Dear ,

Salunda was established to exploit sensor technology from the University of Oxford, and is currently based at headquarters near Bicester, UK. The company’s sensor technology for use in harsh environments is protected by a portfolio of 23 patents.

Salunda’s technology discriminates between materials by measuring certain electromagnetic characteristics.  The technology is used to monitor the condition of high value machinery (e.g. pumps, rig equipment), or to analyse the composition of fluids (e.g. drilling waste).

Commercialisation

Salunda entered the market for oilfield services and equipment after an initial fund raising round in July 2013. Since then it has taken orders from multiple, leading operators and service companies. The company’s initial product monitors safety critical rig equipment used during drilling and production. Initial orders have already been taken from the market leading manufacturer of rig equipment, and deliveries are scheduled to commence mid-2015.  A second product monitoring fluids and waste is expected to reach the market during 2016.

Investment Case

Salunda is at an exciting time in the development of the company with the growing acceptance and use of its technology in the Oil and Gas Industry. Perhaps more mature than some investments in the fund it has a proven technology and is beginning to sell product and so the technology has been significantly derisked. Product sales are forecast to start to ramp up in 2015. We believe the technology can eventually be used across other industries.

We are investing alongside existing investors who are supporting a business plan which should not be capital intensive. The eventual exit route is likely to be through a trade sale once sales have begun to ramp up in 2017 and beyond.

Management

Chris Harris, Chairman, is also CEO at YASA Motors & Light Blue Optics. He has been President of Plasmon Inc. and has a DPhil from the University of Oxford.

Alan Finlay, CEO, was the co-founder and CEO Microsaic Systems plc for over ten years including IPO exit. He worked at Agile Software Corp. (acquired by Oracle). Alan has an M.Eng.Sc. (Mech.) from University College, Dublin, Ireland.

David Richardson, Finance Director, is a Chartered management accountant & treasurer (ACMA, AMCT). David is also fnance director at Exosect Ltdand has been VP Finance at Evotec (UK) ltd for more than ten years.David was also a finance & IT manager at Astra Zeneca plc.

Prof. John Gregg, Academic founder, is a Professor of Physics at Magdalen College, University of Oxford.

The University of Oxford Isis Fund II is expected to open to new investors at the end of this month. We will be hosting a small launch event from 6.00pm to 8.00pm on the evening of Thursday the 27th November in Mayfair  - please contact the team here if you would like to join us or have further information on the Fund.

Valuations as of 10th November 2014. Net NAV includes tax relief and is stated after the deduction of fees. For details of the basis on which fees are charged to the funds, see the Funds' prospectuses.

* Fund I: September 2014: £0.86 returned to investors in cash for every £1.00 invested (at a cost of £0.83 including fees and charges) with the second exit from Fund I

** Fund II: June 2014: £1.43 returned to investors in cash (CGT free) for every £1.00 invested (at a cost of £0.73 including fees and charges) with the first exit from Fund II

Parkwalk’s current portfolio consists of over 30 companies, which have raised in excess of £250m of funding between them since 2010 and over 600 patents protect their technology and processes.
Overall, Funds I-IV’s portfolio comprises of 10% Series ‘A’, 42% Series ‘B’, 21% Pre-IPO and 27% AIM listed companies. The University of Cambridge Enterprise Funds and University of Oxford Isis Funds generally comprise earlier stage investee companies.  

Past performance is no guide to future performance. Projections and forecasts are also not a reliable indicator of future performance. The price of a fund can fall as well as rise. Investors may receive back less than originally invested.

This financial promotion is issued by Parkwalk Advisors Limited (Parkwalk), which is authorised and regulated by the Financial Conduct Authority.  Investments referred to in this newsletter are not suitable for all investors.  Interested parties are strongly recommended to seek specialist financial and tax advice before investing in any Parkwalk product.  Capital is at risk and investors may not get back the full amount invested. Tax treatment depends on the individual circumstances of each investor and may be subject to change. Past performance is not a reliable indicator of future results, and the value of investments may go down as well as up. Projections and forecasts are also not a reliable indicator of future performance. Investments in small and unquoted companies carry a higher risk than many other forms of investment. Any investment in a Parkwalk product must only be made on the basis of the terms of the full Information Memorandum. Parkwalk is not able to provide advice as to the suitability of investing in a Parkwalk product.