Deepbridge has launched a seed enterprise investment scheme (SEIS) to invest in innovative companies.
SEIS investments carry a 50 per cent up front tax relief.
The companies invested in must be early stage to the extent of having assets of less than £200,000 and must have less than 25 employees.
Any gains made on the investments are exempt from capital gains tax, income tax and inheritance tax.
The Deepbridge Innovation SEIS will seek to invest in companies that are using innovative methods to “meet the requirements and demands” of corporate and consumer markets.
Sectors of focus will include technology, energy, medical technology and diagnostics, data analytics, transport, robotics, machine learning and artificial intelligence.
Deepbridge will work with partners including the National Science and Innovation Campus, Sci-Tech Daresbury, and digital development experts, We Are Nova.
Ian Warwick, managing partner at Deepbridge, said: “The Innovation SEIS will generally invest in companies possessing significant intellectual property, requiring relatively modest capital at the outset with the express intention of delivering either a product designed to prove concept, a prototype, or a minimum viable product.
"It is also the express intention of Deepbridge to also consider further funding of the selected investee companies under the EIS, where those companies meet the specific investment criteria of a relevant Deepbridge EIS proposition."
Patrick Connolly, head of communications at advice firm Chase De Vere, said: “It is important to fund innovative activities and it is exactly these types of initiatives which should benefit from the attractive tax benefits offered by SEIS.
"However, while the tax benefits are very generous, these investments are very high risk and so won’t be suitable for the overwhelming majority of clients.”
david.thorpe@ft.com
