The EIS Navigator

In the fourth of basics mini-series for the EIS Navigator we discuss Venture Capital Trust (VCT) tax reliefs. Mercia manage the three Northern VCTs, so we asked their head of investor relations, Paul Mattick, to come on and explain how they work. VCTs are the most popular of the tax advantaged schemes, so it's great to get someone with such deep knowledge to explain the reliefs.The topics we cover in the discussion include:what is income tax relief?what are the limits on the tax reliefhow offer periods interact with thatwhat is the tax position on dividendswhat dividend strategies do we see in the marketwhether capital gains is payableAs well as explaining the reliefs, Paul brings in a few important nuances which will help many investors. Enjoy!LinksMercia Asset Management - https://mercia.co.uk/HMRC page on Venture Capital Trusts: https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm50000HMRC page on tax reliefs for venture schemes: https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investorsSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenYou can see this episode on video too here. The playlist for all the videos of the Basics series will be found here. BioPaul MattickHead of Sales and Private Investor Relations, Mercia Asset ManagementDr Paul Mattick heads the Sales and Investor Relations team for the Mercia EIS Funds and VCTs. He works directly with private clients and advisers to build the EIS fund raising capacity of Mercia. Paul oversees the administration and development of the EIS funds, and ensures that investors receive a high level of service, much of which is delivered through Mercia’s award-winning Investor Centre.Paul has a variety of experience in early-stage businesses (including being a founder), and formerly worked at another leading EIS fund manager, where he built close relationships with top tier clients, and significantly grew both fund and single company assets under management. Paul has a PhD and Post-Doctorate from the University of Oxford and a 1st Class Bachelor of Science from the University of Leeds.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.For more information, please read our full disclaimers:www.hardmanandco.com/research-disclosures www.hardmanandco.com/disclaimer

In the third of basics mini-series for the EIS Navigator we introduce Venture Capital Trusts (VCTs). Foresight Group manage four VCTs, so we asked Nel Isaac to come on and explain what they are about. VCTs are the most popular of the tax advantaged schemes, so it's great to get someone with such deep knowledge to give us a primer.The areas we cover in the discussion include:what is a Venture Capital Trust?what a VCT can invest in?the restrictions on a VCT's cash holdingsthe different strategies that we see in VCTswhat areas VCT managers invest intocomparing EIS and VCT strategieshow an investor can buy sharesreturns from dividendshow to sell sharesAs well as explaining the reliefs, Nel brings in lots of examples. Enjoy!LinksForesight Group - https://www.foresight.group/Contact Nel - https://www.linkedin.com/in/nel-isaac/ HMRC page on Venture Capital Trusts: https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm50000HMRC page on tax reliefs for venture schemes: https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investorsSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenYou can see this episode on video too here. The playlist for all the videos of the Basics series will be found here. BioNel IsaacSenior Strategic Partnerships Manager, Foresight GroupNel Isaac is a Senior Strategic Partnerships Manager at Foresight, based in London. Nel has been with the business for 10 years and is currently responsible for managing relationships with key networks and national advice firms across the UK.Nel holds a BSc in Anthropology from the University of Southampton and the Investment Management Certificate (IMC) qualification part one.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.For more information, please read our full disclaimers:www.hardmanandco.com/research-disclosures www.hardmanandco.com/disclaimer

This is the second in the new basics mini-series for the EIS Navigator. This episode follows on directly from episode 115 and we go into the tax reliefs that are available on investments using Enterprise Investment Scheme (EIS). For many investors, these are one of the main attractions of the scheme and the reliefs are amongst the most generous in the world. Remember, video is also available alongside the Hardman Talks videos on youtube so check them out there.In this episode, host Brian Moretta flies solo, giving a run through of the reliefs. These include:what is income tax relief?how capital gains deferral relief workswhat is loss reliefwhat is the tax position on dividendshow Business Relief can give EIS investments exemption from IHT As well as explaining the reliefs, Brian brings in lots of examples. Enjoy!LinksHMRC page on Enterprise Investment Scheme: https://www.gov.uk/guidance/venture-capital-schemes-apply-for-the-enterprise-investment-schemeHMRC page on tax reliefs for venture schemes: https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investorsSubscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenYou can see this episode on video too here. The playlist for all the videos of the Basics series will be found here. https://www.youtube.com/watch?v=Dl7R2kXs_0I&list=PLuaVVfQg5eE8sL-3R2c25u7jcIgqJAxLvBioBrian MorettaHead of Tax Advantaged Research, Hardman & CoBrian Moretta is the Head of Tax-Advantaged Research at Hardman & Co, and also covers Financials stocks and Investment Funds.In addition to his role with Hardman & Co, Brian is an Honorary Fellow at Heriot-Watt University, where he lectures on actuarial science and financial economics. He has also been an examiner for the Faculty & Institute of Actuaries.Brian has had a 25-year career in Financial Services, including more than a decade as a fund manager. He specialised in analysing financial services companies at SVM Asset Management, as well as managing two traded endowment funds and an equity fund, and working on hedge funds. He has also been a Trustee and Board Member for Scouts Scotland.Brian joined Hardman & Co in 2013. A qualified actuary, he holds a PhD in Applied Probability and a BSc in Actuarial Maths and Statistics from Heriot-Watt University.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.For more information, please read our full disclaimers:www.hardmanandco.com/research-disclosures www.hardmanandco.com/disclaimer

This is the first in a new mini-series for the EIS Navigator on basics. We had some feedback from listeners that they would like to have more introductory material to EIS, VCTs and SEIS. In the EIS Navigator Basics, we will do shorter episodes discussing the how the schemes work, the tax reliefs available, what restrictions there are and how you invest. Episodes will run weekly and we are also trialling video alongside the usual audio releases. Video will be available alongside the Hardman Talks videos on youtube so check them out there.For our first episode, we have an introduction to the Enterprise Investment Scheme (EIS) with Nic Pillow who is Senior Ventures Manager at Blackfinch Ventures. He has lots of experience in the industry so is well placed to tell us what its all about.Amongst other topics, we talk about:what is the aim of the EIS?what sort of companies can you invest in under the scheme?what is a knowledge intensive company?what are the size or other limits on companies?how do you find EIS companies to invest in?the need for Advance Assurancewhat are realistic holding times?As well as explaining the scheme, Nic brings in lots of examples. Enjoy!LinksHMRC page on Enterprise Investment Scheme: https://www.gov.uk/guidance/venture-capital-schemes-apply-for-the-enterprise-investment-schemeHMRC page on tax reliefs for venture schemes: https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investorsBlackfinch Ventures website: https://blackfinch.ventures/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenYou can see this episode on video too here.Please note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments. Your capital is at risk. Past performance is not a reliable indicator of future performance. Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation. Listeners must make their own independent decisions and obtain their own independent advice regarding any information, projects, securities, tax treatment or financial instruments mentioned herein.For more information, please read our full disclaimers:www.hardmanandco.com/research-disclosures www.hardmanandco.com/disclaimerThe playlist for all the videos of the Basics series will be found here.BioNic PillowSenior Ventures Manager, Blackfinch VenturesNic has over two decades of experience in creating value for start-up, fast-growth and multinational B2B technology companies. Since joining Blackfinch Ventures in 2019 he has helped launch and manage the Blackfinch Spring VCT, he has supported over 100 investments into high-tech Seed and Series A stage companies, and he has been an observer on the boards of numerous portfolio companies. Previously, Nic co-founded his own startup, Rhizome Live, a Software-as-a-Service business in the Education Tech sector. He raised £400,000 and gained access to a top accelerator. Prior to that he led a global team at Nokia which exercised portfolio control over 15 software products that grew in annual revenue from £50 to £250 million. He has also held roles including Product Manager at Logica and Solution Architect at Portal Software. Nic holds a first-class degree in Engineering & Computing from the University of Oxford and a Ph.D. in Computer Vision from the Robotics Research Group at the University of Oxford.

The EIS Navigator host is taking a break, so there will be no episodes of the podcast. We will re-release a few episodes from the back catalogue. We'll be back in the autumn and are planning a great new series on EIS basics, so watch out for that.Have a great summer!LinksCheck out back episodes at https://hardmanandco.com/podcast/.Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaNine Lives: My Time As MI6's Top Spy Inside al-Qaeda by Aimen Dean

While software may not eat the world, sometimes it seems like it has eaten the venture industry. However, hardware has its merits too. Climatetech investor OnePlanetCapital invests in both, so CEO Matt Jellicoe is well placed to compare them. Amongst other topics, we talk about:finding skilled teams for hardware companiesbuilding and scaling hardware companiessources of IP and protecting itwhether to work with partners or notwhere the real challenges in supply chains aredealing with cash requirements at different stagesthe support available in the UK for hardwarehow climatetech products need to be no-brainersgetting good gross marginsscaling climatetech companiesMatt brings great insights with deep use of several real life examples to make his points clearer. Enjoy!00:45 Matt introduces himself and OnePlanetCapital03:15 Framing hardware vs software07:00 Finding skilled teams 12:00 Sources of IP and protecting it15:30 How partners affect options for exit18:10 Supply chains - where the real challenges are21:15 Timescales for hardware vs software24:00 How technology is affecting development times26:15 Cash requirements at different stages27:30 InnovateUK, grants and support within the UK30:30 Funding at later stages33:00 The need for climatic products to be no-brainers36:15 Getting good gross margins38:00 Challenges of bringing climatetech solutions to market at scale40:30 Are the trends still going in the right direction? Effect of venture bubble44:00 favourite questionsLinksOnePlanetCapital website: https://www.oneplanet.capital/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaPsychology of Money by Morgan HouselBioMatt JellicoeCEO, OnePlanetCapitalAfter a corporate career in public companies, Matthew founded and successfully exited two technology businesses in 2012 and 2018 respectively. He has been an active technology investor since 2012 and serves as a Non-Executive Director for two technology businesses. In more recent years he has specialised in sustainable investments.Matt Jellicoe is one of the founding directors of OnePlanet.Capital - a climate change focused EIS Investment Fund. The fund aims to combine strong investment returns with climate and environmental impact.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments.  Your capital is at risk. Past performance is not a reliable indicator of future performance.  Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation.

With climatetech being one of top areas of investor interest, it was time we checked in to see how things are. Dr Nicky Dee is co-founder and CEO of venture builder and fund manager Carbon13. With 25 years of experience in the space, she is very well placed to take a perspective beyond the here and now.Amongst other topics, we talk abouthow venture building programmes workhow climatetech has become more commercialthe role of government in developing the spacewhat are the clear trends just nowopportunities in carbon credits, Carbon Border Adjustment Mechanism and Extended Producer Responsibilityfunding hardware developmentinternational manufacturing how US politics are affecting the spaceIts a great discussion: Nicky's deep and broad experiences give great insights into climatetech. Enjoy!00:55 Nicky introduces herself02:30 Introduction to Carbon1304:30 How venture building programmes work09:30 What does impact mean to you?13:00 Are people looking at climate investing more commercially now16:15 the role of government in driving things forward19:30 where are the trends in needs clear just now23:30 commercial drivers28:00 Carbon Border Adjustment Mechanism , extended producer responsibility32:30 hardware issues and handling capital intensivity36:20 international manufacturing challenges39:10 pushback in the US against climate change and DEI - do we look at other markets?43:30 navigating the near term uncertainty45:00 favourite questionsLinksCarbon13 website: https://carbonthirteen.com/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Blue Commons by Guy StandingBioDr Nicky DeeCo-founder and CEO, Carbon13Nicky has over 25 years of experience engaging with startups and stakeholders to drive sustainability and innovation in ESG. Viewing entrepreneurs as catalysts for transformative shifts, she co-founded Carbon13 in 2019 to apply venture building to protect earth’s vital systems. As CEO the organisation has grown to 84 portfolio investments with a total market value over £200m and 1,000 founders trained with hubs of activity in Cambridge, London and Berlin. Before Carbon13 she pioneered new initiatives spanning innovation prizes, startup acceleration, climate tech investments, and corporate venturing with organizations like UNEP, UK government, World Bank, etc. She has a PhD from the Institute for Manufacturing at the University of Cambridge (IfM) and a Natural Sciences degree which underpins her interest and evaluation of technology based solutions and impact methodologies. She serves as a Fellow with the University of Cambridge Institute for Sustainability Leadership.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments.  Your capital is at risk. Past performance is not a reliable indicator of future performance.  Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation.

Richard Hoskins has worked in several roles in his two decades in the EIS industry. We talk about his perspective on how it has changed and what more we can do to grow UK venture capital. He also has some exciting news about his business, Kin Group, which he shares with listeners.In a wide ranging discussion we talk about:how EIS has evolved over the past 20 yearswhere the EIS rules need streamlininghow to get more GP/LP fundsthe way technology and regulation interact for VC managersthe growth in private marketswhat the changes at Kin mean for the groupinternationalising fund management businessesIts an great discussion with someone who is both a fund manager and an entrepreneur. Enjoy!00:45 Richard introduces himself02:20 Introduction to Kin06:40 advantages of in-house developers07:30 changes in the EIS market over time13:30 the need for streamlining EIS rules18:00 effects of costs for GP/LP funds20:30 how fund managers complement fund mentors/advisers25:00 technology in the VC industry and interaction with regulations31:00 growth in private markets and challenge of liquidity35:00 smaller VC funds35:40 changes at Kin and what it means for the group40:00 internationalising the business45:00 prospects for the EIS market50:30 favourite questionsLinksEmail: rhoskins@kin-group.co.ukLinkedIn: https://www.linkedin.com/in/hoskinsrichard/Kin Group website: https://www.kincapital.co.uk/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaCan't Hurt Me by David Goggins(There is a swear free version too for those who prefer it.)BioRichard HoskinsCo-Principal, Kin GroupRichard is Co-Principal and Co-Founder of Kin Group. Having worked in Venture Capital for 17 years, he has seen the Venture industry move from the niche sector it once was, to the booming asset class it is today. He has worked in a variety of VC roles, including; fundraising, fund management and fund administration. He has been described as “one of the most knowledgable commentators on the venture capital world” (Telegraph, 2017). In particular he has helped numerous aspiring VC asset managers setting up their first VC fund and assisted larger VC asset management firms grow to the next level. DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments.  Your capital is at risk. Past performance is not a reliable indicator of future performance.  Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation.

We have been talking about the lack of women in venture capital for far too long. Although we have tried to add to that on the #EIS Navigator podcast, its taken several attempts to get something out. We are delighted that entrepreneur, investor and soon-to-be Investment Committee member at Sustainable Ventures, Julia Groves joins us to discuss where we are, why this is still a thing and what should be done about it.In a wide ranging discussion we talk about:where we are with female participationglass ceilingshow the Rose Review didn't fix the problembringing female investors into venture capitalthe lack of knowledge about EIShow women investors get advicethe relationship to diversity to other issuesthe recent pushback against DEI, ESG and environmental issues generallyencouraging female founderspossible strategies to improve mattersIts an great discussion with someone who is passionate about entrepreneurship, the environment and diversity. Enjoy!00:55 Julia introduces herself03:15 Sustainable Ventures04:15 Where are we with female participation entrepreneurship 07:30 Female investors vs entrepreneurs10:15 Glass ceilings and other diversity issues14:00 How do we fix the problem?15:00 Rose review - great data but where's the effect?22:00 Bringing female investors into venture investing23:20 The lack of knowledge about EIS27:00 Access to advice for female investors31:00 Linking diversity to wider environmental issues33:10 Pushbacks against DEI and environmental issues36:00 How the environment has changed for women - pulling up the ladder43:00 Encouraging female founders and getting them to raise money48:00 Pools of progress vs overall stats51:45 Could disclosures help56:30 favourite questionsLinksSustainable Ventures - https://www.sustainableventures.co.uk/Julia on LinkedIn - https://www.linkedin.com/in/juliasgroves/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaThe Wind-up Bird Chronicle by Haruki MurakamiThe Lean Startup by Eric RiesBioJulia GrovesInvestment Committee member, Sustainable VenturesJulia brings over 20 years experience in the renewable energy and responsible finance sector.  A successful entrepreneur with three exits under her belt, she set up the Sustainability team at the British Bank, has served on the Nesta Impact Investment Committee for 3 years, and has recently joined Sustainable Ventures as Investment Partner.  With a career spanning venture capital and private equity she has been at the forefront of shaping responsible investment strategies and regulatory innovation. Previously a Partner and Head of ESG at Downing LLP  Julia has raised substantial capital for pioneering businesses, backed early-stage ventures and as an angel investor led high-growth companies through critical transitions. As a serial entrepreneur in wind turbine and solar businesses she has consistently and susscessfuly secured investment and strategic partnerships to expand companies market reach and ultimately their impact. She also volunteers as a mentor for Expect Impact.DisclaimerPlease note this podcast/interview does not constitute a financial promotion and is provided for informational purposes and should not be construed as an invitation or offer to buy or sell any investments. Please be aware that investments into unquoted companies are high risk, long term and illiquid investments.  Your capital is at risk. Past performance is not a reliable indicator of future performance.  Target returns are not guaranteed and forward looking statements are illustrative only and must not be relied upon. Investors should only invest on the basis of reading the full offer documentation.

Although we generally focus on the investment aspects of EIS and VCTs, the recent budget brought a renewed spotlight onto the tax benefits. Rakesh Murria, COO of Ascension Ventures, has been looking at how the to use the reliefs in a more sophisticated way than the simple scenarios that generally get discussed. In this episode, he runs through some scenarios for us, illustrating how tax advantaged products can be used to reduce investor tax bills.In a wide ranging discussion we talk about:tax reliefs for EIS, SEIS and VCTshow they may help with those with pension assets that were earmarked for inheritancemitigating CGT on carried interest (and how they may help when that changes too)how to use Business Investment Reliefhow EIS is an alternative to AIM for IHT reliefRakesh discusses these issues with advisers regularly so has some great insights. Plenty of ideas for both investors and advisers.00:55 Rakesh introduces himself01:40 what Ascension does03:40 summary of EIS and SEIS tax reliefs06:00 CGT reliefs12:20 VCT tax reliefs14:00 Example 1 - addressing changes to pensions20:00 ways of diversifying26:30 Example 2 - mitigating CGT on carried interest30:00 extra example for large earners32:30 Example 3 - Business Investment Relief40:00 Example 4 - EIS as an alternative to AIM for IHT relief49:00 favourite questionsLinksAscension Ventures - https://www.ascension.vc/Links to webinar on tax planning - https://youtu.be/jPupRUp51HY?si=WijvDB2tq0ZdxTrT or https://www.ascension.vc/advisers/Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listenSuggested books and mediaMaterial World by Ed ConwayBioRakesh MurriaChief Operating Officer, Ascension VenturesRakesh is the COO of Ascension (ascension.vc), where he oversees operations across their tax-efficient and institutional funds. With over 20 years in the technology, media, and telecoms sector, he’s held senior roles like Director of Product at EE, shaping their mobile, broadband, and TV offerings.He’s also co-founded a FinTech start-up, spearheading its growth and raising £3m in funding, and has spent years advising early-stage tech companies. From corporate boardrooms to start-up hustle, Rakesh brings deep experience and practical insights to scaling businesses and driving innovation. DisclaimerThe tax planning scenarios provided in this podcast are for information only and only apply in particular circumstances. This can be a complex area and you should speak to a knowledgeable professional before using these in practice.