'Funding Alpha' JV Launched to Match Investors with Dynamic Start-Ups Through SEIS

LONDON--(BUSINESS WIRE)--A UK-based joint venture launched this week is targeting investors to back British start-ups. Funding Alpha has identified a number of early stage investor ready companies eligible for investment under the Government’s Seed Enterprise Investment Scheme (“SEIS”), launched earlier this year.

“Britain’s tax breaks for start-ups are among the best in the world, according to the Tech City Investment Organisation. Following the Government’s SEIS tax scheme, investing in dynamic UK start-ups has never looked more opportune. Funding Alpha’s portfolio now creates an easy way for investors to back SEIS companies.”

Funding Alpha is a joint venture established between EGR Capital, the private investor EIS specialist, and the Startup Funding Club Ltd., which specialises in first funding for start-ups.

By utilising Funding Alpha’s proprietary skills and expertise, professional practices with tax reserve schemes, their members and other high-bracket tax payers, will gain exclusive access to a portfolio of HMRC approved SEIS qualifying companies through the joint venture. Startup Funding Club Ltd. will provide broad commercial and technical expertise to complement EGR Capital’s FSA, corporate and advisory specialism.

Stephen Page from Funding Alpha said: “There is no doubt that the Olympics have created a positive view of Britain. The benefits of that confidence should filter all the way down to start-ups. Funding Alpha provides qualifying investors access to SEIS tax benefits and exceptional opportunities to back dynamic companies that could become household names of the future.”

Headquartered in London, Funding Alpha has identified a broad portfolio of 15 UK-based early stage companies some of which are already generating revenue, and some of which are expected to do so later, all carefully selected for their future growth potential and without the typical fund costs applied.

Included within the portfolio is a mobile radio app with a household DJ name as one of the founders; a mobile phone firm with ground breaking technology; e-commerce British designer goods companies; a revolutionary gaming platform, the brainchild of an 18-year old former Etonian; an established marketing agency; and a primary school film initiative, headed by a well-known and OBE-decorated female entrepreneur. To fulfil SEIS criteria, the target companies are less than two years old, have a maximum of 25 employees, are unquoted and have assets of less than £200,000.

Page added: “Britain’s tax breaks for start-ups are among the best in the world, according to the Tech City Investment Organisation. Following the Government’s SEIS tax scheme, investing in dynamic UK start-ups has never looked more opportune. Funding Alpha’s portfolio now creates an easy way for investors to back SEIS companies.”

“Qualifying investors now have a unique opportunity to spread their risk by investing in home grown, dynamic companies of tomorrow. High income tax bracket individuals, such as members of professional practices with established tax reserve or retention schemes, could really benefit”.

Funding Alpha provides investors with a range of financial services including expert monitoring through investment reports, the option to invest either equally across the portfolio or indicate a preference for particular investment. Portfolio companies will receive advice, mentorship and management where required. The new joint venture does not charge upfront fees, like conventional fund managers, nor does it levy arrangement or carried profit-participation charges. A post-investment annual 1.5% monitoring fee, which covers both maintenance of the start-up’s tax basis and quarterly reporting, will however be applicable.

For more information on Funding Alpha, please visit: www.fundingalpha.co.uk

NOTES TO EDITORS

Seed Enterprise Investment Scheme

Further information on Seed Enterprise Investment Scheme is available for download at: http://www.hm-treasury.gov.uk/d/seed_enterprise_investment_scheme.pdf