Alpha RLC Ventures Fund€¦ · Alpha RLC Ventures Fund Pitch Deck 15 Key Risks An investment in the Fund is subject to a number of risks given the nature of the private companies

Alpha RLC Ventures

Fund

RiskWarningIntended for distr ibution to persons who are el ig ib le to be classi f ied as professional c l ient as per COBS 3.5

(https://ww w.handbook.fca .org.uk/handbook/COBS/ 3/5.html) ; p lease consult a professional advisor i f you are in any doubt . RLC Ventures

LTD. is an appointed representat ive of SFC Capita l Partners Ltd (the ‘pr incipa l f irm’) which is author ised and regulated in the UK by the

F inancia l Conduct Author i ty (“FCA”) , F irm Reference Number 736284, and has approved th is document . RLC Ventures LTD. Is located at

Level 5, Berkeley Square House, Berkeley Square, London, W1J 7BY. Th is document is intended for UK professional investors only, not reta i l

customers; any reproduct ion of th is information, in whole or part , i s prohib i ted . Th is summary document is provided for information

purposes only and should not be used or considered as an offer or so l ic i tat ion to purchase any investments mentioned herein . Tax

treatments of S/EIS schemes depend upon indiv idual c i rcumstances , are subject to change and depend on the companies in which the

fund investments mainta in ing their qual i fy ing status (which is subject to change and may be withdrawn at any t ime by HMRC). Prospect ive

investors should seek professional advice to determine the tax posit ion in their speci f ic c i rcumstances . The Alpha Venture Fund (“RLC Fund”

or the “Fund”) i s an Alternat ive Investment Fund ( ‘A IF ’ ) for the purposes of the Alternat ive Investm ent Fund Managers Direct ive (“AI FMD”) .

I ts i s not an Unregulated Col lect ive Inve stment Scheme with in the meaning of sect ion 235 of FSMA nor a Non-Mainstream Pooled

Investment .

Any decision by an investor to buy shares in a fund must be made solely on the basis of the information and terms contained with in the Fund’s offering

memorandum. Investment in the Fund is made entirely at the investor’s own risk and professional advice should be sought in case of doubt. The Alpha RLC

Ventures Fund is an SEIS/EIS fund which raises money for early-stage businesses by investing in SEIS and EIS eligible ventures with the aim of returning a

profit for investors in the fund. Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution.

Investment in SEIS/EIS funds should be considered as part of a diversified portfolio. The availability of tax relief depends on individual circumstances and may

change in the future. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. There is no assurance that

the investment objectives of any investment product wi l l be achieved or that the strategies and methods described herein will be successful. Past

performance is not necessarily a guide to future performance and the value of an investment may go down as well as up in addition to placing capital

at risk. Investors may not get back the full amount invested. This material is confidential and is the property of RLC Ventures Ltd. Recipients are

deemed to have agreed to treat the information contained herein as confidential and therefore may not disclose, copy, or redistribute such

information (in whole or in part) to any person. No warranties or representations of any kind are expressed or implied herein.

https://www.handbook.fca.org.uk/handbook/COBS/3/5.html

Alpha RLC Ventures Fund Pitch Deck 3

Contents

4 Fund Overview

5 Portfolio Track Record

6 Current Investments

7 Portfolio Breakdown

8 RLC Ventures Fund USPs

9 Media Coverage / Portfolio Companies

10 Investment Strategy

12 Fund Details

13 Our Core Team

14 Advisory Team

15 Key Risks

17 Contact Details


Alpha RLC Ventures Fund Overview

Co-investment with experts

Invest alongside experienced angel investors.

Tax efficient

All portfolio companies will be SEIS and EIS eligible.

Unique Deal-flow – 1500 application

RLC Ventures benefits from a unique deal-flow by reviewing 1,500

opportunities every year.

Diversification

The RLC Fund will invest in a diverse portfolio of companies operating across various sectors e.g. Fintech, Proptech, Consumer Goods, AI, Life Science & Digital Technology.

High potential companies

The RLC Ventures Fund will invest in a portfolio of 6-10 companies showing high growth potential.

Post-Investment Support

RLC Ventures provides portfolio companies with an ecosystem of support services directly or via a large number of partners.

Key Fund Facts

The Alpha RLC Ventures Fund (the ‘RLC Fund’) is a fund designed for Angel and Sophisticated Investors, with entrepreneurship at its core. The fund may only accept investors who may be opted up to professional client status i.e. they must have the requisite knowledge/experience and understand the risks, as per COBS 3.5.3R (https://www.handbook.fca.org.uk/handbook/COBS/3/5.html).


Portfolio Track Record

Combined implied

equity multiplier*

10x

Top Performing

Investment*

24xLandlordinvest

on last funding round in 2 years

Past performance is not a guarantee of future performance and the returns quoted or implied here may not be replicated in future.*based on last funding round

13 companies invested

since inception*

1500 applications

per year <1% selected


Recent Investments

LandlordInvest

P2P property lending platform

WriskInsurance app

For Good Causes

Fintech business that converts unused

loyalty points into cash for charities

Betting Metrics

Sports betting platform for bet

tracking and analysis

Carl Capital

Property investment firm with a

technology focus

Weddingplanner.co.uk

Online wedding marketplace

Fusion Festival

Is an annual music festival business

Visixtwo

Emoji campaigns business

Savran

People performance improvement

business

We Who Do

Freelance recruitment platform

Wintern

Work experience platform for students

Grohappy

B2B SaaS platform that helps companies

to better engage & retain talent

Work for Good

Platform for the good of both charities and

business


Portfolio

Diversification*

20%Fintech

10%Proptech

10%Insurance

Tech

10%Media & Lifestyle

20%Tech for Good

10%Gaming

20%Education /

Employee Tech

RLC Ventures Current Portfolio Breakdown

*RLC Ventures LTD., as at April 2018

Founder focused

From Fintech to Gaming“Sector Agnostic”


Proprietary ResearchRLC Ventures conducts in-house proprietary research. RLC Ventures then uses this research to compose its investment thesis into emerging trends and sectors.

Founder AI SelectionRLC Ventures meticulously selects founders through our in-house AI model, which evaluates 500 traits of a founder.

Early Stage Focused on seed and pre-seed opportunities

Deal Flow RLC Ventures has created a smooth source funnel for constant deal flow - 1500 applications a year

Experienced Team Experienced management team and diverse advisory board with 50 years + of experience.

Track RecordRLC Ventures strives to an average 2.5x return. See track record slide.

Hands On We take an active role in our investments

Unique Partnership RLC Ventures have built unique partnerships within the startup ecosystem e.g. Mayor of London (L&P)

Co-investmentParticipation in the fund will give investors an opportunity to co-invest into emerging sectors, alongside RLC Ventures – who will invest their own capital into every deal

Alpha RLC Ventures Fund USPs


Media Coverage RLC Ventures / Portfolio Companies


Investment Strategy I

Seed Stage Early stage businesses which are deemed to have a pioneering business model.

Team A founding team of 2 or more individuals that have the technical and business acumen to build a high growth business.

InnovationA business where the product or business model is technology-enabled and is truly innovative.

MVPThe business need to be able to further develop their Minimum Viable Product (MVP).

Market Size The size of the market must be considerable.

Barrier to Entry High barriers to entry e.g. through technology or government regulation.

Backing Youth

ScalabilityThe idea must be able to rapidly scale and, have the ability to reach a significant valuation within 5 years. The idea must have High growth potential –10X+ on investments.

Route to ExitCompanies should have a clear path to exit via IPO or trade sale.

We focus on investing in millennial founders. Our thesis is clear. Overlooking young first time founders is naïve in our modern economy. 80% of the worlds top 500 tech companies were started by 25-30 year old's e.g. Facebook, Airbnb.


Investment Strategy II

Seed Early Stage Growth Later Stage Exit

£0 – 100k £100k – 1m £1-5m £5m – 50m £50m +

Self - funded

Family & Friends

Loans

Crowdfunding

Accelerators

Incubators

RLC Ventures

Angels

Angel Groups

Early Stage Venture Capital

Venture Capital Series A/B/C

Trade Sale

AIM

Private Equity

Stock Market


Fund Details

SEIS/EIS Eligible* £ 10,000 n /a** Up to 18 months

Minimum InvestmentFund Type Maximum Investment Investment Deployment Period

* Subject to individual circumstances. The RLC Fund is also open to investors who do not wish to claim any tax relief on their investments.

** There is no maximum although an individual’s total annual SEIS allowance under income tax and CGT relief is limited to £100,000 and in the case of EIS it is £1m.

InvestorFees 0% Initial Fee 1.25% AUM charge per year 20% Performance fee on profits

Co-Investment and Follow-on

Opportunities

Target Return (2.5x+) Additional access to our deal

flow


Our Core Team

Reece ChowdhryFounder

• Ex EY Management Consultant – Chartered Management Account (ACMA / CGMA)

• Mentor to Mayor of London Business Growth Program

• Board Advisor to Landlordinvest, PLS Solicitor, For Good Cause & Betting Metrics

• Youngest investor ever to be profiled by The Sunday Times

Alex Petri Investment Analyst

• Engineer / PMP

• Experienced Project Management Professional across different industries including Construction & Real Estate, Energy and Technology

• MBA at Cass Business School

Katie HinksmanHead of Marketing

• Ex Jelly Bean Creative Solutions

Jay JungOperations Analyst

• BSc Philosophy and Economics (LSE)

• Jay conducts due diligence and assists portfolio companies in a technical capacity when required.


Advisory Team50 years of experience From Google to The Telegraph

Jack Sidhu Investment Council

• Senior Vice President, Brookfield Asset Management

• Former Manager, Capital Markets Group – Deloitte

Joe VallanderTech Advisor

• Co-Founder & CTO Landlordinvest

• Head of Technology Sift Media

Michael Tobin OBEGrowth Advisor

• Serial technology entrepreneur & pioneer with over 30 years’ experience in the telecoms & technology sector.

Amir Tayebi Corporate Finance Advisor

• Advisers for Adam Street

Anila DhamiMedia Advisor

• The Telegraph / ITV Journalist

Ravi NayerLegal Advisor

• Senior Associate Pinsent Mason

• Fellow at Oxford University

Kristy Barr Institutional Sales Advisor

• RF Capital

• Ex BMO Institutional Client Sales

Mike James Strategic Advisor

• Founder Who We Do

• Ex EY Strategy Consulting


Key RisksAn investment in the Fund is subject to a number of risks given the nature of the private companies targeted. Before making any investment decision, prospective Investors should consider carefully the risks attaching to an investment in the Fund. All other information contained in this document, including, in particular, the risk factors described below.

Investment Risk

The Fund will primarily invest in either identified start-ups or known early stageopportunities. This focus increases both the risks and the potential rewards for Investors.Potential Investors are recommended to seek independent financial and tax advice beforecommitting. Please note that an investment in the Fund is speculative and the FundManager is unable to provide you with advice about whether you should commit to theFund.

• The RLC Fund Portfolio will comprise investments in unquoted companies that are start-up or small, early stage businesses or similar, and unlikely to be profitable or cashgenerative at the time of investment and, as such, have to be viewed as carrying ahigher than average level of risk. The market for their shares is illiquid and uncertain byits nature. This results in a higher level of risk than a portfolio of quoted shares.

• Investments in SEIS and EIS Qualifying Companies are not publicly traded which maymean that immaculate/proper information will not be available to determine thecurrent investment value. Investing in such products need to be thought carefullywhether you can afford this investment or not and if this kind of investment is the bestits kind – external consultation may be advisable. You should be prepared to exit theinvestment intact for significantly longer than three/five years.

• The value of shares can go down as well as up and this could result in an Investorincurring a partial or total loss of his or her Commitment. A potential Investor thatcannot afford to lose all of his or her Commitment to the Fund should not considercommitting.

• There is no guarantee that the valuation of shares in a Portfolio Company will fullyreflect their underlying net asset value or that the shares may be acquired or disposed ofat that valuation, or at all.

• The past performance of any investment(s) is not to be regarded as an indication ofthe future performance of that or any investments made by the Fund and capital is atrisk. No guarantee is given as to the performance of investments made by the Fund orthe level of capital gains or income that will be generated by such investments. Therecan be no guarantee that the commercial objectives of the underlying PortfolioCompanies will be achieved.

• The unquoted companies targeted by the Fund will have small management teamsand are highly dependent on the skill and commitment of a small number ofindividuals.

• Smaller unquoted companies requiring more than one round of additional equity ofthe type provided by the Fund commonly experience significant change and carryhigher risks than investments in larger or more established businesses.

• Technology or scientific research related risks may be greater in small, unquotedcompanies, although this may be justified by the potential for significantly higherreturns from such investments.

• The Fund may be the holder of minority interests in Portfolio Companies andaccordingly may have little or no ability to influence how the business of thatcompany is conducted. This may also include sale of a Portfolio Company within thethree year holding period if the financial gain is deemed attractive, and, althoughconsidered unlikely, a revocation of SEIS or EIS status or adverse shareholder rightsbeing imposed by a later investor.


Key Risks

Taxation Risk

• Rates of tax, tax benefits and allowances described in this Information Memorandumare based on current legislation and HM Revenue & Customs practice. These maychange from time to time and are not guaranteed. This investment may not besuitable for all investors. RLC Ventures does not provide advice and potentialinvestors are recommended to seek specialist independent tax and financial advicebefore investing. The Fund has been designed with UK-resident taxpayers in mind. Ifyou are not resident or ordinarily resident in the UK for tax purposes, it may not beappropriate or advantageous for you to invest in this fund.

• It is the intention of the Fund Manager to make investments in identified unquotedcompanies that are qualifying under current SEIS or EIS legislation at the time ofinvestment. However, the Fund Manager cannot guarantee that all Investments willcontinue to qualify for any SEIS or EIS Tax Relief or indeed the continued availabilityof SEIS or EIS Tax Reliefs to the investor relating to any individual Investment.

• The sale or other disposal of shares in a Portfolio Company within the period of threeyears following their issue will result in any income tax saved from making of theInvestment becoming payable to HM Revenue & Customs.

• The levels and bases of reliefs from taxation may change or such reliefs may bewithdrawn. The tax reliefs referred to in this document are those currently availableand their value depends on the individual circumstances of investors initially andthroughout the holding life of the Investments.

• The dates on which initial SEIS and EIS Tax Relief and Capital Gains Tax ReinvestmentRelief are available are known only when the Fund makes its underlying investments.Any delays in investment into the Fund’s Qualifying Companies may have a “knockon” effect on the opportunity to defer capital gains tax on an earlier disposal.

• The ability of the investor to obtain the tax reliefs referred to in this document issubject to the investor making the proper claims to HM Revenue & Customs withinthe requisite time limits and the investor may lose such reliefs if the relevant claim isnot so made.

• The Fund Manager will not normally take into account the individual tax positions ofinvestors and therefore the actions of the Fund Manager or Portfolio Companiescould give rise to a partial loss of the Investor’s SEIS or EIS Tax Relief or other taxadvantages.

• An investor should be aware that SEIS or EIS Tax Relief and Capital Gains TaxReinvestment Relief is only available on the amount actually invested on his or herbehalf in Qualifying Companies, not on the total amount of his or her Commitment tothe Fund.


Level 5

Berkeley Square House, Berkeley Square,Mayfair,W1J 8BY

RLC Ventures

twitter.com/rlcventures

linkedin.com/company-beta/11202490/

+44 7753 480 692

[email protected]

www.rlc.ventures

SFC Capital PartnersLimited 1-6 Speedy PlaceCromer Street London WC1H 8BU

If any further information related to the Fund is required please contact the Fund Manager.

Fund Manager

Documents

Alpha RLC Ventures Fund€¦ · Alpha RLC Ventures Fund Pitch Deck 15 Key Risks An investment in the Fund is subject to a number of risks given the nature of the private companies