The investment maxim is to buy at the sound of the cannon, and sell when the violins at the post-battle ball begin to play. It’ difficult to think of a noisier cannon sound than the all-pervasive pandemic, the likelihood of a brutally hard Brexit, and a nasty winter.
So let’s see the news of technology investment specialist Draper Esprit’s “accelerated investment strategy to capture a greater share of technology investment opportunities” as good news in difficult times.
Announced yesterday, Draper Esprit sought to raise around £100 million in a share placement. The placement was oversubscribed with gross proceeds standing at £110 million.
Martin Davis, CEO Draper Esprit, commented on the additional funding:
“We have been closely watching the development of our portfolio companies and the market as a whole as the post COVID-19 world emerges, and have been greatly encouraged by the increased pace of change driven by greater adoption of technology and an increased priority on digitisation. This enables us to play a central role in helping entrepreneurs invent the future, and this funding round will play a key role in us delivering on that vision. We are delighted also to be welcoming new investors both from the UK and Europe onto our share register as part of this fundraising, as well as receiving strong support for the transaction from our existing shareholders.”
As a publicly listed venture company, Draper Esprit has invested in multiple high profile Fintechs including N26, Revolut, Seedrs and Crowdcube. The advent of COVID has fueled digital transformation as social distancing and mandated lockdowns have compelled firms to operate remotely and consumers to quickly adapt lifestyles to life during a pandemic.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.
Historical Performance And IFISA Process Guide
That figure is the result of over £20 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2019/20 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.