ARIE Capital is launching its latest EIS investment fund for 2020. As advisers look to tax year end planning, many will be interested to see that qualified UK-based investors can take advantage of the current EIS legislation to invest in a wide range of companies via ARIE Capital’s access to technology opportunities.
At the same time, qualifying UK-based companies (with certification from the HMRC) can use the EIS regulations to help attract investment.
The intention of the fund’s managers is to benefit both investors and companies by providing a tax-efficient investment structure that will help all parties to thrive.
Why Arie Capital?
ARIE Capital began investing in technology companies in 2016, following on from two early technology investments that its parent company, Taurus Asset Finance, made in 2013. Taurus proceeded to launch a venture capital fund in 2014 and EIS funds too started to be raised in 2014.
As Stephen Margolis, Chairman and Founding Partner, ARIE Capital explains: “I partnered with Simon Tobelem -our CEO – in 2014 to launch ARIE Capital as a venture capital fund. We decided to look to raise money for the fund in China in 2015 with the result that $32M was raised for investment. The first investments were made in 2017 by the venture capital fund and now runs at an IRR in excess of 80%. The concept of having an EIS Fund is to support and supply the bigger fund with investment opportunities”.
Since 2013, the company has made fifteen technologybased investments. Their dedicated and experienced team is proud of its vibrant and diverse portfolio, which is focused on the development of EIS opportunities and to cultivate exciting new technologies. Two exits have already been made – via sale of Redux to Google in 2017 which provided upside for both EIS investors and the main venture capital fund. Sale of Flo Live in 2019 provided upside for the main venture capital fund.
ARIE Capital is partnering with companies and founders that are well known to them and which have already shown considerable growth and development. The aim is to help nurture these companies so that they will be ready for further funding in the future (from ARIE Capital itself or other investors).