The British Robotics Scale-Up Fund is gearing up to accelerate the growth of ten high-potential businesses focused on developing productivity-boosting technologies, particularly in robotics, artificial intelligence (AI), and automation.
The fund will utilize the tax-advantaged Enterprise Investment Scheme (EIS) to mitigate risks for investors backing these young, high-potential enterprises. It aims to build diversified portfolios across various sectors, further reducing risks for investors. Specifically, the fund will target “Knowledge Intensive” companies, allowing for larger investments for longer durations compared to traditional EIS-qualifying firms. This strategy benefits investors by enabling greater investments under EIS and promoting rapid value growth during the scale-up phase.
Over the past eight years, the British Robotics funds have invested in 40 companies, supporting entrepreneurs in creating technologies that enhance productivity, especially in robotics, AI, and automation. The new fund will continue this focus and capitalize on global trends such as labor shortages, the shift away from fossil fuels, supply chain inefficiencies, and the depletion of natural resources.
Investors will have the opportunity to subscribe between £10,000 and £2,000,000 to the fund each year, with the requirement that all investments go to “Knowledge Intensive” EIS-qualifying companies. This allows investors to offset at least 30% of their investment against their tax bill and potentially enjoy other tax benefits.
Prominent British companies experiencing rapid growth, such as Chemastery, RAD Propulsion, Altered Carbon, Zelim, and BladeBUG, are expected to benefit from the fund’s deployment.
Dominic Keen, Managing Partner of Britbots, emphasized the growing importance of robotics, AI, and automation in addressing global productivity challenges and skilled labor shortages. Boyd Carson of Sapphire Capital Partners highlighted the unique investment opportunity provided by the British Robotics Scale-Up Fund.
