Investing in the future of the UK - EIS Association · Amplience Ltd Investing in the future of the...

Investing in the future of the UK

eisa directory Final Feb14.indd 1 05/02/2014 09:51


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Contents

Foreword by Lord Flight ...........................................03

Introduction by Sarah J. Wadham ..........................04

Contributing Fund Managers ..................................06

Company profiles/Case studies ...............................08

Contributing Fund Managers contact details ......39

ACAL Energy Limited ..............................................08 ACHICA .......................................................................09 Amplience Ltd .............................................................10 Angela Malik Limited ................................................11 AnTech Limited ...........................................................12 Arieso .............................................................................13

Base79 ............................................................................14 Benito’s Hat ...................................................................15 Blur group plc ..............................................................16

Celoxica ........................................................................17 Cognia ...........................................................................18 Coryton Advanced Fuels Ltd ...................................19 Curo Compensation ..................................................20

Digital Theatre .............................................................21

Freedom Brewery .......................................................22

Hampshire Cosmetics Limited ...............................23 Horizon Discovery Limited .....................................24

Ingresso Group Ltd ....................................................25

Jolly Fine Group Ltd ...................................................26

Lyst .................................................................................27

Metrasens Ltd ..............................................................28

NewVoiceMedia ..........................................................29

Oxford Photovoltaics Limited .................................30

Property Network .......................................................31

SafeGuard World .......................................................32 Scancell Limited ..........................................................33 Sirigen ...........................................................................34

The Practice ..................................................................35 Tracsis plc .....................................................................36

WANdisco plc .............................................................37

Xeros Limited ..............................................................38

Company Profiles


Foreword


During the seven years I have been chairman of the EIS Association it has been rewarding to see the EIS industry mature and play a growing role in the much needed provision of equity capital for new and small businesses. EIS investing has played an important role in supporting the significant increase in entrepreneurial activity in the UK over the last three years, particularly in new business areas and new technology. Several of these companies will be the giants of tomorrow, driving the growth and success of the British economy.

This short handbook is designed to draw wider attention to the success of the EIS scheme in helping build thriving businesses that are a source of innovation and employment and help reinforce the future prosperity of the UK. HMRC has reported that £1 billion was invested in EIS in the 2011/2012 tax year. That is a very large number and a tremendous expression of the success of the scheme which has now been running for nearly 20 years with the support of both Labour and Coalition governments. However, government statistics cannot convey the exciting nature of the individual companies that have taken EIS financing, often the only source of funding available to start-up and early stage companies, and we hope you will gain a sense of that excitement and ambition from the descriptions in this book.

It certainly gives me a great deal of pleasure as Chairman of the EISA to use this opportunity to celebrate our activities. Investment in this sector is to be encouraged and applauded and we hope the positive story of the last seven years continues.

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By Lord Flight – Chairman of the EIS Association



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Introduction

The EIS Association is proud to be associated with this handbook which gives case studies from 9 leading EIS Fund Managers with a successful track record in investing in EIS qualifying companies. These case studies highlight the role EIS investment plays in enabling entrepreneurial companies to grow. Fund Managers play a vital role, providing a professional approach to the selection and management of EIS qualifying investments, sourcing investment from high net worth investors, mentoring and guiding the chief executives of investee companies so the companies can develop to their full potential and looking after the interests of early stage investors as portfolio companies grow.

The EIS and the more recent SEIS tax breaks are important in encouraging investment, but there is often a wish by the individual investors to be involved with exciting companies and a wish to ‘give something back’. The contribution to the economy in terms of job creation is enormous and HMRC benefits from the Corporation and Income Tax generated as these businesses expand, as well as the VAT on the spending of their employees. There is simply no other source of funding for these early stage companies.

This is a very exciting time for EIS investing as the industry ‘comes of age’. Higher levels of personal taxation and changes to the pension rules have encouraged many new investors into EIS and both Wealth Managers and IFAs are increasing their focus on EIS investing. The £1 billion invested to March 2012 is expected to reach £1.5bn to March 2013, and the SEIS which supports the more risky start-up companies has raised £82m for 1,100 companies, far more than was anticipated when the scheme was set up. Since EIS was introduced in 1994, £11bn has been raised and 20,000 companies have received funding.

The EIS Association (EISA) is the official trade body for the Enterprise Investment Scheme. Members include most of the key players in the EIS space. EISA works closely and effectively with HMRC and HM Treasury, presenting a unified view from the industry in order to enhance the working of EIS. Notable achievements include:

• Increase in EIS income tax relief from 20% to 30%• Relaxation of income tax carry-back, permitting investment at any time in a tax year

• Removal of the loss relief cap of £50,000 from the EIS

• Increase in the annual cap for investment into an EIS company from £2m to £5m

• Increase in the maximum gross assets a qualifying firm can have from £7m to £15m pre new money

• Increase in the maximum number of employees allowed from 50 to 250

By Sarah Wadham – Director General of the EIS Association



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The EISA plays an important educational role. It organises two technical seminars a year and updates members on key developments. The EISA, in partnership with Tolleys, is also launching a Diploma Course on EIS investing. This consists of an online study course of approximately 10 hours followed by an exam. The course will cover an introduction to the EIS; the tax rules and incentives; the EIS Fund sector and relevant financial Regulation. The Diploma is likely to become the officially recognised qualification for the EIS.

EIS and SEIS Tax Reliefs (minimum holding period of three years to obtain these reliefs)Income Tax Relief EIS 30% upfront income tax relief (up to a maximum investment of £1 million in the

current tax year, plus the ability to carry back to the previous tax year)Income Tax Relief SEIS 50% up front income tax relief (up to a maximum investment of £100,000 plus the

ability to carry back to the previous tax year)CGT Deferral Unlimited capital gains tax deferral for life of the investmentCGT relief Any capital gain is tax free (provided income tax relief has been given and not

withdrawn)Capital gains reinvestment relief (SEIS only) - Relief against half of 2013/14 reinvested gains

IHT relief Usually up to 100% inheritance tax relief after two years through Business Property Relief (provided the investments are held at time of death)

Loss relief Any loss (calculated after deducting the income tax relief) may be offset against taxable income of the same or previous tax year, or capital gains of the same tax year or future tax years.

Dividends paid are taxable

I hope you find these case studies interesting and valuable – they are a wonderful example of EIS in action.

Sarah J. Wadham Director General – The EIS Association 82 Blackfriars Road, London SE1 8HA

Email [email protected] | Mobile 07876 033 945 | Office 020 7620 6789

Registered Office: 19 Cavendish Square, London W1A 2AW. Incorporated in England and Wales No: 0248043



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Contributing fund managersContact details can be found on page 39



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www.amplience.com

Rationale for investmentTh e overall Fuel Cell market was estimated at $500m by the US DoE in 2010, forecasted to rise to $1bn in 2014 and to accelerate aft er that. Parkwalk believed this disruptive technology, backed by the signifi cant interest of some major industry players, could succeed.

Growth in revenues and employmentIn June 2013, ACAL announced their PEM hydrogen fuel cell chemistry had reached 10,000 hours runtime on an automotive industry durability test without any signifi cant signs of degradation.ACAL employs leading scientists and engineers in the Fuel Cell arena and over 90% of employees are graduates.

• ACAL expects revenues of £500,000 in 2013/14

Value added by EIS managerParkwalk assisted and advised on further potential funding opportunities.

Amount invested and any co-investorsTh e Carbon Trust, Solvay SA, Enterprise Ventures, I2BF, Parkwalk and others: £6million.

ACAL Energy Limited

Investment Date 2011Sector Energy & RenewablesLocation RuncornEIS Manager Parkwalk Employees 31


ACAL Energy is an innovative chemical company developing and licensing a ground-breaking platinum free liquid catalyst. ACAL is the world’s leading developer of low cost PEM fuel cell solutions and developing novel chemistry for grid-based, battery energy storage systems used to power fuel cells.

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Fund Manager


Rationale for investment• One of Europe’s leading and fastest growing

online businesses • A disruptive business in a large market sector

(£33bn in UK alone) with a proven, attractive customer proposition

• Growth from new customer acquisition, repeat buying and geographic expansion

• Attractive exit options via M&A and also IPO potential

Growth in revenues and employmentRevenues: £1.9m (2010); £14m (2011); £37m (2012)

Value added by EIS managerDFJ Esprit holds a Board seat. Access to European and US investment banks.

Amount invested and any co-investors£9m growth round investment. DFJ Esprit EIS co-invested alongside DFJ Esprit’s institutional venture capital funds together with Balderton Capital.

ACHICA

Date of DFJ Esprit Investment 2012Sector eCommerceLocation LondonEIS Manager DFJ EspritEmployees 100+

www.achica.com


ACHICA is one of the UK’s highest profi le and fastest growing eCommerce businesses. It operates an online members-only store off ering promotions on luxury brands for home, garden and lifestyle products with up to 70% off the retail price. Stock of each item is limited and each sale lasts 48 hours only. ACHICA was launched in 2010 by two highly experienced serial entrepreneurs, Will Cooper and Quentin Griffi ths. Will was CEO of TradeDoubler, the leading affi liate business in Europe which he took public on the Swedish Stock Exchange. Quentin was co-founder of ASOS with Nick Robertson which fl oated on AIM and now has a market capitalisation in excess of £5bn.

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Fund Manager


www.amplience.com

Rationale for investmentTh ere is a large addressable market for the company to target worth approximately £1 billion, the company already and a growing and impressive customer list, it was backed by a strong management team and the product was, and remains at the forefront of retailing trends.

Growth in revenues and employmentRevenues grew by 10-20% before EIS investment. In the most recent full year to 31 December 2012 and post EIS investment, revenues grew by 350%. Employment has risen from 10 individuals before EIS investment to 50.

Value added by EIS managerTh e EIS Manager strengthened the Board of the company by introducing both the Chairman and NED, both with an extensive retail background and connections.

Amount invested and any co-investorsAmplience has raised £8.5m to date. Co-investors with Octopus Investments include NorthStar Ventures and the North East Accelerator Fund.

Amplience Ltd

Investment Date December 2010 and follow-onSector TechnologyLocation LondonEIS Manager Jo Oliver, Octopus InvestmentsEmployees 50

www.amplience.com


Th e Amplience platform enables merchandisers and marketers to build device optimised, rich and engaging customer experiences and channels for all channels and devices. Th e simple and intuitive platform tools and advanced publishing technologies make media production and channel management simple and effi cient. Amplience transforms digital channel economics. It reduces overall production costs by 90 per cent. and drives signifi cant productivity improvements. As a result, digital marketing and merchandising teams produce more relevant and engaging experiences, across more customer touch points – to improve conversion and average order values by double digit percentages. Clients include M&S, Shell, Mothercare, Waitrose and L.K. Bennett.

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Fund Manager


Rationale for investmentHaving proved the combined deli, café and cookery school concept in the fi rst store, AML raised funds to add two further units to the estate, transform the back-offi ce and develop additional revenue streams. Alongside the trading potential of the three stores, there is also the opportunity to build Angela’s burgeoning media profi le and use this to support an Angela-Malik-labelled retail strategy for food products and cookware.

Growth in revenues and employmentTh e company employs 7 full-time or part time staff and generates turnover of c.£200k. Once the additional two sites are trading, we would expect the business to employ 20+ people and for turnover to be in excess of £600k.

Value added by EIS managerDowning’s investment representatives take an active part of the AML Board meetings, advising on the business’ strategic direction and challenging management on trading performance. Given the early stage of the AML business, Downing has also provided support in the growth of the operations and infrastructure of AML – this has included implementing a new fi nancial reporting system and assisting with new store design, staff recruitment and marketing and brand development.

Amount invested and any co-investors£320k Downing Growth EIS Fund.

Angela Malik Limited

Investment Date 2013Sector Dining / Food RetailLocation LondonEIS Manager Tom Phillips, Downing Employees 7

www.angelamalik.co.uk


Angela Malik Ltd (AML) operates a combined deli, café and cookery school in West London. Th e business is led by Angela Malik, an entrepreneur and chef, who has also appeared on Radio 4, Channel 4 and ITV cookery shows. AML sees its role in life to ‘feed the mind, body and soul of its community with new, chef-made, tasty and convenient Brit-Asian food that is a more exciting, cleaner and healthier alternative than so many of the processed and bland options available today’.

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Fund Manager


www.antech.co.uk

Rationale for investmentCalculus’ and SAEV’s backing enabled Antech to complete the development and launch of the drilling tools COLT and POLARIS supported by field teams comprising field engineers and support staff. COLT and POLARIS enable new and re-entry wells and multi-laterals to be drilled using coiled tubing technology which is cheaper and faster than other drilling methods. Antech is now well placed to develop as an international oil services business.

Growth in revenues and employmentAntech has increased headcount by 45% since investment. Revenues in the core products division (which has been profitable since inception) have also risen in the twelve months since investment.

Value added by EIS managerIn addition to its investment Calculus provides board support and advice, including help with senior appointments. Calculus’ involvement triggered the interest of SAEV, (the corporate venturing arm of the world’s largest oil company), thereby facilitating inward investment into the UK by a large industry player.

Amount invested and any co-investorsCalculus Capital Limited: £2.15mSaudi Aramco Energy Ventures: £2m

AnTech Limited

Investment Date 2013Sector EnergyLocation ExeterEIS Manager Alexandra Lindsay, Calculus Capital Employees 32


Calculus backed Exeter based Antech in its development and launch of a new generation of directional coil drilling products for the oil and gas markets. Antech has been a manufacturer and supplier of products to the oil and gas markets since its establishment over twenty years ago. Calculus has partnered with the venture investment arm of Saudi Aramco (SAEV), the world’s largest oil company by production and reserves, to back Antech. The co-investment of Saudi Aramco is likely to accelerate commercialisation and adoption of the products in the Middle Eastern market. AnTech has recently opened a facility in Houston and is targeting expansion in the Middle East, North and South America, Eastern Europe, Russia, China, Malaysia and Australia.

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Fund Manager


Rationale for investment• Th e problem which Arieso addressed was

large and growing, driven by an exponential increase in mobile data traffi c as smartphones proliferated

• Arieso’s team had worked together for many years and understood their customers through previous experience at Vodafone

• Th e complexity of the problem and Arieso’s strong IP created barriers of entry for competitors

• Arieso had already secured strong reference customers and £1.5m TTM revenues at the time of our fi rst investment

Growth in revenues and employmentSince OCP fi rst invested in 2008 there has been:• CAGR 48% revenue growth• 5x increase in the number of employees

Value added by EIS managerOxford Capital helped reduce Arieso’s reliance on its chief executive for generating sales. Th ey appointed a specialist sales consultancy to recruit a Sales Director, expand the sales team and create a more formal and eff ective sales process. Th rough its Hong Kong offi ce, Oxford Capital also facilitated an introduction to major telecoms groups in China, Japan and South Korea. Oxford Capital were also instrumental in helping Arieso to prepare for and complete the eventual exit.

Amount invested and any co-investorsOxford Capital: £2.1 millionQualcomm Ventures, Add One, Encore I, Carbon Trust and others: £7.5 million

Arieso

Investment Date 2008 and follow-onSector Network PerformanceLocation LondonEIS Manager Colin Watts, Oxford Capital Employees 105

www.arieso.com


Arieso develops soft ware and hardware for mobile phone network operators. Th e company’s technology collects, stores and analyses large quantities of connection data, providing operators with a rich source of intelligence for enhancing network performance and optimising effi ciency. Th e business was acquired in 2013 for $85m in a cash transaction. Th is generated a return of 4x for Oxford Capital’s EIS investors, with a further 0.7x to be returned in when an escrow retention is released.

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Fund Manager


www.base79.com

Rationale for investment• Backing an outstanding management team

and experienced board that had experience of growing and exiting successful media businesses

• Investing in a technology and service proposition allowing traditional content owners to address the rapid shift towards online video consumption

• Strong growth and commercial traction in the business itself, combined with online video being the fastest growing subset of the digital media market

• Strong acquiror appetite driven by traditional media businesses investing in new media technology, expertise and audience

Growth in revenues and employmentSince MMC fi rst invested in 2010 there has been:• CAGR 151% revenue growth• 10x increase in the number of employees

Value added by EIS managerMMC invested in Base79 from an early stage and has continued its support over several rounds of funding, alongside existing angel investors in the fi rst instance and more latterly alongside US growth investors. Th is support has allowed the business to raise the appropriate level of capital at each point in its commercial development. MMC has developed a close working relationship with the founders and management and has been an active member of the board of directors.

Amount invested and any co-investorsMMC: £3millionTh e Chernin Group and others: $10million

Base79

Investment Date 2010 and follow-onSector Digital MediaLocation LondonEIS Manager Rory Stirling, MMC Ventures Employees 70


Base79 is a network for Video Creators, Content Owners & Brands. It is the largest YouTube Multi-channel Network (MCN) outside North America and was one of the leading partners in YouTube’s Original Programming Initiative. Base79 creates global audiences for video, partnering with video rights holders, producers and brands to build online audiences, claim and protect their intellectual property, sell premium advertising, and generate new revenues on YouTube and other platforms. Today the company has offi ces in US, UK, France, Germany, Spain and Australia. It runs more than 1,500 channels, with more than 1,000 partners, creating in excess of 750 million views per month on YouTube. According to comScore, almost 90 million people watch Base79 content every month.

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Fund Manager


Rationale for investmentTh e investment enabled the rollout of restaurants across the UK with plans to operate 18 by 2016. As part of this, the company’s management team was strengthened with Jay Travis, formerly of wagamama, joining as Chairman, and Graham Ford, former operations director of Strada, joining as Chief Executive. Th eir structured background and relevant rollout experience is complementary to the founders’ entrepreneurial, marketing and culinary skills.

Growth in revenues and employmentTh ere were 70 employees at the time of investment which will rise to 105 with the opening of the sixth site in March 2014. Th e company plans to open three to four new restaurants each year, with each new site opened creating 14-17 additional jobs.

Value added by EIS managerIn addition to its fi nancial backing, Calculus provides expert guidance with board representation, providing support and advice to the management team. Calculus has also leveraged its industry contacts to introduce potential new partners and business opportunities to Benito’s Hat.

Amount invested and any co-investorsCalculus Capital invested £1.1mIndividual investors: £300,000

Benito’s Hat

Investment Date 2013Sector Leisure & hospitalityLocation LondonEIS Manager Rick Jones, Calculus Capital Employees 105

www. benitos-hat.com


Benito’s Hat is a Mexican themed fast casual restaurant business in central London, serving tailor-made burritos, tacos, soups and salads. Th e brand is centered on an authentic experience and high-quality food at an aff ordable price point. Benito’s Hat currently has 5 sites across London in Goodge Street, Covent Garden, Oxford Circus, Kings Cross and Farringdon. Benito’s Hat is the only restaurant in its sector with a Mexican-born head chef.

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Fund Manager


www.blurgroup.com

Rationale for investmentAt the time of our fi rst investment, the company had demonstrated an impressive track record of organic growth, and the exchange had reached a scale that we believed represented a genuine fi rst-mover advantage. Th e period-on-period key metrics were indicative of increasing traction and growth opportunity. At the time of our second investment, we had further evidence of progress with the company’s key growth metrics. We also had fi rst-hand experience of the exchange with Octopus having successfully used it to procure its own

business services.Th e company fl oated on AIM IN October 2012 at a share price of 82p raising £4m, and then raised £7.6m in June 2013 at a price of 150p. Th e shares are currently trading at over 450p.

Growth in revenues and employmentEmployees at time of investment: 27 Employees now: 70

Amount invested and any co-investors£0.96m

blur group plc

Investment Date October 2012 and follow-onSector Online MediaLocation ExeterEIS Manager Paul Stevens, Octopus InvestmentsEmployees 70


Headquartered in Exeter, blur Group has established an exchange to facilitate the procurement of business services, or “s-commerce”. Th e exchange brings together a growing pool of expert service providers from around the world (specialising in design, marketing, content, art, innovation, technology, legal and accounting) and corporate customers seeking to procure such services. Th e exchange work as follows; corporate customers post a project brief on blur’s exchange; the service experts will then pitch for the project; the exchange then fi lters out a shortlist of pitches from which the customer can then select a winner; blur then takes a cut of the completed project value. blur believe that this approach aff ords corporate customers with time, cost and quality benefi ts, and believes it is well positioned to address an industry estimated to be worth in excess of $1 trillion. We have invested in the company twice on behalf of our EIS investors, fi rst at the time of the company’s IPO on AIM in October 2012 and again in June 2013. At the time of the company’s IPO the company had achieved a combined value of briefs submitted on its exchange of $13.5 million, this has since risen to over $69.0 million. Th e number and value of new briefs being listed on the exchange has been increasing at an accelerating rate. In the third quarter of 2013 the company reported a year-on-year 178% increase in the number of projects submitted, and a 493% increase the value of the projects submitted. Since fl oating on AIM, the number of expert service providers using the exchange has increased from 20,000 to over 31,000. We are also impressed by the profi le of customers using the exchange, with institutions such as GE, Zurich, the AA and Danone.

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Fund Manager


Rationale for investment• Celoxica had a very attractive business model

with high gross margins and long-term recurring revenues.

• In the fi nancial technology sector, Celoxica was unique as the only vendor to off er a compact hybrid hardware and soft ware solution, which helps reduce data centre footprint and total cost of ownership

Growth in revenues and employmentSince Celoxica 2008 there has been:• CAGR 150% revenue growth• 3x increase in the number of employees

Value added by EIS manager• Oxford Capital backed the company as part of a

‘take-private’ transaction from the AIM market in 2008

• Supported bringing key strategic investors on-board including Credit Suisse and Goldman Sachs

• Helped the company to expand into Asia and the US

• Worked with the company to develop new product launch strategies.

Amount invested and any co-investorsOxford Capital: £1.9 millionGoldman Sachs, Credit Suisse, Spark Ventures, Herald Investment Management and others: £8.9 million

Celoxica

Investment Date 2008 and follow-onSector Hardware-accelerated tradingLocation LondonEIS Manager Martyn Holman, Oxford Capital Employees 36

www.celoxica.com


Celoxica sells a combined hardware and soft ware product to institutional investors who require extremely high performance access to fi nancial market data. Data feeds are delivered over high-speed networks to the host computer memory, where it can be processed in a few millionths of a second. Th is allows Celoxica’s clients to respond faster to changing market conditions and ultimately increase profi ts.

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Fund Manager


www.cognia.com

Rationale for investment• Oxford Capital recognised the potential value

of Cognia’s mobile call-recording technology in the financial services sector, where the global regulatory environment was starting to create significant demand

• Investing alongside Vodafone Ventures, who were committed to promoting Cognia’s technology through their business services division, was a compelling opportunity

Growth in revenues and employmentSince OCP first invested in 2008 there has been:• CAGR 100% revenue growth• 10x increase in the number of employees

Value added by EIS managerOxford Capital has expanded Cognia’s senior management team, as well as introducing key non-executive directors. Colin Watts has helped the directors with the strategic development and financial planning of the business. Oxford Capital also introduced Cognia to key strategic investor, Vodafone Ventures.

Amount invested and any co-investorsOxford Capital: £2.7 million

Cognia

Investment Date 2011 and follow-onSector Mobile recordingLocation LondonEIS Manager Colin Watts, Oxford Capital Employees 20


Cognia provides cloud services that address a growing worldwide demand to manage voice and data communications for compliance, risk management and workforce productivity. Expected to grow from $1.8 billion today to $5 billion by 2017, this is a market dominated by legacy onsite technology and is ripe for disruption. The company’s secure, global communication services platform, transforms the cost and ease by which organizations can control, capture and analyze voice and non-voice communications across distributed workforces.

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Fund Manager


Rationale for investment• Orphan in-house asset purchased from BP at an

attractive price• Significant investment made by BP prior to

acquisition into state-of-the-art plant and equipment

• Invested alongside highly qualified MBI team• Strong asset backing through land and facilities

provides downside protection• Niche market with high barriers to entry• Potential to develop sales to third party

customers (previously solely supplied BP).

Growth in revenues and employmentOakfield Capital acquired Coryton in June 2010. At the time it had it had no sales and 7 employees. In the 12 months to June 2013 sales were £8.6m and the company had 25 employees.

Value added by EIS manager• Provided scarce risk capital to acquire asset that

was not being utilised• Took on key board and operational roles and

strengthened management team• Provided entry route into key accounts• Introduced financial systems and controls.

Amount invested and any co-investorsOakfield Capital: £1.6 millionManagement: £0.4 million

Coryton Advanced Fuels Ltd

Investment Date 2010Sector Oil ServicesLocation EssexEIS Manager Oakfield Capital Employees 27

www.corytonfuels.co.uk


Coryton Advanced Fuels operates a world-class bonded fuel blending plant specialising in bespoke fuels and storage services. Coryton offers a responsive customer service providing a range of specialised fuel blends backed by technical support and experience.Products are supplied to a broad range of customers including:• Automotive OEMs• Motorsport teams including Formula 1• Oil and additive companies• Aviation sector

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Fund Manager


www.curocomp.com

Rationale for investmentCuro has an exceptional management team, who have successfully built and sold a business in the same sector for a substantial profi t to investors. Th e product is fully developed and has proven itself within the existing customer base, which includes a number of multinational businesses of exceptional quality. Businesses of this nature attract high exit multiples, based on the level of recurring revenue through medium to long term contracts.

Growth in revenues and employmentCuro is an early stage business that is in its growth phase. We expect to see a signifi cant increase in its revenues as it builds its customer base. Th e number of staff within the business will grow in line with this, as more specialists are required to deliver sales, soft ware implementation and systems support.

Value added by EIS managerChris Allner has extensive experience with working with early stage companies and is a member of the Curo board. Chris utilises this experience to ensure best practice within the operation and also has industry contacts to support the company’s development.

Amount invested and any co-investors£475k Downing Growth EIS Fund£525k Downing VCT Funds

Curo Compensation

Investment Date 2013Sector HR Soft ware as a ServiceLocation LondonEIS Manager Chris Allner, Downing Employees 12


Curo Compensation Ltd (Curo) was established in 2009 and off ers a ‘soft ware as a service’ solution to blue chip companies to manage their annual staff compensation (salary, bonus & LTIP) review process. Th is allows companies to control the planning and implementation of the annual compensation review process, and is particularly suited to large businesses, where existing processes, oft en spreadsheet based, are unwieldy, complex, insecure and lack governance.

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Fund Manager


Rationale for investment• Digital Th eatre’s profi le fi ts perfectly with the

type of investment Ingenious targets, where technology is creating a new business model for revenue in an existing media segment

• Leveraging off the global attractiveness of UK theatre, making its output more widely available through on-line distribution

Growth in revenues and employmentSince Ingenious fi rst invested in 2012 the company has been investing in content and has successfully launched its fi rst two cinematic releases – Merrily We Roll Along and Private Lives. It has also been expanding its educational off ering, DT Plus.

Value added by EIS managerDigital Th eatre will leverage Ingenious’s network of industry contacts, knowledge and expertise as the U.K’s most active investor in media and creative industries.

Amount invested and any co-investorsIngenious Media: £750,000Ingenious invested alongside other angels and a corporate (DC Th ompson).

Digital Theatre

Investment Date 2012Sector Digital MediaLocation LondonEIS Manager Patrick Bradley, Ingenious VenturesEmployees 10

www.digitaltheatre.com


Digital Th eatre works in partnership with Britain’s leading theatre companies to capture live performance authentically onscreen. Using multiple camera angles and high-defi nition technology, Digital Th eatre bring the drama and emotion of each production to a global online audience through cinema and on-line distribution.

21

Fund Manager


www.freedombrewery.com

Rationale for investment• Britain’s beer industry is the second largest in

Europe and micro brewers’ share of the market is growing

• Sales growing 20% pa with no concerted sales and marketing eff ort

• Invested alongside an experienced MBI team• Business required new capital and expertise to

increase brewing capacity and realise growth potential

• Acquired a profi table business at an attractive price as a platform to enter this growing market

Growth in revenues and employmentOakfi eld invested in Freedom Breweries in July 2013. Sales in the subsequent quarter were up 56% year on year. Capital investment to increase brewing capacity fi vefold in 2014 will increase staff requirements.

Value added by EIS manager• Taken key board roles• Brought in a new CEO and Sales Director• Provided commercial support to key account

relationships• Opened up distribution opportunities in major

pub chains• Provided scarce risk capital• Negotiated banking facilities• Overseeing major capital investment project in

the brewery

Amount invested and any co-investorsOakfi eld Capital: £1.0 millionManagement: £0.3 millionOther investors: £0.7 million

Freedom Brewery

Investment Date 2013Sector BeerLocation Staff ordshireEIS Manager Oakfi eld Capital Employees 12


Founded in Parsons Green, London in 1995, Freedom Brewery is the longest established microbrewer of craft lager in the UK. Freedom moved to a rural site in East Staff ordshire in 2004. Th e focus of previous owners on product quality and consistency resulted in a premium on-trade customer base and several beer awards.

22

Fund Manager


Rationale for investmentFocusing on good management teams is key for Calculus and completion of a successful exit with this team before was a strong factor in the investment decision. Th e company has a good reputation with high levels of customer service. Th e opportunity was a turnaround to restore this established company to profi tability by increasing sales, managing costs and introducing effi ciencies.

Growth in revenues and employmentHampshire is a signifi cant employer in its area. In addition to improving the fi nancial performance of this previously loss-making company, in the twelve months since investment, the number of employees has risen from 185 to 197 today.

Value added by EIS managerIn addition to its fi nancial backing, as a board member Calculus provides ongoing strategic support and advice to the management team. Using its network of contacts, Calculus has been able to introduce potential new customers and business partners.

Amount invested and any co-investorsCalculus initially invested £2m in 2012. Together with management, a further £300,000 investment has been made to support the purchase of a small bolt-on acquisition.

Hampshire Cosmetics Limited

Investment Date 2012 and follow-onSector ManufacturingLocation HampshireEIS Manager Rick Jones, Calculus Capital Employees 197

www.hants-cosmetics.co.uk


Hampshire Cosmetics, founded in the 1970s, is a developer and manufacturer of cosmetics, toiletries and fragrances with an impressive client base of well known brands. Th e company has carved out a specialist niche in new product launches from concept creation through R&D, manufacturing, packaging and distribution. Th e investment was part of a Management Buy In, led by an experienced management team which Calculus had previously backed. Since Calculus’ investment in December 2012, the new management team has actively pursued a strategy to increase sales, margin, and cashfl ow whilst rationalising the product line and improving the customer experience. In addition to organic growth, and with a follow-on investment from Calculus, the company has made a bolt-on acquisition which broadens the product range and provides additional routes to market.

23

Fund Manager


www.horizondiscovery.com

Rationale for investment• Applications of the technology in a number of

high growth markets• Patented technology and commercially oriented

entrepreneurial team. Won the Queens Award for Enterprise in 2012

• Attractive exit options via M&A with an IPO a strong possibility in due course

• High quality syndicate including top tier life science venture capital investors and strategic industry investors

Growth in revenues and employmentRevenues: £1.9m (2010); £3.5m (2011); £3.9m (2012)

Value added by EIS managerDFJ Esprit holds a Board seat. Active contribution to operational, fi nancing and funding strategies. Investment banking relationships.

Amount invested and any co-investors£10m from DFJ Esprit EIS, DFJ Esprit, MVM Life Sciences, Roche Pharmaceuticals, Jonathan Milner (Chairman; founder of AIM-listed Abcam), Cambridge Angels, others.

Horizon Discovery Limited

Date of DFJ Esprit Investment 2010Sector Life SciencesLocation CambridgeEIS Manager DFJ EspritEmployees 82


Th e company’s mission is to accelerate the discovery of targeted and personalised medicines. With healthcare provision as a whole increasingly focussing on the opportunities for better, more targeted therapies, the drive towards personalized medicine is one of the most transformational initiatives underway today. Th e company has successfully acquired and combined intellectual property from leading centres in the fi elds of human genetic engineering and cancer genetics, creating an enabling platform technology capable of being extended into multiple applications in the pharmaceutical and diagnostic industries. Horizon Discovery was listed in 2013 as one of UK Government’s “Future Fift y” high growth companies with IPO potential.

24

Fund Manager


Rationale for investment• Disruptive technology serving a large market• Acquired assets at an attractive price through an

administration process• Heavy investment in platform by previous

owner; proven technology• Excellent growth potential; highly scalable

business model

Growth in revenues and employmentWhen Oakfi eld Capital formed Ingresso in January 2011 it had no revenues and no employees. Today Ingresso handles £12m annualised of ticket revenues (2014 forecast of £24m) and has 22 employees.

Value added by EIS manager• Taken on key board roles and provided

signifi cant operational input• Brought in a new CEO• Provided scarce risk capital to acquire assets that

would not have been utilised• Secured follow-on funding through a merger

and partnership with a large travel company• Facilitated the sign up of London theatres and

other suppliers• Instrumental in sealing a distribution agreement

with Amazon in Dec 2013

Amount invested and any co-investorsOakfi eld Capital: £2.1 millionWalvis BV: £1.8 millionOthers: £0.2 million

Ingresso Group Ltd

Investment Date 2011 and 2012Sector eCommerceLocation LondonEIS Manager Oakfi eld Capital Employees 22

www.ingresso.co.uk


Ingresso provides a Global Distribution System for entertainment ticketing, making it easy to sell tickets, manage bookings and drive incremental revenue. Annual entertainment ticket revenues in the UK are in excess of £2 billion, but the majority of ticket sales are negotiated on a one-to-one basis between venue and distributor, via a plethora of diff erent ticketing systems, leaving many tickets unsold. Ingresso provides the interface between events and ticket retailers to provide real-time access to live inventory. Th e technology enables ticket suppliers to sell more tickets at a better margin through a broader distribution footprint, gaining access to some of the largest travel companies with access to over 1 billion passengers.

25

Fund Manager


www.malthousefulham.co.uk | www.foxandgrapeswimbledon.co.uk

Rationale for investment• Relocation of a top chef, Claude Bosi, and

restaurant from Ludlow to a larger target market in London

• Asset acquired at attractive price• Opportunity to leverage core brand into

profi table gastro pubs/brasseries • Additional revenue stream through high quality

accommodation

Growth in revenues and employmentWhen Oakfi eld Capital set up the group it had no revenues and no employees. Sales for 2013 were £2.3m and the company has 35 employees.

Value added by EIS manager• Took on key board and operational roles• Introduced fi nancial and stock control systems• Sourced and negotiated acquisition of all 3 sites• Provided marketing and promotional experience • Arranged working capital facility and follow-on

funding for expansion• Helped reach profi tability from fi rst year of

trading

Amount invested and any co-investorsOakfi eld Capital: £1.3 million

Jolly Fine Group Ltd

Investment Date 2008 and 2010Sector Restaurant Location LondonEIS Manager Oakfi eld Capital Employees 35


Jolly Fine Group was created to fi nance and support the relocation of Hibiscus, a two Michelin Star restaurant, from Ludlow to Mayfair and, from this base, to open a chain of gastropubs in London and the South East. Th e Fox and Grapes was opened in Wimbledon in 2011 and the Malt House in Fulham in 2013. Both pubs off er a gastro dining experience in an informal pub setting together with high quality accommodation. Hibiscus was sold in August 2013 and Claude Bosi (Hibiscus’s chef) continues to support the gastropub rollout.

26

Fund Manager


Rationale for investment• Lyst will be the largest global online fashion

marketplace with a large percentage of returning customers with a high life-time value

• Lyst has demonstrated customer traction and strong momentum in its operational metrics and has a scalable customer acquisition model

• Complex back end data gathering technology is a high barrier to entry

• Experienced team and high quality co-investors

Value added by EIS managerDFJ Esprit holds a Board seat. Support via DFJ Global Network to assist US expansion.

Amount invested and any co-investors$5m Series A invested by DFJ Esprit EIS alongside DFJ Esprit and Accel Partners $14m Series B invested by Balderton Capital, DFJ Esprit, DFJ Esprit EIS, Accel Partners, existing investors and industry fi gures including Carmen Busquets of Net-A-Porter

Lyst

Date of DFJ Esprit Investment 2012Sector InternetLocation London and New YorkEIS Manager DFJ EspritEmployees 30

www.lyst.com


Th e company’s goal is to make Lyst.com the best place to discover and buy fashion on the web. Lyst operates a rapidly growing marketplace that focuses on selling the world’s best fashion brands and attracts over 2 million shoppers each month. DFJ Esprit led the Series A funding with Accel Partners (the backers of Facebook). Th e company has achieved impressive growth and rasied $14m in follow-on funding led by Balderton Capital, another top tier institutional venture capital fund manager.

27

Fund Manager


www.metrasens.com

Rationale for investmentTh ere is a large global addressable market for both products and an established global need for the Ferroguard® MRI product, early indications suggest that the worldwide market could be worth in excess of £1.1 billion, particularly due to tighter regulation of MRI facility design. Th ere was a strong management team in place with extensive technical background and it had a robust IP portfolio in place.

Growth in revenues and employmentIn the most recent full year to 31 October 2012 and post EIS investment, revenues grew by 367%. Employment has risen from 9 individuals before EIS investment to 42.

Value added by EIS managerTh e EIS Manager introduced a monitor to the Board with extensive experience in the medical fi eld and who has helped the Company open opportunities in the US and global markets.

Amount invested and any co-investorsMetrasens has raised £6.35m to date. Th e Company was originally funded by Angel investments, but as the company grew C5 Capital and AEGF Growth Fund invested alongside Octopus Investments.

Metrasens Ltd

Investment Date February 2010 and follow-onSector Medical & SecurityLocation MalvernEIS Manager Luke Hakes, Octopus InvestmentsEmployees 42


Metrasens is a technology business specialising in metal detection products for the healthcare and security markets. It was founded in June 2005 by two former employees of QinetiQ, a company specialising in defence security and technology. Metrasens’ products work by detecting magnetic material. Its Ferroguard MRI (magnetic resonance imaging) detection system provides visual and audio alarms at entry points to MRI rooms in hospitals. Th e Ferroguard system not only increases safety but also decreases potential costs, through reducing the likelihood of injuries and damage from projectiles in the MRI units. Th e company has also developed the FG1 Portable Security Pole, designed for multiple niche applications, such as street knife detection and mobile detection in prisons.

28

Fund Manager


Rationale for investment• Backing an exceptional management team with

a track record of growing SaaS businesses at a senior level

• A disruptive technology and business model in a large and mature market

• A strong growth rate combined with quality recurring revenue, high gross margins and exceptionally low customer churn

• High valuation potential driven by strong public market comparables and demonstrated acquirer appetite

Growth in revenues and employmentSince MMC fi rst invested in 2012 there has been:• 217% growth in revenues• 152% growth in employees

Value added by EIS managerMMC backed NewVoiceMedia when the CEO, Jonathan Gale, had been in the business just over one year. Th e business was starting to see strong commercial traction and the management team were naturally keen to continue accelerating growth. MMC provided investment capital at a time when the business still did not meet the requirements of larger growth investors. MMC’s funding gave management the confi dence to continue executing an aggressive expansion plan and the Company since gone on to raise more than $35m of growth capital from UK and US investors.

Amount invested and any co-investorsMMC: £1.5 millionCo-investors: Eden, Notion Capital, Highland Capital and Bessemer Venture Partners

NewVoiceMedia

Investment Date 2012 and follow-onSector Business soft wareLocation BasingstokeEIS Manager Rory Stirling, MMC VenturesEmployees 170

www.newvoicemedia.com


NewVoiceMedia is a leading provider of true cloud contact centre and voice solutions, enabling businesses of all sizes to deliver a personal and unique customer experience, quickly and securely. Customer service is the lifeblood of any organisation and NewVoiceMedia’s ContactWorld for Sales & Marketing and ContactWorld for Service make every customer interaction a great experience. Service availability and security are critical attributes of the cloud. NewVoiceMedia guarantees 99.999% service availability, and transparently backs that up with a Trust Site (http://www.newvoicemedia.com/trust), which off ers real-time data on how its services are performing. Established more than 10 years ago, NewVoiceMedia has 200+ customers in 40 countries on fi ve continents covering most industry sectors. Customers include Topcon, PhotoBox, DPD, Lumesse, QlikTech, Cunningham Lyndsey, CEB Group and Parcelforce.

29

Fund Manager


www.oxfordpv.com

Rationale for investment• Parkwalk believed OxfordPV had a clear and

robust strategy based on a novel patented technology which could prove price competitive with fossil fuels without the need for government subsidy.

• Management experienced in solar/BIPV sector with successful exit history

• New buildings have to meet strict emission standards

• $multi-billion organic BIPV market

Growth in revenues and employmentSince Parkwalk fi rst invested in 2011:• a 400% increase in the number of employees• OPV revealed a major breakthrough in effi ciency

of this new class of solar cell

Value added by EIS managerParkwalk fi rst invested in OPV when it spun-out of the University of Oxford, and has followed its money in subsequent rounds. Parkwalk introduced EIS protection in the Shareholders agreement, introduced the company to potential customers and assisted and advised management on further funding rounds.

Amount invested and any co-investorsParkwalk: £450,000MTI Partners and others: £4million

Oxford Photovoltaics Limited

Investment Date 2011, 2012 and 2013Sector Clean-TechLocation OxfordEIS Manager Parkwalk Employees 16


Oxford PV is developing a solid state dye sensitized solar cell which is optimised to drive a paradigm shift in the aesthetics, costs and performance of Building Integrated Photovoltaic systems. Th e solar cell development programme is advancing rapidly with lab cell effi ciency of more than 15%.

30

Fund Manager


Rationale for investment• Backing a management team and board with

experience in the sector• Investing in an underexploited gap in the online

property sector by bringing social media to house hunting

• Potential acquisition target for larger online property websites looking to expand into social

Growth in revenues and employmentSince Ingenious fi rst invested in 2012 there has been:• 250% revenue growth• 10x increase in the number of employees

Value added by EIS managerAs a board member Ingenious monitors the investment and adds knowledge of on-line advertising and early stage investing.

Amount invested and any co-investorsIngenious Media: £750,000Finance Yorkshire: £500,000

Property Network

Investment Date 2012Sector Social MediaLocation LondonEIS Manager Patrick Bradley, Ingenious Ventures Employees 10

www.propertynetwork.net


Property Network is an innovative property search platform for users on Facebook which generates individual profi led quality leads for the UK estate agent market. It also provides data and search information to other market counterparties.

31

Fund Manager


www.safeguardworld.com

Rationale for investmentLarge corporations are increasingly global. With that comes the challenge of paying employees and contractors across multiple countries. Th e market for providing services to these corporates was poorly served and underpenetrated providing a huge opportunity. SafeGuard is now a leader in this market.

Growth in revenues and employmentSince MMC fi rst invested in 2008 there has been c.100% CAGR revenue growth to a c.$30m revenue business in 2013.

Value added by EIS managerAs a board member MMC provides ongoing support and advice as the company rapidly scales.

SafeGuard World

Investment Date 2008Sector Business ServicesLocation CheshireEIS Manager Jon Coker, MMC Ventures Employees c. 230


SafeGuard (SGWI) is a market leader in providing consolidated global managed payroll and employment outsourcing solutions. A young, aggressive disrupter in the market, SGWI has been recognised with numerous awards, including those from Payroll World and Th e Sunday Times. On the back of forming strong strategic partnerships with HR-leaders such as Workday, SGWI now boasts annual revenues of $30m and processes 700,000 payslips annually. An impressive client portfolio of bluechip and Fortune 500 companies, are supported by a global workforce of 230 staff across four service centres. Th e year ahead sees SGWI expand into further HR markets – with global workforce solutions and consultancy divisions new to the table in 2014. Alongside SGWI’s drive towards service excellence, this is just another step in the journey to becoming the principal global payroll provider.

32

Fund Manager


Rationale for investmentFocus on good management teams is key for Calculus, a successful previous investment with members of this team was a strong factor in the investment decision. Calculus’ funding has supported Scancell through Phase 1/2 clinical trials for its melanoma vaccine SCIB1, with impressive results to date. It has also allowed the company to develop its Moditope™ platform, the lead product of which targets breast, ovarian and endometrial cancers. Scancell IPO’d on AIM in 2010 and its market capitalisation since investment has increased from circa £5m to £73m.

Growth in revenues and employmentScancell’s market capitalisation has increased from £5m to £73m and its team has grown 100%.

Value added by EIS managerIn addition to its fi nancial backing, Calculus appointed a non executive director to the board who combined fi nancial and pharmaceutical experience and who, together with the investment team, has provided support and advice to the management team.

Amount invested and any co-investorsCalculus fi rst invested in 2008 and made two follow-on investments. Calculus’ total investment was £6 million and the investment has been partially exited to date, winning the EISA ‘Exit of the Year’ in 2012.

Scancell Limited

Investment Date 2008 and follow-onSector Pharmaceuticals & BiotechnologyLocation NottinghamEIS Manager John Glencross, Calculus Capital Employees 12

www.scancell.co.uk


Scancell was founded in 1997 to develop the research of Dr Lindy Durrant and her team at Nottingham University. Scancell develops therapeutic vaccines to treat cancer and infectious diseases based on its proprietary ImmunoBody® and Moditope™ technology platforms. Testing of the lead compound SCIB1 based on the ImmunoBody® platform, targets melanoma and has indicated that it produces an immune response against malignant melanoma. Th e life spans of test patients have been extended ‘beyond expectation’. Th e Moditope™ technology produces cancer killing cells that destroy tumours without toxicity and it is believed that Moditope epitopes can be used to develop vaccines and could become an important component of many therapeutic vaccines in the future.

33

Fund Manager


sirigen.com

Rationale for investment• Clear route to exit, since an acquisition would be

possible once Sirigen demonstrated the potential to scale rapidly inside an acquirer

• Commitment from commercial partners was already demonstrated

• Th e management team was highly experienced in the fi eld.

• Extremely scalable business model, selling highly valuable reagents through commercial partners.

• Well-aligned investor syndicate.

Growth in revenues and employmentSince OCP fi rst invested in 2008 there has been:• CAGR 180% revenue growth• 2.5x increase in the number of employees

Value added by EIS manager• Active and supportive board member

particularly on issues of strategy• Providing balance to shareholder group

and Board• Built investor syndicates over several rounds.• In 2011, Oxford Capital and its co-investors

oversubscribed to fund the company through to exit

• Very active in exit negotiations.• Supportive shareholder, bringing syndicate

together

Amount invested and any co-investorsOxford Capital: £2.3 millionSeraphim, IQ Capital, NESTA, YFM and others: £9 million

Sirigen

Investment Date 2008 and follow-onSector Life SciencesLocation Ringwood, HampshireEIS Manager David Mott, Oxford CapitalEmployees 23


Sirigen develops and manufactures light harvesting polymers which have a wide range of applications in research, medical diagnostics and life sciences. Sirigen was acquired by Becton, Dickinson & Company in August 2012 at nearly 90x revenues.

34

Fund Manager


Rationale for investmentIndependent sector component of the primary care market is expected to grow at over 20% per annum. Key drivers for growth will be increased outsourcing, desire to reduce unnecessary and expensive A&E admissions, increase services in the community rather than in more costly hospital settings and re-commission underperforming and retired GP surgeries.

Growth in revenues and employmentSince MMC fi rst invested in 2006 there has been:• An increase in revenue from c.£400k to over

£25m• Th e business has grown from 18 employees to

over 800

Value added by EIS managerMMC has supported the business from an early stage £350k turnover business in 2006 to over £25 million. It has assisted throughout this growth period which has included acquisitions, change in management, refi nancing and a turnaround. It has strengthened the team throughout the business.

Amount invested and any co-investorsMMC: £9.7million

The Practice

Date of MMC Investment 2006 and follow-onSector HealthcareLocation AmershamEIS Manager Tom Hopkins, MMC Ventures Employees 843

www.thepracticeplc.com


Established in 2005 by two GPs who had a vision for improving the delivery of primary care, Th e Practice now work with local teams to run GP surgeries, walk in centres and community based outpatient clinics on behalf of the NHS. Th e Practice provides personalised care in the most appropriate setting, as close to the patients home as possible. Th e Practice adopts innovative patient care strategies and tailors service design and delivery to refl ect specifi c local requirements. Its aspiration is to improve patient outcomes, ensuring that it is able to deliver the best quality care to patients and real value for its NHS partners.• Over 1 million face-to-face patient contacts per year• 33,000 new referrals into its community services last year • 5% Did Not Attend (DNA) rate• 93% patient satisfaction (Apr-June 2013)

35

Fund Manager


www.tracsis.com

Rationale for investment• Parkwalk believed the acquisition of MPEC

provided an exceptional opportunity. Parkwalk expected a signifi cant increase in sales and believed diversifi cation would add to recurring revenues

• Extremely strong, motivated management• Small Cap growth company of the year 2013• Co. has increased revenues from £2.6m in 2010

to a forecast £16.0m in 2014

Growth in revenues and employmentSince Parkwalk fi rst invested in 2011:• Revenues increased 600% in 4 years • Number of employees increased 550% in 3 years• Current monthly payroll of approximately

£500,000 per month

Value added by EIS managerParkwalk regularly meets management and helps advise on strategy and acquisitions.Parkwalk introduced Tracsis to many of the company’s new Institutional shareholders.

Amount invested and any co-investorsParkwalk: £400,000IP Group, Downing and others: £2million

Tracsis plc

Investment Date 2011Sector Soft wareLocation LeedsEIS Manager Parkwalk Employees 200


Tracsis plc solves a wide variety of resource optimisation, data capture and reporting problems through technology led services and a range of associated professional services. Th e company reduces costs, improves effi ciency and enhances the operational performance of transport networks.

36

Fund Manager


Rationale for investmentTh e company had grown organically and without external funding up until the point of its IPO on AIM. We believe that the company possesses unique intellectual property that will be of increasing value to large corporate customers many of which are becoming increasingly dependent on maintaining online up-time. We believe the blue-chip nature of its customers, even at such an early stage of the company’s life, is indicative of the potential value of its technology. Th e company fl oated in May 2012, raising £15m at a share price of £1.80 and it has subsequently risen to over £11.00 a share. In its most recent update, WANDisco announced that bookings in the third quarter of 2013 had increased 120% year on year, driven primarily by the ALM business, but also achieving its fi rst Big Data bookings.

Growth in employmentEmployees at time of investment: 49 Employees now: 150

Value added by EIS managerParkwalk fi rst invested in Xeros in a Series ‘A’ round, and has followed its money in subsequent rounds. Parkwalk introduced EIS protection in the Shareholders agreement, introduced the company to potential customers and advised Xeros management on various funding options available to the company.

Amount invested and any co-investorsEIS amount invested: £0.45m. Company also invested into by the following Octopus products: Octopus AIM VCT & Octopus Second AIM VCT (£0.56m), Octopus Micro Cap Fund (£0.28m)

WANdisco plc

Investment Date May 2012Sector Soft ware & Computrer ServicesLocation Sheffi eldEIS Manager Paul Stevens, Octopus InvestmentsEmployees 150

www.wandisco.com


Headquartered in Sheffi eld, WANDisco (which stands for Wide Area Network Distributed Computing), specialises in providing continuous availability soft ware to address the challenges of distributed soft ware development and Big Data. WANDisco’s current core business is Application Lifecycle Management (ALM) soft ware, based on “active-active replication” – a solution previously thought impossible, that enables multiple soft ware engineers to work on the same code, wherever they are located, at the same time. Th e company has also developed a second application of this technology for the Big Data market. “Big data” is a term that is used to defi ne the enormous and growing swathes of unstructured data on the internet that companies and institutions are now trying to analyse for commercial, academic and defence purposes. Th is unstructured data can be searched through the internet framework called Hadoop. Although a very popular framework, Hadoop is vulnerable to down-time. WANDisco, solves this problem with the use of its active-active replication solution and therefore addresses the increasing demand for continuous up-time that is now being sought by large companies for which down-time, planned or unplanned, is very costly.

37

Fund Manager


www.amplience.com

Rationale for investment• Parkwalk was convinced by the huge potential

savings of a laundry system that used 10% of the water, 25% of the detergent and 50% of the power

• Water shortage and effl uent pollution are key global challenges

• Xeros is showing excellent traction with global multi-nationals and tier-1 equipment manufacturers, chemical companies and end-users

• Multiple revenue streams accessible to Xeros in >$100 billion markets

• Multiple potential new markets

Growth in revenues and employmentSince Parkwalk fi rst invested in 2010:• Xeros is starting to generate revenues from

global sales; and • a 400% increase in the number of employees

Value added by EIS managerParkwalk fi rst invested in Xeros in a Series ‘A’ round, and has followed its money in subsequent rounds. Parkwalk introduced EIS protection in the Shareholders agreement, introduced the company to potential customers and advised Xeros management on various funding options available to the company.

Amount invested and any co-investorsParkwalk: £1millionIP Group, Invesco Perpetual, Entrepreneurs Fund, Enterprise Ventures and others: £12million

Xeros Limited

Investment Date 2010 and 2013 Sector Chemicals & Materials Location Sheffi eld EIS Manager Parkwalk Employees 33


Xeros has developed a revolutionary ‘virtually waterless’ laundry cleaning system, which creates a step change reduction in water, energy and detergent use and cuts effl uent production compared to aqueous wash cleaning. Xeros came 2nd in the top 100 “2010 Best Inventions” by TIME Magazine and was cited in the WWF’s survey of global “Green Game-Changers”.

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Fund Manager


DFJ Esprit 14 Buckingham Gate, London, SW1E 6LB

Richard Marsh t. (0207) 931 8800 e. [email protected]

MMC Ventures Limited 2 Kensington Square, London, W8 5EP

Anna Slemmings - Sales & Marketing t. 0207 361 2220 w. www.mmcventures.com e. [email protected]

Ingenious 15 Golden Square, London, 1F 9JG

t. 020 7319 4303 e. [email protected]

Downing LLP 10 Lower Grosvenor Place, London, SW1W 0EN

t. 020 7416 7780 f. 020 7416 7652 e. [email protected]

Calculus Capital Limited 104 Park Street, London, W1K 6NF

Madeleine Coles - Head of Marketing and Investor Relations t. 0207 493 4940 e. [email protected]

Oakfield Capital Partners LLP Greyhound House, 23-24 George Street, Richmond, Surrey, TW9 1HY

t. +44(0)20 7084 7272 e. [email protected]

Oxford Capital Oxford Head Office, 201 Cumnor Hill, Oxford, OX2 9PJ

t. +44(0)1865 860 760 f. +44(0)1865 860 761 e. [email protected]

Octopus Investments 20 Old Bailey, London, EC4M 7AN

t. 0207 710 2863 e. [email protected]

Parkwalk Advisors Limited University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX

t. +44 20 7759 2285 e. [email protected]

Fund manager contact details

39


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Investing in the future of the UK - EIS Association · Amplience Ltd Investing in the future of the...

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