Deepbridge confirms all EIS subscriptions in 2017/18 were fully deployed
25 April 2018
Deepbridge Capital, the tax-efficient investment manager, has today (25th April 2018) confirmed it fully deployed all Enterprise Investment Scheme (EIS) funds raised during 2017/18 within the same tax year.
Deepbridge also confirmed that all subscriptions were deployed into companies which meet the Treasury’s definition of ‘Knowledge Intensive Companies’.
Under changes announced in the Chancellor’s Autumn Budget, managers are no longer encouraged to invest in capital preservation schemes. Instead, Government policy encourages managers to support those companies who have significant intellectual property, have the capacity for significant growth, and into which there is a potentially larger degree of investment risk.
Deepbridge has also announced that its investments in 2017/18 – across a total of 46 innovative companies in a variety of technology and life science areas – have been able to support over 400 jobs across those investments.
Investee companies amongst the 46 include: Arbnco – a leading provider of commercial and portfolio real estate energy efficient report and risk mitigation solutions; VTime Holdings Ltd – creators of cutting-edge virtual reality software; and Zilico Ltd – developers of a patented cancer diagnostic device technology that will improve and extend current cancer screening programmes.
The 46 investee companies have produced a significant number of new products which are being used in over 195 countries, with formal commercial distribution or trials being undertaken in over 30 countries.
Deepbridge invests specifically in growth-focused technology and life sciences companies, utilising the EIS and Seed EIS.
Ian Warwick, Managing Partner at Deepbridge, commented: “As one tax year ends, another begins and it is pleasing to announce that all funds raised during 2017/18 were also deployed within the same tax year, across a total of 46 companies, all meeting the new ‘knowledge intensive’ definition that Chancellor Philip Hammond set out in his comments post-Patient Capital Review.
“In that sense there has been no change to the way Deepbridge approaches our investments whilst other EIS providers have found a large degree of turbulence to their investment approach. As the tech and life sciences specialists, our ethos and objectives remain consistent with no change to our approach, due diligence or management.
“Our two main sectors – technology and life sciences – continue to evolve at a blistering pace and it is testament to the expertise and the hard work of the staff within both Deepbridge, and our investee companies, that we have such a strong roster of investments opportunities, with the potential for excellent growth in many areas.
“As the Chancellor has spoken about, EIS and SEIS investment is not about capital preservation; instead it is about supporting those businesses who might not be able to seek investment through ‘normal’ channels, and it is about recognising the huge potential within these companies in order to help them begin their journey, and to ensure they are as successful as they would wish to be.
“We have a great many, further opportunities and companies to explore over the course of the next 12 months, and beyond, and are also available and willing to talk to advisers seeking quality EIS/SEIS homes for their client’s money.”
Maureen Eisbrenner, CEO of Arbnco, said: “Having consistently demonstrated their faith in our proposition and our objectives, we have been delighted to work with the Deepbridge team as Arbnco has grown. Their commercial experience and their genuine commitment to working in partnership with us has been invaluable.”
Sameer Kothari, CEO of Zilico Limited, added: “Having an investor on board who appreciates what it takes to bring life science products to market is greatly beneficial. The team at Deepbridge has relevant business experience and this, coupled with the capital, significantly helps as we drive Zilico forward.”
