Gambling crowd-funding site GamCrowd has partnered with Innvotec Limited, a Financial Conduct Authority (FCA)-authorized fund management firm, to launch the first Seed Enterprise Investment Scheme (SEIS) dedicated to the gambling industry.
The GamCrowd 2015 SEIS Fund opens for investors today—a day before the start of Cheltenham Festival, where hundreds of millions of pounds is wagered.
GamCrowd has already begun assessing companies, judging the relevant regulatory and licensing requirements. Once the qualified companies are selected, GamCrowd will advise Innvotec on GamCrowd 2015 SEIS investments, evaluating the potential of all start-ups against strict growth criteria and assisting through the pre-funding process, prior to helping the companies to deliver the objectives agreed at the time of investment.
“SEIS is one of the most advantageous tax schemes available to investors anywhere in Western Europe,” said GamCrowd CEO Chris North. “Because of the UK government’s generosity and enthusiasm to funnel tax payers’ money towards UK start-ups, many specialist funds have been started. But, until now, none has existed in gambling, despite it being a huge industry.
“The gambling industry has a history of creating scalable, high growth companies which are highly cash generative and not capital intensive. However, the sector is often avoided and under-invested in by traditional institutions. GamCrowd and Innvotec is a powerful combination and it is this opportunity which the Fund seeks to harness,” added North.
“GamCrowd’s collective knowledge of the gambling business is second-to-none. It can help secure maximum value for our Fund’s investors by rigorously investigating all opportunities and ensuring that the highest standards are met,” said Innvotec CEO John Marsden.
SEIS was launched by the UK government in 2012, designed to help small, early-stage companies raise equity finance by offering substantial tax relief to individual investors who purchase new shares in those companies.