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UK-Based Robotics, AI, and Automation Companies to Benefit from British Robotics Scale-Up Fund Deployment

LONDON & BELFAST, UK. October 17th 2023 – The latest tranche of the British Robotics Scale-Up Fund is raising funds to accelerate the growth of ten high-growth potential businesses developing productivity-boosting technologies particularly in the areas of robotics, artificial intelligence and automation.The Fund will make investments under the tax-advantaged Enterprise Investment Scheme (“EIS”) which substantially mitigates the risks to investors backing young, high potential businesses.  The Fund also seeks to build broad sector-diverse portfolios of company holdings in order to further reduce the risk for investors. In particular, the Fund will specifically invest in companies which can qualify as “Knowledge Intensive”[1] and thus can raise larger amounts for longer periods than traditional EIS qualifying companies[2]. This is advantageous to investors both because it allows for greater amounts to be invested under EIS and because access to great amounts of capital in the scale-up phase of a venture can lead to rapid value growth.

Over the past eight years, the British Robotics funds have invested in 40 companies, backing entrepreneurs creating productivity-boosting technologies, particularly in the areas of robotics, artificial intelligence and automation. The Fund will continue this technology focus and seek to capitalise on major global trends such as shortages of skilled labour, the transition away from fossil fuels, supply chain inefficiencies and the depletion of natural resources.

The Fund allows investors to subscribe between £10,000 and £2,000,000 into the fund each year with provided that all of the investment is going to “Knowledge Intensive” EIS-qualifying companies[3].This means that each investor will be able to offset at least 30% of the amount they invest in the Fund against their tax bill, as well as potentially also benefiting from subsequent tax benefits.

Rapidly-growing British businesses such as Chemastery, RAD Propulsion, Altered Carbon, Zelim and BladeBUG are likely to be recipient of the deployment.

Dominic Keen, Managing Partner of Britbots commented that “Robotics, applied artificial intelligence and automation will become increasingly important as an antidote to global productivity stagnation and skilled labour shortages. We’re looking forward to backing world-class talent to address these problems and deliver out-sized returns to investors.” ​

Boyd Carson of Sapphire Capital Partners added that: “The British Robotics Scale-Up Fund represents an opportunity for investors to take advantage of the large investment limit of the EIS Knowledge Intensive scheme, whilst benefiting from a unique, compelling investment thesis.”

Footnotes:
[1] Knowledge Intensive status was introduced as an addition to the Enterprise Investment Scheme by HMRC in 2017.
[2] Knowledge Intensive qualifying companies can raise up to £20 million of tax-advantaged investments over their lifetime (as opposed to the standard limit of £12 million).  Furthermore they can raise these funds over a ten-year period (rather than the standard limit of seven years).
[3] Each company expects to be classified as Knowledge Intensive but compliance is not guaranteed. ​

IMPORTANT INFORMATION

Investing in start-ups and early-stage companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up.​

The investments which are being discussed are targeted exclusively at investors who understand the risks of investing in early-stage businesses and can make their own investment decisions. Any pitches for investment are not offers to the public and investments can only be made through Sapphire Capital Partners LLP as the fund manager and on the basis of information contained in the information memorandum which is available on request.​

ENDS

This press release constitutes a financial promotion issued by Sapphire Capital Partners LLP. ​

Neither High Growth Robotics Limited, Sapphire Capital Partners LLP nor any of their members, directors or employees provide any financial, legal or tax advice in relation to the investments and investors are recommended to seek independent advice before committing or if they have any doubts as to the appropriateness or suitability of such an investment in relation to their specific circumstances.​

Investments made in investee companies via alternative investment funds may not be covered by the Financial Services Compensation Scheme (FSCS). For more details, please contact us or refer to their website: https://www.fscs.org.uk ​

​Contacts:
Dominic Keen, Britbots: dominic@britbots.com
Alex Pejacsevich, Britbots: alex@britbots.com
Britbots website: http://www.britbots.com​

Boyd Carson, Sapphire Capital Partners: boyd@sapphirecapitalpartners.co.uk​
Ben McMeekin, Sapphire Capital Partners: ben@sapphirecapitalpartners.co.uk​
Sapphire Capital Partners website: http://www.sapphirecapitalpartners.co.uk

Featured recipient businesses:
Chemastery – https://chemastery.com
RAD Propulsion – https://www.radpropulsion.com
Altered Carbon: https://altered-carbon.com
Zelim: https://www.zelim.co
BladeBUG: https://bladebug.co.uk

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UK-Based Robotics, AI, and Automation Companies to Benefit from British Robotics Scale-Up Fund Deployment

By Britbots Britbots Profile 23 Oct 2023