The Deepbridge Technology Growth EIS is a discretionary portfolio service which will invest into a small portfolio of up to nine underlying companies, focussing on three sectors: resource and energy innovation, medical technology and high growth IT- based solutions.
Investing: Deployments take place on a monthly basis, so new money will usually be invested within that period ; Diversification: Portfolio of between three and nine companies ; Valuation: Unprofitable companies will be held at cost or at last relevant transaction. Profitable companies use a discounted average multiple from relevant companies.
Fees: Only the performance fee is not charged directly to the company ; Performance fee: Performance fee of 20% on gross returns over £1.20 on a per company basis.
Risk mitigation: Deepbridge aim to mitigate risk by active ongoing support of the company and choosing conservative business plans. The companies are revenue generating, but still immature with the risks that brings ; Target return: The target return for the fund is £1.60 for each gross £1 invested over 3-4 years. Individual companies tend to have much higher targets, reflecting that success in a company will give an excellent return, but there is a real risk of loss in any project.