First gambling-specific SEIS launches

10 March 2015

Various figures from the gambling sector have joined forces with UK alterative investment fund manager Innvotec to launch a Seed Enterprise Investment Scheme (SEIS) for the industry.

The GamCrowd 2015 SEIS Fund, which is now open to investors, is a joint venture between Innvotec and gambling crowdfunding and crowdsourcing platform GamCrowd.

Under the arrangement, the GamCrowd will advise Innvotec on the Fund by evaluating all start-ups against strict growth criteria, as well as assisting through the pre-funding process.

The Fund has already attracted commitment of at least £5,000 (€6,996/$7,521) from applicable parties, which include high net worth individuals and sophisticated investors.

Minimum subscription for the Fund is £250,000, with management hoping to raise up to £1.5 million to invest into UK-based start-ups and early stage companies that will operate in the gambling industry.

Fund management also noted that the new system has been set to help those that understand and have interest in gambling but do not have sufficient knowledge or time to invest directly in the young companies targeted.

“The gambling industry has a history of creating scalable, high growth companies which are highly cash generative and not capital intensive,” GamCrowd chief executive officer Chris North said.

“However, the sector is often avoided and under-invested in by traditional institutions.  GamCrowd and Innvotec is a powerful combination and it is this opportunity which the Fund seeks to harness.”

John Marsden, chief executive officer of Innvotec, added: “GamCrowd’s collective knowledge of the gambling business is second-to-none.

“It can help secure maximum value for our fund’s investors by rigorously investigating all opportunities and ensuring that the highest standards are met.”

Related article: GamCrowd expands platform with Incubator launch