Henley in Arden, 26 March 2013. Venture capital fund manager Mercia Fund Management has announced its first EIS Fund investments as part of its Mercia Growth Fund 1.
Warwick Audio Technologies and nanoTherics will receive investment alongside syndicate investors.
Warwick Audio Technologies develops a unique Flat Flexible Loudspeaker technology, which is fundamentally a flat and flexible loudspeaker laminate that enables linear performance at low cost. The company’s technology is used by audio product manufacturers and is ideal for public and multiple listener spaces.
The investment facilitates the delivery of key commercial contracts in the ceiling speaker, audio visual and automotive sectors.
nanoTherics develops and retails magnetic nanoparticle-based products and associated instrumentation for the life-science research industry. Its innovative products have transformed the research practice in industry and academia in respect of investigations into cancer and gene-related diseases and disorders. This investment is key to the expansion of its sales infrastructure and products under development as the business continues to expand.
Mercia Growth Fund 1, the first hybrid fund offering EIS and SEIS opportunities, launched in 2012 and reached approximately £2 million in size.
Dr Mark Payton, Managing Director of Mercia Fund Management commented: “Warwick Audio Technologies and nanoTherics are truly exciting and transformational businesses now rapidly expanding their growth on the back of substantial commercial progress. We are fortunate and privileged to work with such companies to help them fulfil their growth ambitions.
“We have now launched two Growth Funds offering hybrid investment opportunities as they are not only ideal vehicles for professional investors, but also support the investees as they meet their business objectives.”
The VC firm manages a portfolio of institutional funds that also offer deal flow into its Growth Funds. Long-term partnerships with eight universities (including Warwick and Birmingham) offer a wide range of high-growth potential investment opportunities.
EIS investments offer several key advantages such as:
30 per cent income tax relief and capital gains tax deferral
Tax-free capital gain
100 per cent Inheritance Tax property relief
Substantial capital loss relief.
SEIS investments offer several key advantages including:
50 per cent income tax relief (no matter what your tax bracket is)
Capital gains tax loss for gains made in 2012/13 and invested in 2013/14
Tax-free capital gain
100 per cent Inheritance tax property relief
Substantial capital loss relief.
The second Mercia Growth Fund 2 was launched in March and is expected to close by June this year.
Mercia Fund Management is hosting a regular Open House event for companies seeking investment. The next event, for companies looking for SEIS and EIS investment, is on 16 April. To register, please visit: http://merciafundmanagementopenhouse.eventbrite.co.uk
NB: SEIS is Seed Enterprise Investment Scheme and EIS is Enterprise Investment Scheme
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About Mercia Fund Management
Mercia Fund Management (MFM) is a venture capital fund manager with over £17 million under active management.
MFM provides investment growth capital for businesses from those with early commercial traction through to those seeking expansion or working capital that are trading profitably. Furthermore, MFM can also provide cost-effective incubator accommodation at Forward House in Henley-in-Arden coupled with centralised support services in keeping with its model as a hands on, active investor.
MFM is an FSA authorised and regulated fund manager under FSMA (FRN: 524856).
www.merciafund.co.uk