Scheme.
The accelerator fund aims to close the funding gap between crowd funding and traditional venture capitalists in the start-up technology sector allowing investors to benefit from its organic growth potential.
The investment strategy aims to deliver both capital preservation as well as growth which has historically been a challenge for most SEIS/EIS funds.
The investment team will mitigate the risk associated with investing in start-up businesses by applying a unique risk management and performance evaluation mechanism – an algorithm which analyses the makeup of the founder, the market potential and the business proposition of potential investee companies.
In addition, FOMCAP has a three stage investment approach as to pre-empt the possibility for business strategy dilution of the investee company. Phase one consists of an initial capital deployment of around GBP150,000, followed by a second tranche aimed at increasing market share, new product development and optimising production process and cost structure. Stage two and three will provide direct co-investment opportunities for FOMCAP investors and external strategic partners.
FOMCAP combines financial investment expertise and understanding of the start-up technology space through the exclusive partnership with Dreamstake, a web-based accelerator platform specialising in technology start-ups.
FOMCAP also partnered with Sapia Partners, an EIS investment manager and corporate finance advisory firm.
Martijn de Wever, co-founder and managing partner of FOMCAP, says: “We are in the second technology wave and people should be able to participate in the value creation which results from it. Direct access to the start-up scene has only been available to the ultra-wealthy and we are now filling the gap allowing individual investors to get exposure to high growth technology start-up firms.“
Theo Osborne, also co-founder and managing partner, says: “The UK is increasingly becoming Europe’s hub for entrepreneurs. The investment opportunity is highly attractive but, equally important, it provides additional incentives for innovative, technology start-up businesses to view London and the UK as the Silicon Valley’s superior rival and therewith add value to the economy.”
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