FAQs

INVESTING


1. WHAT IS DEEPBRIDGE SYNDICATE?

Deepbridge Syndicate is an online capital raising platform for experienced investors (with Elective Professional Client status) enabling them to self-select and manage their investments in innovative Life Science companies, alongside experienced and hands-on investment managers, Deepbridge Capital via their Life Sciences EIS fund. 

Deepbridge Syndicate is a marketing style of Deepbridge Capital LLP, which is authorised and regulated by the Financial Conduct Authority.  


2. WHAT IS LIFE SCIENCE AND WHY INVEST IN LIFE SCIENCES COMPANIES

Life Sciences companies, simply put, are any businesses focussing on improving and innovating the Healthcare sector. This can include medical devices, diagnostic tools, drug development, therapies, and R&D.  Innovation in this sector is developing at a rate never seen before, especially in light of our aging population and the increasing pressure on healthcare systems, providing considerable opportunities to fund revenue generating companies seeking commercialisation investment.    

Investing in Healthcare is different. It often takes in-depth knowledge of the sector to fully understand the proposition and therefore many opportunities are not as accessible as they should be for individual investors - Deepbridge Syndicate aims to open up these opportunities, using the considerable sector knowledge of our Advisory Committee to source the companies and manage the investment. 

Healthcare can be a close-to-home need or a global need, we aim to support the companies which are improving both healthcare systems across the world and healthcare for our future generations. 

Find out more about the potential of investing in Life Sciences.


3. IS THERE A MINIMUM INVESTMENT?

The minimum investment on Deepbridge Syndicate is £10,000 per company.  If you would prefer to invest across a selection of our companies, please do get in touch at enquiries@deepbridgesyndicate.com.


4. WHO CAN INVEST THROUGH DEEPBRIDGE SYNDICATE?

Deepbridge Syndicate is open to experienced investors and High Net Worth Individuals who qualify and choose to be treated as an Elective Professional Client (EPC), as defined by the Financial Conduct Authority.  For further information about EPC status please click here.

The Life Science EIS is targeting UK tax-paying indivduals:

  • Seeking an attractive, medium term investment opportunity
  • With income tax liability in the current or prior tax years
  • With large capital gains to defer
  • Who will benefit from IHT relief

Investors should note that their investment comprises of shares in small unquoted companies (often with high risk) and that they are unlikely to have access to their capital for at least 3-4 years from the date of application. Please refer to the risk section for further information.


5. ARE THERE ANY FEES FOR INVESTORS?

No.  

There are no management charges levied on the investor, resulting in 100% allocation of the subscription. This ensures maximum tax efficiency for investors.

Deepbridge fees charged to Investee Companies and on exit: 

Initial Fee: 5%
Annual Maintenance Fee: 2%
Performance fee: an incentive fee of 20% of cash returned to the investor, in excess of 120% of the funds invested is payable to Deepbridge on exit.

For further information on fees, please visit FEES.


6. HOW DO YOU DETERMINE THE COMPANY'S VALUATION?

All companies featured on Deepbridge Syndicate have gone through extensive due diligence and valuation by investment managers Deepbridge Capital.

Deepbridge Capital have a highly experienced Investment Committee which vet and assesses all companies so that investors can be confident of realistic company valuations and be reassured by Deepbridge’s proactive ongoing management of the investee companies.

Deepbridge adopts a policy of valuing the investments of the Deepbridge EIS at fair value. Deepbridge endeavours to adhere to the International Private Equity and Venture Capital Valuation Guidelines that were developed by the Association Française des Investisseurs en Capital (AFIC), the British Venture Capital Association (BVCA) and the European Private Equity and Venture Capital Association (EVCA).


7. WHAT IS THE DEEPBRIDGE SYNDICATE MODEL?

Deepbridge Syndicate follows the well-respected “Lead Investor” style model, i.e. an experienced investor/professional investor has confirmed investment in the company, in our case Deepbridge Life Sciences EIS, before releasing the opportunity to further investors. Experienced investment gives confidence and reassurance to subsequent angel investment. 

The added benefit of our Lead Investor model is that all investee companies have gone through extensive due diligence by an experienced Investment Manager, Deepbridge Capital, who negotiate the company valuation and take an active position on the board to guide the company through the next stage of growth. 

Many of our portfolio companies will receive investment from multiple sources, Deepbridge Syndicate endeavours to have full transparency on where investment has come from.

To find out more about the model and Deepbridge Capital please click here.


8. DOES THE "LEAD INVESTOR" HAVE MORE RIGHTS THAN ME?

You will have the same beneficial rights as Deepbridge Capital EIS, i.e. the same share price, same right to exit, but the legal and voting rights are assigned to Deepbridge Capital as the Investment Manager.  Deepbridge Capital endeavours to act in the best of interests of all shareholders at all times. 


9. WILL I GET A POSITION ON THE BOARD AFTER INVESTING?

No, a specialist Deepbridge Capital representative will take a position on the board and will endeavour to work with investors best interests at all times. Investors who invest over £25,000 in an individual company will be invited to join a Strategic Committee which will meet twice a year and in special circumstance to discuss the progress of the company and share thoughts on future strategies. 


10. HOW DO I INVEST?

We aim to make investing as simple and as secure, as possible, whilst ensuring you understand the risks involved in early stage investing. To find out the short steps you have to take please visit How do I invest?


11. HOW DO I MONITOR MY INVESTMENT PORTFOLIO?

Once you have invested in a company, your online ‘My Investments’ profile will give you access to monitor the progress of the raise, updates from the investee company, Q&As etc.   Once the minimum investment has been reached and your investment has been collected, Deepbridge will send 6 monthly updates, invitations to events and other relevant updates for the lifetime of the investment.  Of course, we are always available on the phone or by email if you have any questions!


12. WHAT IS A ‘NOMINEE’?

Deepbridge Syndicate works as a nominee structure – this is designed to cut out the legwork for you as the investor, whilst still receiving all the economic benefits.  

Under the nominee structure, the Investment Manager Deepbridge Capital will act on your behalf to get all the necessary paperwork such as collecting EIS3 certificates, whilst also updating you regularly with company financials and informing you of events to attend. We streamline the communication between you, the investee company and any intermediaries needed to facilitate the investment. 

Importantly, Deepbridge as Investment Manager holds the legal rights (voting and pre-emption) and works to protect these rights for you as the investor, at all times. 

Deepbridge does not hold client funds and therefore your investment and shares are held by Charles Stanley & Co Limited who will act as Custodian and Nominee, acting on the instruction of Deepbridge Capital.


13. WHAT IS A ‘LIVE’, ‘OPEN’, ‘PREVIEW’ DEAL?

On Deepbridge Syndicate there are 3 Deal types:

1. A ‘Live’ Deal – is actively fundraising as part of a time-controlled campaign, investors can pledge their investment until that date, or the maximum investment is reached.

2. An ‘Open’ deal – is not engaged in a time-sensitive fundraising campaign. It is for companies who have already received some investment but will consider more investment. Investors can invest until the maximum investment is reached or the company chooses to close the round.

3. A ‘Preview’ deal – is a preview of a fundraise opportunity that will be launching soon. It will not have full documentation until going Live. You can register an interest in the campaign, and you can also make a pledge, but you are unlikely to be able to see enough documentation at this stage to make a well-informed decision.


14. WHAT ARE EIS TAX RELIEFS?

All companies featuring on Deepbridge Syndicate are EIS eligible, the Government inventive scheme to encourage investment in early stage/growth companies.   

Potential Tax Reliefs  

  • 30% income tax relief
  • CGT deferral
  • IHT relief after 2 years
  • Tax free gains
  • Loss relief available
  • No Remittance Charge For Non-Domiciled UK Residents Bringing Funds Onshore For Investment Via Business Investment Relief.

To find out more on the tax reliefs available please visit Guide to EIS.

In special circumstances we will run non-EIS eligible investment opportunities, the same amount of due diligence will be undertaken and it will be made clear that it is not an EIS opportunity.  More often than not it will be a company Deepbridge has previously invested in but who have filled their EIS quota. 


15. CAN I AMEND/CANCEL MY INVESTMENT?

Yes, after you have pledged, you can amend your investment within your online ‘My Investments’ profile.  Once we have reached minimum investment, we will confirm your pledge – you can cancel your pledge within 14days thereafter.   


16. CAN I MEET THE INVESTEE COMPANIES?

Yes, we will run Meet the Company events across the UK, to give you the chance to meet the team behind the idea and find out more about the opportunity. Once you have registered, we will regularly update you on details of the next events. 

Raising Investment



If you are a life science company looking to raise funding and would like to feature on Deepbridge Syndicate, please email enquiries@deepbridgesyndicate.com with a brief introduction to your company.