Tax effective investing: share in the future of Oxford University spin-outs
17th February 2014
For the first time, private investors will be able to make tax efficient investments in range of new Oxford technology companies via a dedicated fund, the University of Oxford Isis Fund, set up by Parkwalk Advisors and Isis Innovation, the University’s research commercialisation arm.
The outcomes of this type of early investment can be seen in recent successes from the University of Oxford’s spin-out portfolio such as Natural Motion which was recently acquired by US games company Zynga for $527m, Oxford Immunotec which listed on Nasdaq late last year in a $64m initial public offering and Oxford Nanopore which is developing a much-anticipated mini gene sequencer.
The fund will invest across all areas of technology and intellectual property from Oxford including new Oxford-based software companies. Recent Isis spin-outs include Oxcept, a company developing technology for making payments using your mobile phone, Oxehealth, which is developing an app which allows your computer or iPad to remotely monitor your vital signs including heart rate and respiration, and Run 3D, Europe’s first computerised three-dimensional motion analysis service for runners.
Parkwalk’s Moray Wright said: “We are delighted to be working with Isis Innovation to offer alumni and friends of the University the opportunity to participate in the exciting opportunities emanating from Oxford University.”
Isis Managing Director Tom Hockaday, said: “The University of Oxford Isis Fund will provide University inventors and entrepreneurs with vital early investment, and investors with the opportunity to invest in a range of new companies as they spin out from the University, via a dedicated fund.”
Parkwalk currently manages 9 EIS funds, including 2 with Cambridge Enterprise, the technology transfer subsidiary of the University of Cambridge. The funds have invested in 27 companies and all of the fully invested funds are currently valued above investment cost.
Portfolio companies include Xeros, a University of Leeds spin-out which has launched a near-waterless washing machine and which is currently considering an IPO and Aqdot, a Cambridge spin-out developing unique chemistry for encapsulating, storing and releasing drugs and other chemicals.
Further details about the University of Oxford Isis Fund:
- The minimum subscription to the Fund is £25,000
- The fund will start investing in qualifying companies in Q2 2014 (in the 2014/15 tax year).
- Isis Innovation will be the Portfolio Advisor for the fund.
- Parkwalk manages 9 EIS funds, including 2 with Cambridge Enterprise, the technology transfer subsidiary of the University of Cambridge. All of the fully invested Funds are currently valued above investment cost.
Enterprise Investment Scheme Benefits
- 30% Up-front Income Tax relief
- Capital Gains Tax (CGT) deferral of unlimited gains
- Capital Gains Tax free gains
- Loss relief providing up to 61.5% total tax relief for a 45% taxpayer
- 100% Inheritance Tax (IHT) exemption after two years
Seed Enterprise Investment Scheme Benefits
- 50% Upfront Income Tax relief
- Capital Gains Tax (CGT) re-investment relief
- Capital Gains Tax free gains
- Loss relief providing up to 86.5% total tax relief for a 45% taxpayer
- 100% Inheritance Tax (IHT) exemption after two years
About Isis Innovation
Isis Innovation is the research and technology commercialisation company of the University of Oxford. We provide access to technology from Oxford researchers through intellectual property licensing, spin-out company formation and material sales, and to academic expertise through Oxford University Consulting.
Isis is the highest university patent filer in the UK and is ranked 1st in the UK for university spin-outs, having created more than 100 new companies in 25 years. In the last financial year we completed 395 licenses and consulting agreements with clients in 21 countries. The Isis Enterprise innovation management consultancy works with university, government and industrial clients from offices around the world.
For updates on innovations from Oxford, follow Isis on LinkedIn and Twitter or subscribe at:
www.isis-innovation.com
About Parkwalk Advisors
Specialising in University spin-out companies, Parkwalk invests in innovative UK high-growth companies across various stages of their development: from growth, development and commercial capital through to acquisition finance. Investments range from early stage to AIM-listed. Parkwalk’s EIS Funds seek significant capital gains with the substantial benefits offered under the Enterprise Investment Scheme.
For updates from Parkwalk, please follow us on Twitter
For further details please contact the Parkwalk funds team on 020 7759 2285.
