Mercia EIS Performance

Mercia EIS Fund’s past performance is amongst the strongest in the industry, with early funds on target to achieve the 3x target including tax, with additional exits in progress. The oldest funds are performing well as milestones are achieved and share prices increase with subsequent funding rounds. Whereas, it is notable that unsuccessful companies normally fail quickly, suppressing valuations of more recent investments. Within the venture capital industry, this is known as the J-curve effect.

Performance Graph March 2020

Please note, past performance is not a reliable indicator of future performance.

The above graph illustrates that failures should be expected in the early years of the fund, which is in line with our venture capital investment strategy. Our funds are on target to achieve the overall goal of tripling invested capital in five to seven years, including tax reliefs. For our early funds, there is a progressive emphasis on transforming net asset value (NAV) into cash returns to our investors.

Mercia EIS investment case study: OXGENE™

OXGENE™ (a trading name of Oxford Genetics LTD) is one of Mercia’s leading portfolio companies, for both Mercia EIS Funds and Mercia Asset Management PLC, which is a synthetic biology company focused on developing innovative and scalable manufacturing solutions in the therapeutics markets, by using the company’s underlying genomics Lego-like DNA construction platform.

Over the period from 2013-2015, the business received investment from five EIS funds, and the company minimised how much funding was required, by continuing to expand sales revenue.

Following the EIS funds investment, Mercia Asset Management has invested on a number of occasions.

OXGENE™ now offers a suite of novel solutions for gene therapy drug discovery, antibody therapy development and CRISPR gene editing. OXGENE™ sought to address the age-old dilemma of how one brings better quality products to large markets, at volume in a cost-effective manner. They have achieved this uniquely by combining proprietary synthetic biology technology with robotics controlled by proprietary software. The have now developed a highly scalable automated process serving many clients operating almost on a 24/7 basis every day of the year.

Mercia has had the privilege of working from day one with Ryan helping to build the Board, C-Suite and business model to what has become a world leading, high growth business employing over 80 people.

Over the course of the 2019-2020 financial year, OXGENE™ has once again more than doubled its revenue, with less than a 50% increase in headcount.