LBA raises circa 2m in its two new co-investment funds
LBA recently closed its two FCA regulated funds that have collectively raised circa £2m for deployment in the next 12-18 months.
The first being its HMRC approved LBA Ventures Scale-up EIS 1, an EIS innovation fund that is looking to invest in circa 7 high growth “scale-up” companies over the coming 12 months. The second being the LBA Ventures SEIS/EIS 1, an SEIS/EIS hybrid fund that will invest in earlier stage deals and potentially provide investors with a blended initial income tax break of around 40%. The closing of these two funds illustrates a significant step forward for LBA, with the size of its in house funds tripling in the last year, reiterating LBA’s established position in the UK’s early stage equity market.
Since 2010, LBA has facilitated 7 EIS and an SEIS fund that have collectively invested in circa 40 companies across a variety of sectors. LBA’s portfolio of companies collectively hold over 250 patents and a third have grown their annual revenues by over 50%. LBA’s funds have predominantly invested into deep technology businesses such as; Blu Wireless Technology, which is revolutionising the 5G industry, and Sphere Fluidics, which is applying single cell analyse to accelerate drug discovery. These businesses demonstrate significant hidden value with 24% receiving strategic corporate investments.
The LBA Ventures Scale-up EIS 1 will seek to invest in “scale-up” companies, in post seed to pre-series A rounds, where companies are at the intersection between technical and commercial risk, and require capital to scale-up their commercial operations.
The LBA Ventures SEIS/EIS 1 will be investing in seed and early stage companies providing capital to accelerate commercial progress and grow these companies to their value inflection point.
Alongside LBA’s successful fund closures, LBA remains very active, having closed 28 angel funded deals in 2016. In total circa £33m has been raised by these companies, including £5m of capital from LBA and its Associates. LBA investor participation has been facilitated by its three core initiatives; Angels in the City, Angels in Medcity and its recently launched UK Space Tech Angels. The latter being in collaboration with the £50m Seraphim Space Fund.
Angels in Medcity last month showcased 7 exciting Medtech and Life science companies to over 150 investors at the world renowned The Francis Crick Institute.
Antony Clarke, LBA Managing Director, comments, “The successful closing of our two latest LBA funds, which have raised circa £2m, has confirmed our established position in the early stage equity market and demonstrates the significant growth of our fund management arm. These funds provide LBA with the robust foundation to continue to Fund new angel syndicated investments in 2017/18. The recently announced integration of LBA into The Newable Group also provides further significant growth opportunities for our angel members and Funds.”