To launch on 11 August, Mercia Digital Fund combines the structure of an Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), with investors expected to realise their portfolios in between three and seven years.
Minimum investment is £25,000, while the fund offers initial tax relief of either 30% or 50%, loss relief and zero CGT on returns once qualifying shares have been held for three years.
Mercia’s relationships within the technology sector include long-term tie ups with eight universities.
Key themes within the fund will include fintech (financial technology) in which global investment has more than trebled during the past five years; ‘the internet of things’ – focused on the interconnection go everyday devices; e-commerce and gaming.
Mark Payton, managing director of Mercia Fund Management, called digital the UK’s fastest-growing sector and the third-biggest contributor to the nation’s economy.
“The sector boasts three times higher employment growth than the wider economy, with 25% greater revenue growth than traditional firms, and a Gross Value Added (GVA) per employee of £83,000, the output within digital is nearly twice the UK average for all sectors,” he said.
“The UK is undoubtedly among the world leaders in key digital industries such as fintech, e-commerce and the fast evolving gaming categories.”
