Oxford Technology invests in high-risk, high-reward technology start-ups, in general, within an hour’s drive of Oxford, and has been doing this since 1983. The latest fund, OT(S)EIS, made its first investment in late 2012. By the end of January 2025, OT(S)EIS had completed 252 investments in 67 companies. Recent additions to the portfolio include TTP, a heated stretcher, one of those ideas that seem so obvious that it is surprising that it has not been done before. Hypothermia is a significant cause of death, for those injured far from home, esp soldiers.
The portfolio as a whole continues to thrive. The figures for the overall fund at the end of Q4 2024 are as follows:
- Invested Capital: £13.14m
- Total Oxford Technology and Custodian fees: £1.56m
- Cash from Tax Reliefs: £5.38m
- Cash from Exits: £2.31m
- Cash due from Exits: £2.86m
- Fair Value of Post-Exit Milestone Payments: £2.85m
- Remaining Equity Value: £25.32m
In addition, there is potential for a further £28.59m in milestones from the Ducentis exit.
Exits are typically expected on a 10-year timescale: investments in OT(S)EIS are illiquid and long-term. Nevertheless, the return multiples when exits occur can be considerable. For example a person who invested £25,000 in OT(S)EIS in 2014 would have had £5,000 of this invested in Ducentis. The outcome of this (after the deduction of all fees) has so far been:
Initial investment in OT(S)EIS (2014) £25,000
Of this, investment in Ducentis £5,000
SEIS and EIS tax refunds £2,000
Net cost of investment £3,000
Fees attributable to this investment £412
Total net cost of investment £3,412
Exit in 2022 – up front payment in cash and shares + milestones
Cash received so far (Jan 25) (tax free). £23,322
Shares in purchasing Co (as at Dec 24). £13,744
Value of 1st milestone £14,995
Potential future milestones and other payments. £587,684 (tax fee and after of all fees)
Total potential Return £639,745 (tax free)
The purchasing company has recently announced that the event triggering the first of the milestone payments is likely to happen in H2 25. This will result in a further milestone payment to the investor above of £14,995.
Oxford Technology remains open for investment at any time. Oxford Technology average about 1-2 new investments per quarter, and investors in the fund receive their pro-rata share of these. The latest quarterly report, with a page of information on each investment, is downloadable from www.oxfordtechnology.com.
WOTAN (Wider Oxford Technology Angel Network) At 10 am on the first Thursday of each month, Oxford Technology holds a Zoom meeting at which one or more of its existing investee companies give a WOTAN presentation seeking expansion capital, enabling investors to make direct EIS follow-on investments.
Email otseis@oxfordtechnology.com if you would like to attend.