Seed Mentors has launched a fund designed to help ex-service men and women build businesses after their return to civilian life.
Using the tax-efficient Seed Enterprise Investment Scheme (SEIS) vehicle, the Start-ups for Heroes fund will primarily back companies set up by a former member of the armed forces.
The Start-ups for Heroes fund will also look to support businesses which offer a product or service of direct benefit to armed forces staff. Other start-ups will be able to seek investment by employing a former member of the armed services throughout the three-year SEIS qualifying period.
Investors in a SEIS fund receive 50% income tax relief up to £100,000. After three years, SEIS shares are also exempt from capital gains tax on disposal, and inheritance tax exemption comes after two years.
Its initial close date is 5 April 2014, unless fully subscribed or extended.
The minimum subscription to the fund is £5,000; the maximum amount an investor can invest in an SEIS in a single year is £100,000.
The Fund will be managed by Amersham Investment Management Limited, which assists in the structure, establishment and operation of fund investment schemes, along with undertaking their subsequent investment management and operation.
Seed Mentors founder and managing director Harvey Shulman said: “The armed forces have long been a training ground for future captains of business. The discipline, determination – and guts – that ex-armed forces personnel have in abundance are also the qualities one needs to see a start-up business through to success.
"These are serious people with serious business plans who have a lot to offer investors.”
