South East Seed Fund FAQs
How is the fund managed?
The Fund is a separate legal entity managed by South East Fund Managers Limited, an FSA-authorised fund management company which is a subsidiary of Finance South East. The fund managers are individually approved to make and manage investments of the type envisaged by the Fund.
What is the Seed Fund’s investment horizon?
The Fund is structured as a ten-year investment fund. In order to ensure a sufficient turnover of investments to make the fund sustainable and to provide a return for investors there needs to be a clear exit route for each investment ideally within three to five years. Ventures with long development periods or which require time-consuming regulatory approvals before commencing income generation will not be suitable for investment by the Fund for this reason.
What is the size of the fund and who are its investors?
The Fund has been launched with over £4.5 million of investment from a group of South East universities under their "CommercialiSE" programme and SEEDA, the regional development agency. Additional investment has been provided by ProLogis Developments Limited, the UK subsidiary of a quoted US property development company.
Further investment is sought to increase the overall size of the Fund. To enquire about investing in the Fund itself, please email Sally Goodsell, Chief Executive, or telephone 01276 608527.
What is the process to obtain investment?
Stage one: preparation prior to application
The Fund will accept applications direct from companies or through independent advisers. It is recommended that companies seek qualified advice to ensure that business plans are "investment ready" as competition for investment will be strong. Good preparation prior to seeking investment should mean that the application has a higher chance of being taken forward and that the due diligence process should be simpler and quicker. Any company linked to a University partner or Enterprise Hub must first seek the assistance of the Technology Transfer Officer or Hub Director to ensure that the business plan is investment-ready and that the opportunity meets the Fund’s investment criteria. Suitable support programmes run by the Innovation and Growth Teams or CommercialiSE universities should be considered at this stage in order to ensure that the company has the best chance of attracting investment. A full written endorsement of why the company should be considered for the Fund from the relevant Technology Transfer Office or Enterprise Hub is desirable to support the application. Any enquiries prior to making an application should be made to Bradley Jones or Alexis Weber at Finance South East, preferably by telephone on 01276 608526 or by introductory email. Applications to the Fund should be made using the application form in our How to Apply section.
Stage two: assessment
A fund manager will make an initial assessment based on the information provided in the application form within a week. If appropriate, the company will be invited to submit an up-to-date business plan and, in due course, to attend a meeting. This is likely to be followed by further meetings and due diligence, typically covering commercial, technical, financial, managerial and deal structuring matters. The costs of due diligence will usually be met within the arrangement fee.
Stage three: investment approval
A written investment proposal setting out the principal details of the investment proposition will be put to the Investment Committee. The investment committee comprises individuals who are suitably qualified and experienced in venture capital and includes members who are independent from the investors in the Fund and the fund manager.
Stage four: deal completion
If the investment is approved by the Investment Committee, a Term Sheet setting out key investment terms will be signed between parties. The fund manager will then instruct lawyers to prepare the legal documentation and will arrange completion of the transaction and the advance of capital.
How long will the investment process take?
The timing of the assessment and due diligence process is heavily dependent on the degree of preparation by the company, the complexity of the proposal and the clarity and availability of the information prepared by the company. Straightforward investments should take about four weeks to complete once approved by the Investment Committee.
