Gaming industry crowdfunding business GamCrowd has partnered alternative investment fund manager Innvotec to launch the first Seed Enterprise Investment Scheme (SEIS) targeting the gambling sector. The GamCrowd 2015 SEIS Fund has been established through a joint venture between the partners, with GamCrowd already working on assessing investment opportunities based on regulatory and licensing requirements as it looks to help raise a total of £1.5m to invest in start-ups and early-stage companies. Part of the investment will come via GamCrowd’s crowdfunding platform.
SEIS was launched by the UK government in 2015, designed to help small businesses raise equity finance by offering tax relief to individual investors, with higher rate taxpayers able to claim a minimum of 72.5 per cent of their investment back from Her Majesty’s Revenue & Customers should a start-up fail. Should it succeed, investors do not pay capital gains tax on any profits.
GamCrowd’s team, led by chief executive Chris North and chairman Ian Hogg, will aid Innvotec by evaluating start-ups looking for funding, as well as assisting businesses through the pre-funding process and helping these companies deliver objectives agreed to secure the investment.
“SEIS is one of the most advantageous tax schemes available to investors anywhere in Western Europe,” North commented. “Because of the UK government’s generosity and enthusiasm to funnel tax payers’ money towards UK start-ups, many specialist funds have been started. But, until now, none has existed in gambling, despite it being a huge industry.
“The gambling industry has a history of creating scalable, high growth companies which are highly cash generative and not capital intensive. However, the sector is often avoided and under-invested in by traditional institutions. GamCrowd and Innvotec is a powerful combination and it is this opportunity which the Fund seeks to harness.”
GamCrowd’s joint venture partner Innvotec has been making venture capital investments since 1989.
“GamCrowd’s collective knowledge of the gambling business is second-to-none,” the business’ chief executive John Marsden said. “It can help secure maximum value for our Fund’s investors by rigorously investigating all opportunities and ensuring that the highest standards are met.”
source : www.gamingintelligence.com
