Braveheart Inv Regulatory News (BRH)

27 January 2014

Braveheart Investment Group plc

('Braveheart', the 'Company' or the 'Group')

Braveheart enters into partnership with Crowdcube to launch new-style

co-investment fund

Braveheart Investment Group plc, the AIM-listed investment management group providing debt and equity financing to SMEs and servicing the investment requirements of business angels, high net worth individuals, family offices, and public sector organisations, is pleased to announce a partnership with Crowdcube Ventures Limited ('Crowdcube'), and the establishment of the Crowdcube Venture Fund (the 'Fund').

The Fund, which is believed to be the first of its kind, will enable passive investors to build a portfolio of investments by co-investing in crowd-funded ventures which have been carefully screened by a professional fund manager. The two firms will work together, with Crowdcube sourcing investments and Strathtay Ventures Ltd ('Strathtay' or the 'Manager'), a wholly owned subsidiary of Braveheart, carrying out the fund management role. 

The Fund will seek to take advantage of EIS and SEIS tax reliefs. The minimum subscription by an investor into the Fund is £2,500. Investors will be accepted into the Fund on a case-by-case basis and can subscribe, or top up, on more than one occasion over the two-year initial investment period. Strathtay will seek to build balanced portfolios for investors, with potential returns coming from portfolio companies by way of prospective trade sales, IPOs and licensing and revenue deals.

In order to qualify for investment from the Fund a company must raise at least 33% of its required total through the Crowdcube platform. Crowdcube, founded in 2010, has seen recent exponential growth and currently has over 57,000 registered investors. During 2013, Crowdcube raised £12.2million for 54 UK businesses, a 500% rise on 2012. 

Geoffrey Thomson, Chief Executive of Braveheart, said: "We are excited to link up with Crowdcube and establish this new approach to investing. There are a large number of investors who like the crowdfunding concept but who, for one reason or another, find the DIY route problematic. We hope they will find this new initiative of interest."

Darren Westlake, Chief Executive and co-founder of Crowdcube, said: "It makes sense for us to partner with Braveheart which is an established, quoted fund manager with a strong track record. Many investors are attracted to the idea of crowdfunding but lack the time to fully research opportunities and monitor the progress of a diversified portfolio. This Fund offers them a tailored solution."

Further information:

Braveheart Investment Group plc

Geoffrey Thomson, Chief Executive Tel: +44 1738 587555

gthomson@braveheartgroup.co.uk

Crowdcube Limited

Luke Lang, Co-founder/Director Tel: +44 1392 241319

luke@crowdcube.com

Sanlam Securities UK Limited (Nominated Advisor and Broker to Braveheart)

Lindsay Mair Tel: +44 20 7628 2200

Catherine Miles

Media Enquiries (Braveheart):

Allerton Communications

Peter Curtain Tel: +44 20 3137 2500

peter.curtain@allertoncomms.co.uk

Media Enquiries (Crowdcube):

Eureka Communications

Teresa Horscroft Tel: +44 1420 564346

teresa@eurekacomms.co.uk

Notes to Editors

Braveheart Investment Group plc

Braveheart provides financing and associated advisory services for small and medium sized enterprises (SMEs) as follows:

For the company looking to raise money, we provide:

· Equity Capital. This form of financing is typically long term and is usually appropriate for fast growing business or early stage companies. We will consider equity financings where our individual investment, or the investment we arrange, would normally be a maximum or £2m although we are happy to participate in larger financings as part of a syndicate;

· Debt Finance. Short to medium term and for companies with cash flow to service the loan. Our unit size for this type of finance is up to £1m and we will usually provide junior debt which is unsecured but linked to an equity instrument;

The money we invest comes from a variety of sources (see below) and is sometimes linked to particular geographical locations.

To the investor, we provide a one-stop shop service to those in one of the following groups who are looking for exposure to SME investments:

· High Net Worth (HNW) individuals looking to build tax efficient Enterprise Investment Scheme (EIS) and Seed EIS portfolios;

· Family offices and private sector institutions;

· The Public Sector.

Investors can choose between investment types ranging from self-build portfolios, to a full fund management service.

Crowdcube Ventures Limited

As the world's first equity crowdfunding platform, Crowdcube enables everyday investors to fund British businesses in return for a share in the company. Since February 2011, more than 57,000 savvy investors have registered with Crowdcube, helping to raise more than £17m for 90 UK businesses. The ground breaking model lets entrepreneurs showcase their investment opportunity online and bypass the traditional business angel, venture capital or bank route, giving them more control and access to more investors.

Investing in start-ups and early stage businesses involves risks, including liquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Crowdcube is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. Crowdcube is authorised and regulated by the Financial Conduct Authority (No. 572026).