Frequently asked questions
Welcome to the Jenson Ventures FAQs page. Here, we address common questions from both investors and founders to provide clarity about our services, funds and overall mission.
For investors
SEIS – The SEIS Fund aims to target exciting new innovative and disruptive technologies on a sector agnostic basis. All companies will be small unquoted UK companies which have been trading for less than three years that qualify under the SEIS tax rules. The fund is a generalist fund focussing on tech enabled businesses. The type of businesses and opportunities will be SEIS compliant (typically small early stage companies in non-capital intensive sectors). The specific focus of the Fund is to target companies with: strong management, momentum in the business (i.e. not pure start-ups) and low risk for a start-up (e.g. have a low cash burn).
EIS – The EIS Fund typically provides follow-on funding to the top performing companies in Jenson’s existing portfolio. The fund had a mandate to focus on long-term capital growth and enables private investors to invest in a range of committed and ambitious entrepreneurs and their early stage growing companies. All companies will be small unquoted UK companies that qualify under the EIS tax rules. The Fund is a generalist fund with a tech enabled focus, thereby the sector focus is agnostic and the type of businesses and opportunities can be anything that is EIS compliant (typically small early stage companies in non-capital intensive sectors).
SEIS and EIS tax relief is eligible for carry-back if you have not utilised the prior years allocation. Investing in the 2024/25 SEIS & EIS Funds are eligible for carry-back relief to the 2023/24 tax year.
The Funds are evergreen and have tranched closures throughout the tax year, contact the team at clientservices@jensonventures.com to find out the next close date.
Participation in the Fund is restricted to individuals who can be categorised as having the expertise, experience and knowledge to make their own investment decisions and to understand the risks involved in relation to the Fund, such characteristics being those of elective professional clients under COBS 4.12A.22.
Jenson Ventures regularly monitor and re-evaluate the Investments to ensure that they perform to their expectations. This will include attending board meetings, informal meetings with management teams and a review of quarterly financials against budget. Jenson will be working closely with the Investee Companies by providing additional business support services.
Semi annual reporting is prepared by Jenson Ventures and is distributed to Investors every six months, this includes an up-to-date valuation, company updates and details of any exits, write downs or losses. A portal is currently being rolled out giving investors access to their latest valuations, certificates and other relevant documentation. Additionally the team are on hand to provide ad hoc updates and valuations.
To maximise the growth available to Investors, it is intended that funds will be returned to Investors as each investment is realised. Given the early stage nature of these investments, realisations could take five to seven years.
The minimum participation by an Investor in the Fund under SEIS & EIS is £10,000. Participation in excess of this amount must be in multiples of £1,000. There is no maximum participation in the Fund, but income tax relief is presently restricted to a maximum investment of £200,000 under the SEIS and £1 million under the EIS respectively. There is no limit on the amount of capital gains tax that can be deferred under SEIS, and no limit on the amount of business property relief for IHT purposes.
The Investors are the beneficial owners of shares in each Investee Company in which the Fund invests. Each Investor’s Investment will be in proportion to his/her investment in the Fund subject only to any rounding where there are insufficient funds to buy a whole share. However, to allow efficient administration, shares will be registered in the name of the Nominee who will hold the shares on an Investor’s behalf as the Investor’s nominee, subject always to HMRC rules for ownership from time to time. Further details of the nominee arrangement are given in Investment Memorandum.
Investments in the Fund cannot be jointly owned, but each spouse can make a separate investment, and each can receive income tax relief on the first £200,000 in respect of SEIS Qualifying Investments or £1 million in respect of EIS Qualifying Investments but is subject to the limit of the amount of income tax and CGT due to be paid in the tax year by each spouse.
For founders
The prime reason is to take equity investment to enable growth and work alongside a community of like minded founders. Investment from Jenson also comes with support and a network of advisers to help along the way.
The maximum investment under the SEIS scheme is £250,000 per company if it has been trading for less than three years with gross assets not exceeding £350,000 and less than 25 full-time employees. In return, the Jenson SEIS Fund is typically seeking a significant minority equity stake in the Investee Company of around 20% to 30% depending on the circumstances. You cannot receive SEIS funding if you have already taken EIS funding.
The maximum investment under the EIS scheme is £5 million per company with gross assets not exceeding £15 million and less than 250 full-time employees. The Jenson EIS Fund is typically seeking a significant minority equity stake in the Investee Company of around 15% to 40% depending on the funding, circumstances and performance.
Any UK based trading company is potentially eligible for funding but there are certain types of excluded business such as financial services, farming and property. More information can be found on our Founders Information Sheet.
There are quite a few procedures to be completed before an investment is made. We will need to work together to complete these quickly and efficiently, especially on due diligence. More information can be found on our Founders Information Sheet.
We have worked very hard to keep fees to a minimum. Our investee charges are as follows:
All fees are only due on successful completion and there are no upfront costs to apply to the Fund.
Jenson may provide additional services to support companies in raising follow-on finance in the external market, such as financial modelling, pitch deck preparation and promotion of the company to investor networks. Jenson will charge for these services, on a success only basis, and it is at the full discretion of the investee company to procure them or not.
We have arrangements in place to review any concerns you have during the investment process and you have the right to decline the investment up until completion. After the investment has been completed, monitoring will become a contractual obligation. However, any concerns or complaints will be taken seriously and we will replace the Jenson Advisor if it is appropriate in the circumstances.
We expect to report to the investors on progress every six months by carrying out a full valuation exercise on all companies in the portfolio, we then prepare investment reports in consultation with the Investee Company directors.
We will monitor cash flows carefully and help you secure additional funding if appropriate.
Investors must wait for at least three years before the tax advantages are crystallized on selling their shares. There is a business consideration when realising such investments but the general expected timescale for an exit is between five to seven years. We have considerable experience of realising investments and we will advise and help manage the process for you.