Equity firms Britbots and Sapphire Capital have announced that they are setting up a fund for British startups across the areas of robotics, artificial intelligence and automation, named the British Robotics Scale-up Fund.
The pair hope to use the fund to advance progress in key areas and address global challenges relating to labour shortages, especially in skilled jobs, the transition into more sustainable practices, supply chain crises and the depletion of natural resources.
The majority of the investments made via the British Robotics funds so far have made use of the tax-advantageous Seed Enterprise Investment Scheme (SEIS), the benefits of which include up to 30% income tax relief, tax-free investment growth, capital gains deferral and more.
These accompanying benefits, the two companies claim, mitigate some of the risks to investors for backing young businesses.
The British Robotics Scale-Up Fund is a successor to the prior British Robotics SEIS funds, which include the British Robotics Seed Fund (one and two) and the British Robotics Sidecar Fund.
Investors will be able to contribute between £10,000 and £300,000 to the fund per year, with a minimum of 60% of the investment going to SEIS-qualifying companies and whatever remains funding opportunities that qualify for the Enterprise Investment Scheme (EIS).
As a result of this, each investor can offset at least 42% of the amount they invest against their tax bill, Britbots and Sapphire Capital have said.