Venture investments are characterised by higher risk and higher potential returns than more “Standard” investments. Ventures are often early-stage investing into pre-revenue companies with the target being capital growth in lieu of cash returns. To counter the increased risks, VCTs, EIS funds, SEIS funds and single company investments are eligible for generous tax reliefs against income tax and capital gains tax. Cash equivalent tax relief also compensates investors for the illiquid nature of unlisted shares. Returns show low, or no market correlation.
The Seismic Growth Fund is a non-UCIS AIF investing in early stage advance assured SEIS and EIS qualifying companies. Our ambition is to apply progressive funding and support to high growth UK based companies and see the Fund investors realise a 4-fold return on their investments. When you add to this the upfront tax reliefs, loss reliefs and capital gains free exits, we believe that SEIS and EIS investing serves both the entrepreneur and the investor.
Unusually, our Investors have the option to invest either into single fundraises or to spread their investment risk across the portfolio. The fund follows on from more than 20 successful SEIS and EIS fundraises into companies championing innovation across engineering, products and digital platforms. Since we co-invest in all of our investee companies, and take an active role as Investor Director, we are able to maintain proximity to our venture investments.
Seismic has raised funds for a variety of early-stage companies in the categories of Digital Platforms, Energy & Engineering, and Products & Leisure.
Investing in early-stage companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Seismic's offerings are targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions.
View the full Risk warning here.