Strategy

The role of Professional Advisor is a difficult one at best. The bewildering array of SEIS and EIS offerings in the market today and the various wording used to describe them, makes choosing product even more difficult.

At VN-CP we try to cut through all the ‘market noise’ by originating clear, concise, practical, legislation driven, professional third party referenced, renewable technology project opportunities, that make sense to the investor and IFA alike.

We currently can provide you with bespoke materials, video explanations, research documentation, technical information, specific project management team access and direct investor presentations, either by group or on a one-to-one basis, on or off-site.

As for managing the projects, we are completely focused on delivering the maximum amount of value for every £1 invested in each project. It seems obvious, but when considering the time, effort and money to secure investor funds, the key focus for any management team should be on keeping costs to a minimum by getting as much out of each supplier engagement as it can, therefore adding maximum value at each and every stage of project development. Unfortunately for investors the majority of projects on offer do not subscribe to this school of thought.

By way of practical explanation for example, all VN-CP originated SEIS & EIS SPV’s DO NOT have the following individual overheads to consider:

  • Office/premises costs
  • Management salaries
  • Fund management fees
  • Ongoing business OPEX.

Rather, there is a single £5k pa – per SPV, charge levied by VN Capital Partners for full administration and management services provision, including annual returns, VAT reporting and full year end accounts. This means that each and every VN-CP originated project has a significant commercial edge over most start-up companies that it competes with in the market. Often, the single reason for early stage companies failing is escalating OPEX costs in the form of salaries, management fees, professional fees, leases and other commercial service expenses.

How can we provide this service at that price?

Its quite simple, we arbitrage equity for services. For example, we provide our accountants, Simmons Gainsford (SG LLP) with a small equity stake in each and every project created. In return, SG LLP provide us with full access to all in-house professional services, including their offices in Chandos Street where we are able to manage company administration and hold investor meetings/presentations onsite. All key project management team members/directors are also incentivised with an equity stake in the individual project SPV they have responsibility for, and finally the VN-CP directors also hold an equity stake in the project. Thus we all trade expertise and management for equity, to the cash benefit of the project.

Pre-revenue all professional project management team members/directors use their own company or consultancy for personal income, whilst guaranteeing the SPV a agreed number of hours or input in return for their equity position.

Why is this important?

The team at VN-CP believe that as much of the investors money as possible should go into delivering projects and value for shareholders thus providing the SPV with the best possible chance of success, not be  paid away as fees for fund management or salaries for management teams. We also believe that all project management teams should completely aligned to investors, i.e. their success is determined by the nature and size of the exit.

Conclusion

Given the multitude of promises, guaranteed return claims and various assurances given in the SEIS & EIS product market today, VN-CP originated projects offer transparent, straightforward and cost effective renewable opportunities that provide potentially significant returns to investors, with none of the usual market noise or significant percentage uptake of any upside if/when the opportunity is successful.