Braveheart Investment Group plc, a listed (AIM: BRH) technology commercialisation and investment management company, announced the launch of its HM Revenue & Customs (HMRC) approved Beta Enterprise Investment Scheme (EIS) Fund.
The fund, which is a successor to the Alpha EIS Fund, will principally invest in technology-based companies having the potential to make significant capital gains in the next five years.
The new vehicle will operate providing follow-on funding to selected portfolio companies (Braveheart currently has interests in 48 companies) and making new investments.
In order to comply with the legislation, the manager of the fund, which will be Braveheart Ventures Ltd, a wholly owned subsidiary of the Group, will seek to invest at least 90% of the fund within 12 months of its closing, making a minimum of four investments.
The minimum subscription to the fund is £10,000 and the maximum is £500,000 per individual (or £1m per couple). UK investors will be able to take advantage of the favourable tax treatments associated with the EIS regime.
It means that investors can back high risk/high reward companies in a tax efficient way. If the investment fails, the investor can set the loss against tax: on the other hand, if the investment comes good, the investor can realise the gain without, in most cases, paying tax on the profit.
The fund will close to applicants on 31 March 2010.