MabLyte and Watertronix are both being backed by Mercia Fund Management after securing the maximum £150,000 that is available through the seed enterprise investment scheme (SEIS).
The deals are being made through Mercia Growth Fund 1 which, according to the venture capital fund manager, is the first hybrid fund offering enterprise investment scheme (EIS) and SEIS opportunities.
New portfolio company Watertronix has developed a method for treating swimming pool water which eliminates chlorine whilst keeping pool water clean and safe. The business has installed the first new system in an international hotel chain pool in the UK and will now use the £150,000 it has netted to roll out its technology to public pools in the UK and Europe.
Fellow new investment MabLyte was set up by serial entrepreneur Geoff Hale, the founder and ex-CEO of BioAnalab, and Alice Harrison. The company operates in the life sciences industry and produces a range of kits for the analysis of the biological activity of monoclonal antibodies and related drugs.
Mark Payton, managing director at Mercia Fund Management, comments, ‘We have a strong track record in identifying and nurturing early-stage companies through rapid growth to profitability and we are delighted to reveal our first SEIS investments.
‘Our partnership with Forward Group and growing funds under management mean that we are actively looking to work with more SEIS companies, especially as banks fail to lend money to fund new businesses.’
More on Mercia Fund Management:
Mercia Fund Management raised £2 million for its Mercia Growth Funds 1 and 2 (both hybrid EIS and SEIS funds) and says that it has six further SEIS investments ‘rapidly progressing’ towards investment completion.
Companies eligible to raise money through SEIS must be less than two years old, have fewer than 25 employees, have gross assets less than £200,000 and must not have already raised capital through EIS or venture capital trusts (VCT).
Individuals making commitments to SEIS funds receive 50 per cent income tax relief, capital gains tax loss for tans made in 2012/13 and invested in 2013/14, tax-free capital gain and capital loss relief.