*

* Diagnostics company in stealth mode

Oxford Technology Combined SEIS and EIS Fund - OT(S)EIS Quarterly Report to 30th June 2016

Summary By 30 June 2016, OT(S)EIS had completed 46 investments in 23 companies. Details of all the investments and how they are doing are given below. Things are going well, even very well, and the overall figures are as follows: Gross amount invested by OT(S)EIS: Net cost of these investments after tax reliefs (1): Fair value (2): Tax free gain (on paper only so far):

£2.74m £1.55m £4.77m £3.22m

1. Assuming only income tax relief for a 40% taxpayer. The net cost will be even less for investors in the fund who also have capital gains tax to pay. 2. Valuations are all done by valuing the shares held by OT(S)EIS at the most recent price paid by investors in the company. If, following an investment, things have gone wrong, then the valuation is reduced. But if things have gone well, the valuation is not increased. To this extent the valuations are conservative. For example, by December 2015, it was clear that Combat Medical was making excellent progress with its improved treatment for bladder cancer. But the valuation of this investment was not increased until investment was received in March 2016 at a higher share price. Obviously nothing really counts until there are exits. In a sense, the share price achieved at exit is the only one that matters apart from the original purchase price of the shares. And exits are typically expected in a 5 -10 year timescale. But the most recent share price paid is a fair guide to a true valuation. Another table which illustrates the beneficial effect of making SEIS & EIS investments is the following: Number of companies invested in since 2012: Total invested: No of failures to date (there will likely be more): Losses on these after tax reliefs: Fair value of remaining investments:

23 £2.74m 2 £.033m (just £33,000) £4.77m

Poïesis On 4 April, we invested £100,000 in a new company Poïesis, and this featured in the quarterly report which we sent out on 6 April. However, before spending any of the money and before actually issuing the shares, the founders of Poïesis decided that it would be better for them to start the business in the US (the founder is a US citizen). This made the business ineligible for SEIS. So they simply returned the cash and the investment never proceeded.

SEIS Tax Reliefs Summary -

Income Tax bill reduced by 50% of investment Income Tax bill reduced further if the business fails - up to 22.5% 50% relief against capital gains which is not merely deferred but cancelled. No tax on Capital Gains from investments No inheritance tax on shares after 2 years Tax reliefs can be claimed as if the investment had been made in the previous financial year, if the investor wishes

EIS Tax Reliefs Summary - Income Tax bill reduced by 30% of investment - Income Tax bill reduced further if the business fails - up to 31.5% - The payment of tax on a capital gain can be deferred where the gain is invested in EIS shares. The Capital Gain to be deferred can be made three years before, or one year after the investment. - No tax on Capital Gains from investments - No inheritance tax on shares after 2 years - Tax reliefs can be claimed as if the investment had been made in the previous financial year, if the investor wishes For more in depth details, please consult HMRC, or your financial advisor.

Example SEIS investment An individual investor with income tax of £25,000 to pay and capital gains of £100,000 in the 2016/2017 tax year on which tax of £20,000 at the 20% rate is due to be paid invests £10,000 in an SEIS qualifying company in 2016/2017. Investment: Income tax bill reduced by 50% of this: Capital Gains tax bill reduced by: Net cost of investment:

£10,000 -£5,000 -£1,000 £4,000

For higher and additional rate taxpayers, capital gains tax was 28% in 2015/2016 then changed to 20% in 2016/2017. If the above investor also had income tax of £25,000 and capital gains of £100,000 in the 2015/2016 tax year on which tax of £28,000 at the 28% rate had been due then they could choose whether to treat their 2016/2017 investment as having been made in 2015/2016 and claim relief in that year. This would result in a reduction in capital gains tax of £1,400 and therefore a net cost of investment of £3,600. Should the investee company fail, the remaining part of the investment on which income tax relief has not been claimed (£50,000 in this example), may be set against the investor's income tax liability. For a 45% tax payer, this relief is worth £2,250 For a 40% tax payer, this relief is worth £2,000 For a 20% tax payer, this relief is worth £1,000 So for a 45% taxpayer with capital gains tax to pay, the total loss on the investment of £10,000 would be reduced to £1,750 if the investment was made in 2016/2017 and not carried back to the previous year. If the investments succeeds, and the shares are sold for £20,000 (so twice the purchase price) the £20,000 would be tax free, a multiple of more than 5 times the net cost.

OT(S)EIS Fund Portfolio as at 30th June 2016 Company Run3D

BioMoti

Combat Medical

Message Missile

Ibexis Technologies

Amount Invested

Date

SEIS/EIS

Net Cost

Fair Value

Multiple*

£100,000

18/12/2012

SEIS

£50,000

£100,000

2.00

£15,000

18/10/2013

SEIS

£7,500

£15,000

2.00

£10,000

18/10/2013

Non SEIS/EIS

£10,000

£10,000

1.00

Improved Cancer Drugs

£75,000

08/01/2013

SEIS

£37,500

£37,500

1.00

£40,000

28/05/2014

EIS

£28,000

£23,200

0.83

Bladder cancer treatment

£75,000

05/04/2013

SEIS

£37,500

£245,300

6.54

£75,000

05/12/2013

EIS

£52,500

£223,000

4.25

£10,000

29/10/2014

EIS

£7,000

£28,300

4.05

£34,300

05/12/2014

EIS

£24,000

£97,100

4.05

£75,000

10/03/2016

EIS

£52,500

£75,000

1.43

Mobile App enhancement (geo-location notifications)

£16,000

23/05/2013

SEIS

£8,000

£3,200

0.40

£5,000

18/10/2013

SEIS

£2,500

£1,000

0.40

£20,000

19/06/2014

SEIS

£10,000

£4,000

0.40

Remote datalogging

£50,000

24/05/2013

EIS

£35,000

£14,000

0.40

Business 3D gait analysis for physiotherapy

Method of Valuation Latest Share Price

Discounted by 50%

Latest Share Price

Discounted to £0

Discounted to £0

*Note: Multiple = Fair Value/Net Cost, where Net Cost takes into account only the tax relief against income tax and Fair Value includes loss relief where applicable (and assumes a 40% taxpayer) For those investors who also have capital gains tax to pay, there are further CGT reliefs (SEIS) or CGT deferrals (EIS) available.

Company Lightpoint Medical

Business Real-time imaging for cancer surgery

Amount Invested

Date

SEIS/EIS

Net Cost

Fair Value

Multiple*

£75,000

04/06/2013

SEIS

£37,500

£802,000

21.39

£75,000

10/03/2014

EIS

£52,500

£199,500

3.80

£10,000

07/11/2014

EIS

£7,000

£21,400

3.05

£125,000

04/12/2014

EIS

£87,500

£267,100

3.05

£100,000

10/03/2016

EIS

£70,000

£100,000

1.43

£20,000

24/03/2016

EIS

£14,000

£20,000

1.43

Method of Valuation Latest Share Price

Metal Powder & Process

High quality metal powder production

£150,000

16/08/2013

SEIS

£75,000

£150,000

2.00

Latest Share Price

Power OLEDs

Improved OLED technology

£75,000

11/12/2013

SEIS

£37,500

£75,000

2.00

£25,000

18/07/2014

EIS

£17,500

£25,000

1.43

Latest Share Price

£30,000

27/04/2015

EIS

£21,000

£30,000

1.43

£30,000

04/09/2015

EIS

£21,000

£30,000

1.43

Abgentis

Improved antibiotics

£42,200

27/03/2014

SEIS

£21,100

£42,200

2.00

Latest Share Price

Designer Carbon Materials

Endohedral fullerene production

£75,000

03/04/2014

SEIS

£37,500

£75,000

2.00

Latest Share Price

*Note: Multiple = Fair Value/Net Cost, where Net Cost takes into account only the tax relief against income tax and Fair Value includes loss relief where applicable (and assumes a 40% taxpayer) For those investors who also have capital gains tax to pay, there are further CGT reliefs (SEIS) or CGT deferrals (EIS) available.

Company Sasets

Business Software for construction industry

Diagnostics Company in stealth mode Sime Rapid diagnostic to

Amount Invested

Date

SEIS/EIS

Net Cost

Fair Value

Multiple*

£75,000

30/07/2014

SEIS

£37,500

£175,000

4.67

£75,000

22/01/2016

EIS

£52,500

£75,000

1.43

£75,000

04/09/2014

SEIS

£37,500

£75,000

2.00

£100,000

07/04/2016

EIS

£70,000

£100,000

1.43

Method of Valuation Latest Share Price

Latest Share Price

Diagnostics

protect pre-term baby lungs

Expend (formerly Curoo)

Software to reduce paperwork for expenses

£75,000

23/12/2014

SEIS

£37,500

£650,600

17.35

Latest Share Price

Molecular Warehouse

Proteins for diagnostics and therapeutics

£75,000

21/04/2015

SEIS

£37,500

£100,000

2.67

£75,000

02/02/2016

EIS

£52,500

£75,000

1.43

Latest Share Price

£20,000

24/03/2016

EIS

£14,000

£20,000

1.43

Animal Dynamics

Mechanical engineering inspired by animal motion

£75,000

29/06/2015

SEIS

£37,500

£75,000

2.00

Latest Share Price

Ducentis Biotherapeutics

Immune modulation therapeutics

£50,000

13/07/2015

SEIS

£25,000

£64,300

2.57

£30,000

14/12/2015

SEIS

£15,000

£30,000

2.00

Latest Share Price

Bioarchitech

Engineered oncolytic virus

£79,600

13/08/2015

SEIS

£39,800

£132,600

3.33

£40,000

08/03/2016

SEIS

£20,000

£40,000

2.00

Latest Share Price

*Note: Multiple = Fair Value/Net Cost, where Net Cost takes into account only the tax relief against income tax and Fair Value includes loss relief where applicable (and assumes a 40% taxpayer) For those investors who also have capital gains tax to pay, there are further CGT reliefs (SEIS) or CGT deferrals (EIS) available.

Company

Business

Amount Invested

Date

SEIS/EIS

Net Cost

Fair Value

Multiple*

Method of Valuation

Orbit Discovery

Peptide drug development

£100,000

27/11/2015

SEIS

£50,000

£100,000

2.00

Latest Share Price

Curileum Discovery

Intestinal tract therapies

£75,000

07/03/2016

SEIS

£37,500

£75,000

2.00

£25,900

19/05/2016

SEIS

£13,000

£25,900

2.00

Latest Share Price

TMC Applications

Online financial Interface

£37,500

01/04/2016

SEIS

£18,800

£37,500

2.00

Latest Share Price

Active Needle Technology

Ultrasound visible needles

£50,000

05/04/2016

SEIS

£25,000

£50,000

2.00

Latest Share Price

Oxford Nanoimaging

Super-resolution microscopes

£100,000

29/04/2016

SEIS

£50,000

£100,000

2.00

Latest Share Price

Eva Diagnostics

Portable blood analyser

£75,000

19/05/2016

SEIS

£37,500

£75,000

2.00

Latest Share Price

*Note: Multiple = Fair Value/Net Cost, where Net Cost takes into account only the tax relief against income tax and Fair Value includes loss relief where applicable (and assumes a 40% taxpayer) For those investors who also have capital gains tax to pay, there are further CGT reliefs (SEIS) or CGT deferrals (EIS) available.

Run3D Investments made by Fund Date

Amount

18/12/2012 18/10/2013 18/10/2013

£100,000 £15,000 £10,000

Share Price £0.15 £0.15 £0.15

Type SEIS SEIS Non SEIS/EIS

www.run3d.co.uk

Fund Shareholding 36.76%

Description of Business Run3D is the brainchild of Dr Jessica Leitch, 30, who is an International runner herself (representing Wales) and who has a first class degree in Engineering from Oxford and also a D.Phil from Oxford in the biomechanics of running. Runners have reflective balls attached to their various joints (hips, knees, ankles) and also at various other points on their legs and then run on a treadmill. Special cameras capture the image of the balls at 200 frames/sec and this data is then fed into a computer programme, originally developed by an academic in Canada and to which Run3D has exclusive UK rights for an initial period of three years. The computer then outputs a complete gait analysis, giving every detail of the gait, the angle of heel-strike, the rotation and rate of rotation of each joint, etc. etc. The gait of the individual is also compared to a database of 3,000+ runners. The operator, often a physiotherapist, is then able to indicate: - Where the runner’s gait is furthest removed from the norm - Where, if uncorrected, future injuries are likely to arise. - How the runner should aim to modify their gait to avoid future injuries. - What particular exercises should be undertaken to strengthen particular muscles in order to reduce the likelihood of future injury. There are now 2m people who run every week in the UK and the statistics show that 1m of these will develop running related injuries in the course of the next 12 months. Progress Initial progress was quite good. The company opened its own Run3D centre in Oxford, later moved to the new Bosworth Clinic in Cassington, near Oxford and also opened five franchisees. However, it became clear that there were many opportunities to improve the software and that these improvements were not going to be forthcoming from Canada. So an agreement was reached with a company in Amsterdam, a specialist in this area, that they would implement Jessica's suggested improvements in a new software suite in exchange for a 20% share of the company. The revenue from the existing franchisees meant that the business was approximately at breakeven and it was decided that no new franchises would be opened until the new software was ready. Indeed, two of the franchisees dropped out, (for reasons other than the quality of the software) so there are currently three franchisees. Recent Developments The new software is now being trialed at Cassington and everyone is very excited. It represents a big step forward on many fronts. In particular the new software displays results in real time and will enable gait retraining. So runners can be guided on how to modify improve their gait while they are running. They can then return to make sure they have properly learned their improved gait. There is now a small list of would-be new franchisees, all waiting for the new software to be ready. The plan is to use the new software in Cassington during July and, all being well, to install it with the existing franchisees in August and then to bring on new franchisees from the autumn. There are no geographical limitations on the new software so Run3D aims to appoint distributors/dealers in other territories. Running is a global phenomenon. Run 3D has benefitted from a grant from Innovate UK which has helped to fund the developments.

BioMoti Investments made by Fund Date

Amount

08/01/2013 28/05/2014

£75,000 £40,000

Share Price £0.05 £0.05

Type SEIS EIS

www.biomoti.com

Fund Shareholding 13.92%

Description of Business BioMoti is based on technology from Queen Mary University of London. Its founders are Dr. Davidson Ateh and Prof. Jo Martin who was appointed as Head of Pathology for the NHS in early 2013. The chairman is Keith Powell who has long experience in early stage biotechnology companies. Tumour cells including those from ovarian, breast, pancreatic colon, prostate and bladder cancer overexpress a particular ligand, CD95L on their surfaces. CD95L helps tumours to avoid the immune system by killing off certain classes of immune cells and is also associated with triggering cancer metastasis. The scientists have discovered that if a small particle is coated with CD95R (which binds to CD95L), the cancer cell will engulf the particle and draw it inside. By loading a chemotherapeutic drug into a biodegradable particle coated with the receptor molecule, it is possible to deliver high concentrations of chemotherapy drug into the cancer cells. The first product uses paclitaxel to target ovarian cancer in a much more efficacious and less toxic manner with the potential to extend use to further cancers such as hard to treat breast cancers. BioMoti’s technology, called Oncojan™, can dramatically increase the efficacy of standard clinical treatments whilst reducing side-effects in healthy tissues. This is no longer an idea. Preclinical tests have shown remarkably good results, with 65-fold reductions in tumour burden, doubling of median survival and significant decreases in toxicity seen in an ovarian cancer model when the technology is applied and compared with the current clinical standard-of-care. Biomoti also discovered that CD95L is overexpressed in tumor vasculature and it is therefore possible to accurately target tumors systemically. Recent Developments BioMoti has signed a non-binding Heads of Terms with Physiomics PLC. BioMoti are waiting for Physiomics to raise money to support the interaction. Negotiations are also proceeding with the international pharma company. Summary The first strategy for the company (to do internal lab development work supported by grants) has not been successful in the short-term and the company has cut its cost base in order to prolong its life and allow more time for business development. The discovery that the target molecule is widely present on blood vessels in tumours along with a role in immuno-oncology opens up a new set of opportunities for further cancer indications. A non-binding offer to acquire the company has been accepted and we will see over the next 3 months how that unfolds.

Combat Medical Investments made by Fund Date 05/04/2013 05/12/2013 29/10/2014 05/12/2014 10/03/2016

Amount £75,000 £75,000 £10,000 £34,250 £75,000

Share Price £4.31 £4.74 £4.98 £4.98 £14.1

Type SEIS EIS EIS EIS EIS

www.combat-medical.com

Fund Shareholding 3.57%

Description of Business Combat Medical develops and manufactures devices for the treatment of bladder cancers. Its device consists of a control unit and a disposable heat exchanger and catheter. These are used to deliver a treatment consisting of heating a chemotherapy liquid and circulating this through the bladder, rather than cutting out tumours in the bladder which is the current treatment. The standard treatment for bladder cancer results in up to 78% recurrence of tumours which then require increasingly drastic surgery. Combat’s treatment, called HIVEC (hyperthermic intra-vesical chemotherapy), reduces recurrence rates by up to 4 times. Thus far it has been used in combination with surgery, but it is also being investigated as a standalone treatment. It is also much less expensive, since the repeated surgery required to treat bladder cancer is extremely costly. Combat's devices are already CE marked and may therefore be used by doctors; the company is undertaking additional clinical trials to make it a standard of care. The hope is that the new treatment will in time become the most common treatment both in the UK and globally. If so, then the company will become very profitable and valuable. A video describing the system can be seen at http://www.hivec.co.uk/index.php/en/ Recent Developments Clinical results continue to support the thesis that chemo-hyperthermia is improving outcomes for patients dramatically. The most recent results show a marked decrease in recurrence vs standard of care for high risk tumors. The device is now in use in 90 hospitals and has been used for over 10,000 treatments. 4 hospitals have adopted it as standard of care for certain categories of bladder cancer. At the American Urology Association conference there were 6 presentations by independent US urologists referring to Combat’s BRS system as something that would help move the field forward in the States. There are now 5 approved randomised clinical trials ongoing with a total of 832 patients covering various types/areas of bladder cancer. The 2 largest trials (HIVEC I & II) are sponsored by Combat with a total of 562 patients, so far Combat have recruited over 400 patients into these trials and expect to conclude clinical recruitment in early 2017. A treatment registry, HIVEC E has been established and is proving popular with the clinicians. It now contains details of over 400 patients. The first papers are being published based on the data from the registry and they are showing a marked improvement in outcomes for patients using HIVEC. Combat has entered into an agreement to test a US company’s thermally activated drug for use in bladder cancer. Combat won the Oxford Trust Enterprise award against a large field of competitors. Combat has completed the first portion of a £2m fundraise with ~£1m committed. Combat is looking at the possibility of acquiring a company that provides chemo-hyperthermia for cancers that develop in the abdominal cavity (HIPEC). If that goes ahead it will be raising £5m to support the commercialisation of both products across the world. Summary Combat is doing well, with growing adoption and good clinical outcomes. The team has grown to allow the company to continue its expansion. The full return to the market of BCG is posing a challenge, but clinicians who have used HIVEC a lot appreciate the treatment benefits and the international community is starting to pay a lot of attention to Combat. Combat is raising money.

Message Missile Investments made by Fund Date 23/05/2013 18/10/2013 19/06/2014

Amount £16,000 £5,000 £20,000

Share Price

Type

£0.04 £0.08 £0.01

SEIS SEIS SEIS

www.messagemissile.com www.notifu.co.uk

Fund Shareholding 58.09%

Description of Business Message Missile was a software company founded by Thomas Young, who was 18 at the time of the first investment, and who then went to Lancaster University. There are two elements to the software. Message Missile is used by businesses and enables them to send messages to the mobile phones of their customers based on their location. So a grocery store could send a message to any of its customers who are within 500 yards of the store, saying that they have a special offer on corn on the cob, for the next 60 minutes. NotifU is a free app for use by the public. It opens with a map centered on the user's location and shows offers, which may be listed by type and proximity.

Progress since investment The first version of the software was completed in September 2013, and approved by Apple soon after. However, progress was very slow after this because Thomas Young was in his first year at University and was not able to devote as much time to the business as he had hoped. But Thomas was able to engage more during his second year, and slightly better progress was made.

Current Position The business has now been closed and the company has been struck off the register at Companies House. Investors in the business have been sent a letter which will enable them to obtain loss relief on their investment. The gross amount invested in this company was £41,000 and the final economics of this investment for 40% taxpayers (and assuming no capital gains tax savings) were as follows:

Gross investment Tax relief against income tax Loss relief (40% of £20,500)

£41,000 £20,500 £8,200

Total tax refunds

£28,700

Cash loss on investment

£12,300

For 45% taxpayers and for investors with capital gains tax to pay, the loss will have been even smaller.

Ibexis Technologies Investments made by Fund Date 24/05/2013

Amount £50,000

Share Price £0.01

Type EIS www.ibexis.com

Fund Shareholding 22.52%

Description of Business Ibexis Technologies designs and manufactures self-contained dataloggers which will operate in remote places and record and transmit data back to base either using the local mobile phone network or via a satellite. One of the founders was previously involved in a similar business which was ultimately unsuccessful but which had supplied dataloggers for the following applications: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Monitoring the sale of ice from ice vending machines on garage forecourts in the US Weather stations in Indonesia Monitoring water levels in Norway and Sweden Measuring snowfall and water levels in remote mountain regions in Norway Monitoring rainfall in the US Weather stations in Holland Monitoring temperatures in buildings in the UK Monitoring the second by second power consumption of large telecom infrastructure in Austria. Monitoring levels of fuel in rail depots in the UK Monitoring temperature and salinity in a lake in Greece.

Ibexis dataloggers are small fully-integrated boxes designed to be very power efficient so that they may be powered by a battery or by a small solar panel or windmill in remote locations and may be programmed to send back data from up to 75 different sensors both digital and analogue at whatever interval is required, maybe every few seconds or maybe once per day. As can be seen, the Ibexis dataloggers can be used anywhere in the world in a wide variety of applications. The hope is that the volume and variety of the applications will grow and that Ibexis will become financially successful as this happens. Recent Developments Progress has continued to be very slow and following major disagreements between the founders, it has been decided to close the company down. Summary The company survives but is likely to close and we have written the value of the investment down to £0.

Lightpoint Medical Investments made by Fund Date

Amount

04/06/2013 10/03/2014 07/11/2014 04/12/2014 10/03/2016 24/03/2016

£75,000 £75,000 £10,000 £125,000 £100,000 £20,000

Share Price £0.047 £0.190 £0.238 £0.238 £0.509 £0.509

Type SEIS EIS EIS EIS EIS EIS

www.lightpointmedical.com

Fund Shareholding 9.40%

Description of Business In breast cancer surgery a surgeon cannot see whether the entirety of a tumour has been removed. Roughly one quarter of surgeries for early-stage breast cancer need to be repeated to remove small residues which were missed in the first operation. Lightpoint has developed an imaging technology based on Cherenkov emission which provides to surgeons a real time image of the cancer. The patient is given FDG-18, a common radioactive tracer which is taken up preferentially by tumours, and the surgeon is able to see the tiny amounts of light emitted from the radioactive tissue. The first product is LightPath, a specimen analyser for intra-operative margin assessment, which allows surgeons to determine whether the tissue they have removed has a safe margin around it. The second product is EnLight, a hand-held molecular imaging fibrescope for open surgery. Lightpoint is very actively engaged with surgeons to ensure that the products are ideally suited to their needs. Recent Developments Following the commercial launch there was a lot of interest and Lightpoint is working with selected launch sites.  Clinical interest remains very high and two sales prospects are progressing well, it is now confirmed that Dutch Cancer Society will grant funds to a major Dutch hospital to purchase a LightPath Imaging System. Lightpoint has won a €2.4m grant which will partially fund the pivotal breast cancer study in Europe. The study will start summer 2016. The first CE marked Lightpath machine is now in operation in London. A CLI fibrescope has been shipped to Memorial Sloan Kettering Cancer Centre in New York. The device was funded by the US National Cancer Institute. This will be the first device installation outside of Europe. NHS NIHR featured Lightpoint in a Technology Alert. Download the full report here Summary Lightpoint has continued to deliver good results with technical and commercial development progressing smoothly.  The recent European grant will support the next stage of clinical validation.

Metal Powder & Process Investments made by Fund Date

Amount

16/08/2013

£150,000

Share Price £1.25

Type SEIS

Fund Shareholding 12.00%

Description of Business Metal Powder & Process (MPP) will produce high quality metal powders for the aerospace, medical, and other industries, by gas atomisation. Metal is melted at the top of the atomiser, a machine the size of a small house, poured through a nozzle and blasted by jets of supersonic argon gas, and so turned into dust. The use of powdered metals has been growing steadily over the last 50 years. It is less expensive to produce certain components, e.g. gearwheels used in cars, by metal injection moulding powdered steel, than it is to start with solid steel and then cut each tooth on a machine. Metal injection moulding also produces parts which are more accurate and stronger. Due to the incorporation of some novel technology, it is hoped that the atomiser (known as Bertha) operated by MPP will produce powder of higher purity than the powders produced by existing atomisers. This, in turn, should make the powder suitable for use in the aerospace industry. In the past, the aerospace industry has been reluctant to use powdered metal since the impurities which are present in powders produced by existing designs of atomisers are potential crack-initiation sites. Progress since investment Work on completing and commissioning Bertha has been continuing since the investment. The first sales were achieved in Q1 2015. These were for trial quantities. Recent developments In December 2015 while on a visit OTM witnessed a pour of 120 Kg of a nickel alloy powder being produced. This went perfectly and took approximately 11 minutes (plus several hours for preparation, applying the vacuum, heating and melting the metal, back filling with inert gas and post-pouring cooling). This was very encouraging and bodes well for the future. Now the task is to scale up production and increase orders. Work has continued on the developments required to produce powders for the aerospace industry. Also an order for 5 tons of a particular powder was received after trials proved its value in the production process. This is the largest single order yet received (worth >£150k) and represents a solid step forwards. The hope is that it will be followed by even larger orders. Summary Some progress has been made, but much remains to be done on the organisational/ management front.

Power OLEDs Investments made by Fund Date 11/12/2013 18/07/2014 27/04/2015 04/09/2015

Amount £75,000 £25,000 £30,000 £30,000

Share Price £0.50 £0.50 £0.50 £0.50

Type SEIS EIS EIS EIS

www.poweroleds.co.uk

Fund Shareholding 21.92%

Description of Business Professor PK Kathirgamanathan, based at Brunel University, and known as PK, is one of the world's leading experts on OLEDs (Organic Light Emitting Diodes). The specialist materials that he has developed are already used in a large number of commercial Organic Light Emitting Diode (OLED) applications, most commonly in the screens of mobile phones. He has now established a new company, Power OLED Ltd, the purpose of which is to develop and market new materials which will be used in the next generation of OLEDs. The latest set of materials combines the following beneficial traits: - Higher efficiency - 60% improvement. - Greater stability at higher temperatures - Better matched electronic levels For the end user this will result in brighter, more efficient, longer lasting screens on laptops, tablets and mobile phones. The manufacturer benefits from a reduction in the number of manufacturing steps, an increase in yield, and a consequent reduction in costs. Power OLEDs has achieved comparable efficiency to the current standard using a material that is spin-coated as opposed to deposited by vacuum processing which would reduce processing cost significantly in the long term. It is possible that these improved OLEDs will in future be used as lighting. Such lights would be in the form of flat panels, rather than today's tubes and point source LEDs. The business model will be to license the technology to chemical manufacturers in some markets and develop a manufacturing capability for other markets. Recent Developments Phosphorescent light emitters are more efficient than fluorescent ones and OLED reds and greens are typically phosphorescent. The electronic properties of normal hole transporters do not allow phosphorescent blue emitters to be used. Power OLED’s hole transport material has now been tested with phosphorescent blue emitters and yields a six-fold increase in efficiency. The first versions of the Electron transport layer are being developed and tested. Power OLED has had requests for material to test from 8 of the major manufacturers. We have started delivery of materials in small quantities and production is being scaled up with our production partner in Korea so we can provide 100s of grams of materials. Unfortunately the person who had been doing the purification of the Power OLED materials has left the university and work has come to a halt. The sublimation purification technique is specialized and it will require several months for a new person to be trained up. Work will be resumed once sufficient funding raised to enable new staff to be hired. Funding discussions are progressing – with company now focussing on a raise of £500k, with a discussion regarding a £2.5m investment also progressing. The OLED industry keeps growing and the requirements for higher performance are playing into Power OLED’s hands as their materials have the desired characteristics. Summary The company has delivered the first materials for testing and they have shown big advantages in some areas. A key person has moved from the university and new individuals need to be hired in. This has resulted in a delay which will only be resolved upon new funding. We have made presentations to several larger investors and the outcome of these discussions is being awaited. We will likely invest some more in this round and if you are interested to invest directly into the opportunity please let us know.

Abgentis Investments made by Fund Date

Amount

27/03/2014

£42,000

Share Price £5.80

Type SEIS www.abgentis.com

Fund Shareholding 4.22%

Description of Business Dr Lloyd Czaplewski FRSC is the founder of Abgentis and an experienced entrepreneur as well as an expert in the structure of antibiotics. The rise of anti-biotic resistance has put pressure on pharmaceutical companies to acquire new products. Abgentis will deploy Lloyd's unique insight into the structure-activity relationships, microbiology, pharmacology and efficacy of antibacterial DNA supercoiling inhibitors to rapidly re-engineer and optimise a compound that was effective in the market but was not competitive due to resistance and side-effects. The programme of work is designed to improve the potency and resistance frequency and to minimise the side effects in order to create an internationally competitive product. The aim is to develop the new product to the point where it can be acquired. This will require testing microbiology and pharmacokinetics as well as toxicology of a number of variants. Recent Developments Abgentis has now narrowed development down to one compound, which is being prepared in different salt compositions in preparation for the next rounds of in-vitro testing. Summary Abgentis continues to make progress towards the goal of developing antibiotics which are less likely to allow antibiotic resistance to develop in bacteria. The development work carried out to date should result in new and valuable IP. The specialists who are carrying out the development work are quite confident that a solution may be found to the technical difficulties which have been encountered. SEIS note The 70% level has now been reached and the application for SEIS forms is now in progress.

Designer Carbon Materials Investments made by Fund Date

Amount

03/04/2014

£75,000

Share Price £0.75

Type SEIS www.designercarbon.com

Fund Shareholding 16.67%

Description of Business Professor Kyriakos Porfyrakis works in Materials Department of Oxford University. Over the last few years, he has developed a method of producing small quantities of endohedral fullerenes. Carbon exists in many forms, including graphite and diamond. But carbon can also exist as fullerenes, hollow spheres of carbon atoms, the simplest of which is made up of 60 carbon atoms. Kyriakos has developed a method of making fullerenes which contain an atom of another element inside. So far the elements chosen are Gadolinium, Yttrium and Nitrogen. It is believed that these novel materials will have potential uses as a better contrast agent for MRI scans, for improving the efficiency of photovoltaics, and for use in certain quantum computing applications. There had been considerable interest in these novel materials from researchers around the world. Production capacity at the time of investment was about 1 gram per month. The purpose of the investment was to move the business into commercial premises on one of the Oxford Science Parks, to build an improved production machine, and to employ someone to concentrate on sales. This is a classic high risk, high potential reward investment. Progress since investment Production of the materials and research has continued in the lab. An important milestone was achieved in Q3 2014, when DCM received its first order, - £22,000 for 0.2gm of a nitrogen containing fullerene, with a purity of 1 in 1,000, so 200 micrograms of the [email protected] This is a price of more than £100m per gram, so we think this might be the most expensive material on the planet. The first half of this was delivered in Q1 2015. The material will be used in a research project whose aim is to produce an extremely accurate atomic clock on a chip so that it could be used in a mobile phone. This would enable GPS to be accurate to within c. 1mm which would have many potential applications including controlling driverless cars. In December 2015, an article about "Oxford scientist makes most expensive material on planet." appeared in the Daily Telegraph and was widely taken up around the world, which led to some potentially useful enquiries including from the Chemistry department in Yale. The production process results in a mixture of compounds, among which are the desired endohedral fullerenes, which then have to be separated from the mix. The company is continuing to seek ways both to increase the rate of production and of improving the efficiency of the separation/purification steps. Work also continues on the production of other endohedral fullerenes for other potential applications. One possible application is a photovoltaic sun-roof panel for a major car manufacturer. Recent Developments During the last quarter, the company took delivery of some new equipment which, it is hoped, will result in an improved rate of production. At the time of writing this new equipment is being commissioned. There have been no new orders, but a number of enquiries have been received and quotations prepared.

Sasets Investments made by Fund Date 30/07/2014 22/01/2016

Amount £75,000 £75,000

Share Price £0.12 £0.28

Type SEIS EIS

www.sasets.com

Fund Shareholding 8.16%

Description of Business Sasets provides software for construction companies which enables them to replace paper forms with forms on mobile devices. The forms may have information such as the weather entered automatically and may incorporate geotagged photographs, a great advantage in many situations. The net result is a jump in efficiency and a big time saving. The forms are transmitted instantly to the department where they are needed, a huge improvement on the old methods of sending forms in triplicate by post to departments which then had to reenter the data. Progress since investment As so often, things went more slowly than hoped and new issues emerged when the product began to be used in the field. But technical development continued and by Dec 2015, there were 95 users in three companies, and support calls had diminished almost to nothing (a very good sign.) By the end of March this had increased to 133 users in 4 companies. Users pay a monthly subscription to use the software. So now the plan is more marketing to more customers. In January 2016 OT(S)EIS invested a further £75,000 to help fund increased marketing. Sasets is to appear on the crowdfunding platform Syndicate Room in June and July, seeking to raise up to £75,000 to further increase marketing expenditure. Summary After a slower-than-hoped-for start, the Sasets software is working well. Support calls have diminished to a trickle and the number of customers and the number of users is increasing. The aim now is to increase marketing and to increase the rate of growth. Paying users Aug 2015 22 Dec 2015 102 Mar 2016 133 Jun 2016 183

Corporate Customers 2 3 4 11

Sime Diagnostics

Diagnostics Company in stealth mode Investments made by Fund Date

Amount

04/09/2014 07/04/2016

£75,000 £100,000

Share Price £2.11 n/a

Type SEIS EIS

www.simediagnostics.co.uk

Fund Shareholding 3.85%

Description of Business Sime Diagnostics makes use of mathematical techniques to extract the greatest possible information from spectrometric readings of medical samples. The first application is in determining whether pre-term babies (and possibly babies born by Caesarean) need an application of lung surfactant to protect their lungs. 15 million babies are born too soon each year and over 1 million die from premature birth complications. Respiratory Distress Syndrome (RDS), a breathing disorder caused by surfactant deficiency, affects 1 in 4 premature babies and is the most common single cause of late complications and death. Babies with RDS require mechanical ventilation, oxygen therapy and longer hospitalisation - all at significant cost. RDS complications include lung damage, cerebral palsy, retardation and blindness - chronic illnesses and disabilities that require lifelong care. RDS can be prevented with surfactant treatment at birth. However, there is no quick and safe test to identify at risk babies. Prophylatic surfactant treatment harms healthy babies so neonatologists have to wait for RDS symptoms to develop before starting treatment. A quick and accurate test is needed so that neonatologists can treat at risk babies with surfactant early and prevent RDS from developing. Lung surfactant was first administered to pre-term babies in the 1980’s by Henrik Verder, one of the founders of Sime, when it revolutionised premature baby care. Since then the care has evolved and it has become clear that it is not good to give surfactant to babies who do not need it, while the babies who need it should be given the surfactant as soon as possible to obtain the best results. Unfortunately the current tests to determine whether a baby needs surfactant are too slow and complicated and the decision to give surfactant is now driven by the deterioration of infant health. The new test should give results within 10 minutes of birth. Sime also owns IP for measurement of other biomarkers for diseases. Recent Developments SIME’s team has been working at Microsoft and has had excellent support which has now been extended. They have also opened a small lab within Southampton University to enable more rapid testing of samples on different platforms. Now that the software platform is becoming more robust, Sime has started testing on a new set of biological samples with Copenhagen’s hospital. Once the data is ready for publishing we will be able to disclose this second medical indication. SIME have submitted their claims to the EU under the H2020 programme and have been assured of receiving the money. Summary The development work is progressing well both clinically and on the product.

Expend (formerly Curoo) Investments made by Fund Date 23/12/2014

Amount £75,000

Share Price £0.005

Type SEIS www.expend.io

Fund Shareholding 14.02%

Description of Business Business expenses can be a painful experience for the employee incurring expenses, the staff who have to chase up the paperwork and the finance directors who have to deal with unexpected expenses. Companies don't like to provide expense cards due to the risk of abuse and individuals don't like to have to advance and risk their money (or credit score) for the company. Expend is developing a payment card and associated software to deal with the headache of expenses. The debit card can be controlled tightly by the company with strict spending limits and controls and the associated app ensures that all the required information is collected at the time of purchase so that the expenses process can be automated from there on. For example, when a user makes a purchase, the card will only allow a purchase to be made if it is within the limits set for it (value, geography, category of sales outlet). The user will be alerted that they have made a purchase and will be asked to take a picture of the receipt with the phone. If necessary the phone will ask additional questions so that all the required info is captured. The accounts are automatically updated and all the information is available for easy review. The employee can now distribute his admin efficiently throughout the period, the life of the admin staff is simplified and their energies more usefully employed and the directors can know in real time what expenses they are incurring. The Expend founders are two developers who have worked in the field of financial and payment systems for many years. They are assembling an expert team to cover all areas of product development. Recent Developments Expend continues to get closer to the end goal of issuing cards. The list of details that have to be sorted out is shrinking although it does seem a case of two steps forward, one step back as the requirements shift. Card designs for the first release have been approved. The way in which credit and identity checks are done has been approved. The speed of the systems is now so good that it should be possible to offer the card with no foreign currency exchange risk (i.e. exchange rates can be approved and money moved without delaying the transaction) enabling 0% cost transactions abroad. The system has been stress tested and analysed and considered to be very strong. A bank and several financial institutions have expressed interest in partnering for expansion into other countries and in the back office capabilities of the Expend software separately from the expenses solution. There is a continued stream of expression of interest from financial institutions and investors interested in the product and the proposition. Expend had raised £500k of which they had drawn down the first half and the second half will be drawn down soon. Expend’s team has grown and it is enjoying its new premises. The app has been launched and has gone through many iterations and keeps improving. You can try the application if you have an iPhone, but will not be able to make full use of it unless you happen to be a Crunch customer. Crunch is an online accounting company that is the launch partner. Please let us know if you hate doing your expenses! Expend's website is now up so you can see in more detail what the offering will be. They are also looking for feedback. Summary Expend's app is being used and appreciated by Crunch users. There is much interest from the market and the software development is going well although the company is experiencing frustrating delays due to the inexperience of the other partners in the value chain. In some ways this is not surprising given the novelty of the underlying software.

Molecular Warehouse Investments made by Fund Date

Amount

21/04/2015 02/02/2016 24/03/2016

£75,000 £75,000 £20,000

Share Price £0.6 £0.8 £0.8

Type SEIS EIS EIS

www.molecularwarehouse.com

Fund Shareholding 4.37%

Description of Business Molecular Warehouse has technology to rapidly develop and test new proteins for diagnostic and therapeutic uses. MW has developed a new type of sensor for diagnostics which yields new quantitative devices that work much like a blood glucose sensor (i.e takes a small drop of fluid and gives an numeric readout in seconds without any additional operations), but for almost any physiological analyte. There are several drugs where it is important that a patient has neither too little nor too much drug in their system. Patients need to be monitored over a period of time until the dosing is accurately determined. This can be very expensive as the patient has to either be kept in hospital or must return to the hospital daily or weekly until it is correctly dosed. Molecular Warehouse will allow patients to measure this themselves with high accuracy and communicate back to the doctors. Its first products are aimed at the transplant market and will allow accurate monitoring of drug levels outside a hospital environment (or in one but more effectively). For the development of new sensors Molecular Warehouse makes use of the services of the University of Queensland Brisbane where a large number of proprietary and commercial tools are brought together in one location allowing very rapid development of new products or leads. The company is run by CEO Siro Perez who has significant pharmaceutical and VC experience. Recent Developments The electrochemistry is being developed and tested at The Surrey Research Park site in Guildford and is being led by Lindy Murphy, who has 20 years of experience in the field. One of the theoretical benefits of the Molecular Warehouse design is that it can provide very large currents from the electrodes making measurement easier. So far the results are in line with expectation i.e. very good. The Australian research group has developed an even better design of the linking molecule which enables very high sensitivity measurements. We can’t disclose details but it further broadens the applications the Molecular Warehouse will be able to service. The company has now submitted the first firm quotes to develop a specific diagnostic for a customer. As we previously reported, Molecular Warehouse had won an Innovate UK grant and the process of initiating it is now almost complete and work on the grant can start. A small round was raised in March to match the funds from Innovate UK. Should you be aware of any companies with an interesting diagnostic that might benefit from more rapid and robust measurement, please let us know. Summary Molecular Warehouse has successfully established an electrochemistry and measurements lab. The technical results are good. The company is hoping to sign the first commercial diagnostic development contracts and will be working on two major grants.

Animal Dynamics Investments made by Fund Date 29/06/2015

Amount £75,000

Share Price £0.14

Type SEIS www.animal-dynamics.com

Fund Shareholding 3.88%

Description of Business Dr Adrian Thomas is Professor of Biomechanics at Oxford University where he founded the Animal Flight research group in Zoology. He is an expert on how animals and insects move through water and air and on land. Unsurprisingly, over millions of years, they have evolved very efficient means of doing this. So the purpose of the new company, Animal Dynamics, a spin-out from Oxford University, is to adapt the techniques and structures used by animals and insects to create more efficient and effective means of flying and moving through the water and over land. Alex Caccia, an entrepreneur with start-up experience in media, technology and manufacturing and a background in finance and investment banking, has been working with Adrian to develop the business opportunity, is the CEO. Progress Animal Dynamics has two initial development programmes. The first is to make a human-powered craft which will travel through/over water and, ideally, break the world speed record for such craft. Prototype 1 of this craft was assembled during November, and provided many useful lessons. Some progress was made during Q1, but the start of the 2016 Formula 1 season meant that all the companies who make the best carbon fibre foils were fully engaged. The prototype has now been trialled but a key component failed and is now being modified. Further trials will ensue. Animal Dynamics is also working on a major grant-funded project on flapping flying machines (like insects), the details of which are confidential. This is a demanding project and technically difficult, but good progress being. Phase 1 of this project was completed as scheduled at the end of Q2 and, the contractual details of phase 2 are being negotiated.

Ducentis Biotherapeutics Investments made by Fund Date

Amount

13/07/2015 14/12/2015

£50,000 £30,000

Share Price £0.14 £0.18

Type SEIS SEIS

www.ducentisbio.com

Fund Shareholding 34.37%

Description of Business CD200 is a protein that modulates the activity of mature immune cells. It protects certain tissues in the body such as muscles and nerve tissue from the immune cells. People who have low levels of the CD200 receptor on their immune cells are at higher risk of auto-immune diseases. The herpes virus is able to survive in the human body by producing a protein very similar to CD200 – a viral homologue. The attractiveness of CD200 is that it acts on both the innate and adaptive arms of the immune system but does not impair the function of immature immune cells so response to infections is not affected. Other groups have carried out research on naturally occurring CD200 and its homologues but although effective they are not practical and would require very frequent injections. By modifying the protein, Ducentis is seeking to turn it into a practical treatment. There are many auto-immune diseases that might benefit from such a treatment, including arthritis. Recent Developments Ducentis has had an offer of an exit but we all judged that the offer was too small and had too many contingencies to make it attractive. Ducentis is looking to raise money for the next round of research and development. The OTSEIS fund intends to participate. Please let us know if you’d like to have more information about this company. Summary Ducentis has had excellent technical results and is now in discussion about follow on funding from a variety of sources. The fund will probably participate in the funding round and there is the opportunity to invest alongside us

Bioarchitech Investments made by Fund Date 13/08/2015 08/03/2016

Amount £80,000 £40,000

Share Price £0.6 £1

Type SEIS SEIS

www.bioarchitech.com

Fund Shareholding 30.51%

Description of Business During the last century there have been sporadic reports of cancer remission following a virus infection. Bioarchitech plans improve cancer treatment by manufacturing a new generation of chimeric viruses with improved therapeutic amplification at the tumour site, and the ability to survive in the body's circulation to target tumour metastases, which are the main cause of morbidity and mortality. The CEO is Dr Geoff Hale who has an international reputation in therapeutic immunology. As a scientist, he has published over 300 articles on the mechanisms of action of antibodies. He was formerly head of the Therapeutic Antibody Centre at Oxford University, and was the founder and CEO of BioAnaLab Ltd, a successful spin-out from Oxford which grew from nothing to c. 50 people. Kevin Maskell is the principal researcher and developed the idea together with LiLi Wang and Hannah Chen. From 2002 - 2009 Kevin was a research assistant in the department of clinical pharmacology at Oxford University. From 2009 - 2013 he worked for DDS, a subsidiary of Merck Millipore ending as principal scientific director. From 2013 until joining Bioarchitech in 2015, he was the senior scientist at Oxford Cancer Biomarkers. Recent Developments After a long period in the lab Kevin Maskell now has very promising indications that the difficult task of making the chimeric virus is bearing fruits. However the results still have to be verified, so it’s too soon to cheer too loudly just yet. Summary With the first scientific results achieved, BioArchitect will seek to improve the process of production and move on to the first experiments demonstrating the effectiveness of the new virus against cancer cells.

Orbit Discovery Investments made by Fund Date

Amount

27/11/2015

£100,000

Share Price £0.73

Type SEIS www.orbitdiscovery.com

Fund Shareholding 3.26%

Description of Business Peptides are short chains of amino acids (the building blocks of proteins). They are an increasingly popular class of pharmaceuticals, sitting in between conventional small molecules and biologics such as antibodies and proteins. They can be made chemically like small molecules, but can be very specific like the biologics. The technology behind Orbit comes from Oxford University's Wetherall Institute of Molecular Medicine. It enables the rapid selection of peptides that bind onto potential drug targets and do not show unintended binding. The approach consists of creating millions of micron sized beads each with a unique peptide and pouring them over slides with the target molecule. The beads that bind can then be identified and larger quantities produced. If necessary new beads can be made which are similar to those that bind best - an evolutionary approach. The technology has already been demonstrated 3 times to identify peptides that bind as well as existing drugs or peptides in just one single step. The company will partner with large pharmaceutical companies wishing to develop new peptide drugs but will also develop its own portfolio. It is hoped the technology works rapidly enough to enable tens of drug discovery programmes to be run each year. The company is being run by Alex Batchelor who has a strong background in drug development with support from founders Prof Graham Ogg and Prof Terence Rabbitts FRS and former Oxford vice-chancellor Prof Andy Hamilton. Recent Developments The Orbit lab is housed at Oxford Brookes and opened on the first of March. The lab has now been running smoothly since April, first producing peptide beads, then selecting them against target proteins and finally sequencing them to identify the peptides of interest. The team are developing all the operating procedures so that the process will become quick and robust. Pharma companies have taken a keen interest in what Orbit are doing. We will report on specific names and contracts as soon as we can. Tom McCarthy has been appointed as chairman of Orbit. He has experience growing and then selling a company in the pharma industry. Summary Orbit recruited its operating staff at the beginning of March and the so far everything is proceeding to plan. The first internal development programmes are underway.

Curileum Discovery Investments made by Fund Date

Amount

07/03/2016 19/05/2016

£75,000 £25,950

Share Price £0.63 £0.63

Type SEIS SEIS

www.curileum.com

Fund Shareholding 13.55%

Description of Business Organoids are microscopic three-dimensional cellular structures that mimic some of the structure and function of real organs. They have therefore become an increasingly popular tool for researchers who have previously been confined to working with single-layer cell cultures which offer a poor mimicry of normal human tissue. Jeff Moore established Curileum Discovery to apply his extensive experience in organoid drug discovery and development to the field of gastrointestinal (GI) disease. Jeff has previously founded two drug development companies but most recently ran the Novel Therapies division of Epistem where his work entailed identifying and validating new intestinal stem cell targets. Curileum Discovery will use gastrointestinal organoids, effectively microscopic guts, to identify the underlying causes of GI disease and then find ways to repair or replace damaged cells. A laboratory was established in March at the Northwick Park Institute for Medical Research in North London and the team have already begun conducting their first experiments. The laboratory is in close proximity to St. Marks Hospital, one of the few hospitals in the world to specialise entirely in intestinal and colorectal medicine, which will hopefully facilitate close collaboration in the future. Recent Developments In just a few months Curileum has had a lot of interest from pharma and large biotech companies, including an expression of interest in purchasing the company (politely declined at this stage)! The yearly BIO meeting in San Diego was particularly fruitful in that respect. Curileum is clearly operating in an area of high interest: gut immunology/oncology/stem cells and the companies appreciate Jeff’s previous experience and access to patient samples. Curileum is in discussion with investors for a next round of funding which will allow it to establish the infrastructure required for internal and external R&D. Please let us know if you would like to invest directly into Curileum. Summary A very promising start, with opportunity to invest further if you wish.

TMC Applications Investments made by Fund Date 01/04/2016

Amount £37,500

Share Price £1

Type SEIS

Fund Shareholding 25.00%

Description of Business TMC Applications is the brainchild of Don Clark, a very successful financial products retailer, Derek Taylor, a financial markets and forex specialist, and Martin Taylor, a software solutions expert. The company is developing a smartphone app, website, database and related interfaces to allow it to deliver an innovative new finance product that they believe will take the retail finance market by storm. The details of the product are being kept under wraps for commercial reasons, but the Directors are confident they can build a £10m business in 3 years. (Some years ago we invested in another start-up founded by Martin Taylor. The business was successful and was sold in 2015. Everyone made an excellent financial return. Having had an idea for another start-up, Martin asked us whether we would like to invest.)

Active Needle Technology Investments made by Fund Date

Amount

05/04/2016

£50,000

Share Price £0.124

Type SEIS www.activeneedle.com

Fund Shareholding 6.08%

Description of Business When doctors make use of long needles for taking biopsies or making deep injections, they have two main problems. 1) 2)

The needles are difficult to see on ultrasound. Long thin needles often deflect on entry and do not end up exactly where intended.

Although there are some solutions to these problems, such as needles with ultrasound reflectors on them, the solutions are not optimal, making the needle less comfortable to use and still only barely visible, especially if the angle between the needle and the ultrasound is small. ANT’s active needle technology provides longitudinal movement to the needle, this results in the needle being very bright on the ultrasound (from all directions) and the needle deflects much less. The ultrasound drive also has an additional benefit in that the amount of force required to insert the needle is much reduced. This should result in less pain upon insertion and less risk of overshoot – which is the situation where the needle has difficulty piercing the skin or other tough membrane but then slides rapidly once the first barrier is breached. A leading anaesthetist we spoke to said he wished he had invented it and that it would solve a number of key problems for them, especially in conjunction with the more basic type of ultrasound to which they typically have access. ANT has identified biopsy needles as a market where all the advantages of the Active Needle come to bear, while the extra cost of the ultrasound driver will only have a small impact on the gross margin. The alternative products (without ultrasounds advantages) cost ~$200. The technology was invented and initially developed by Muhammad Sadiq at Dundee University. The company will be headed up by Ian Quirk who has been a regulatory and clinical development specialist for over 20 years, most recently at LightPoint Medical. In the next period the device will be developed sufficiently to be used in trials leading to CE marking and clinical use. The hope is that the first product will be available for sale by the end of 2017, with an enhanced version following the following year. Recent Developments ANT has finished a first prototype device which includes the new control electronics. Additional copies are being made to ensure there are back-ups for the important cadaver testing that is to take place in July. These were moved back as some components were not delivered by the first supplier. The next stage is to complete the cadaver testing and trigger the second round of funding.

Oxford Nanoimaging Investments made by Fund Date

Amount

29/04/2016

£100,000

Share Price £20

Type SEIS www.oxfordni.com

Fund Shareholding 3.13%

Description of Business Oxford Nanoimaging is a spin out from the biological physics lab of Prof Achillefs Kapanidis at Oxford University. There they specialise in super resolution microscopy, which refers to being able to resolve dimensions smaller than the wavelength of light. Prof Kapanidis, Robert Crawford and Bo Jing have invented an optical assembly which allows a microscope to be shrunk from the size of a small car to the footprint of a tablet (with a PC sized box under the bench). This not only gives a big advantage in crowded and expensive laboratories, it also does away with many of the adjustments and control requirements of other super resolution microscopes, making it suitable for beginners and experts. With the microscope it has been possible to image the processes of DNA repair in a cell. The aim is to put a Nanoimager in every biology lab. The product is already beyond the advanced prototype stage and the first two devices are being prepared for shipping to customers. The expertise of the lab is not only in the device but also in the molecular biology techniques and the image processing. A bit like a smart phone we expect there will be advances both in the hardware and in the applications that can run on it. The company is chaired by Jeremy Warren who invested alongside us and the CEO is Andrew Malloy, with FD Roger Humm. The team was previously successful together in the deployment and commercialisation of Nanosight (a nanoparticle sizing company), and had a reputation for excellent customer service. They are setting the company up for rapid expansion, with a distribution network being developed around the world. The company also has the backing of Oxford Technology Innovation and Oxford Science Innovation.

Eva Diagnostics Investments made by Fund Date 19/05/2016

Amount £75,000

Share Price £14.78

Type SEIS www.evadiagnostics.com

Fund Shareholding 3.65%

Description of Business Eva Diagnostics was set up by Toby Basey-Fisher and Millie Clive-Smith, who joined forces to use a technology platform developed at Imperial College and won the OneStart competition in 2014. The company was registered in 2014 and gained backing from the Royal Academy of Engineering and an Innovate UK grant. We joined as the first investors. The team of 8 has a mix of product design, imaging, software and electronics skills, and it really shows with all aspects moving along in concert. The product is a hand held device for measuring blood count parameters which is connected to the cloud. They have been able to use some mass produced component to combine low prices with high accuracy. The first product is Anemipoint and measures haemoglobin and haematocrit (red blood cells) and enables a differentiation in the diagnosis of anaemia – is it lack of haemoglobin or lack of red blood cells. The second product will add platelet count, and the two major categories of white blood cells. Following that will be a whole blood count device. The first device will find use both in the developing world (where anaemia is the most prevalent medical condition) and in the management of chemotherapy and certain blood related conditions in the developed world. The device is low enough cost and accurate enough that patients will be able to monitor some key variables and know whether or when they need to go in to hospital for the next round of treatment. Anaemia is typically tested 4 times in the course of a pregnancy; a quick and easy anaemia test that only requires a pin prick of blood could be very helpful in saving time, travel and bother for patients that don’t otherwise need attention. Eva Diagnostics is undergoing ISO 13485 certification and hopes to be in a position to start marketing the first product by the end of 2016. There is already some significant interest from distributors and potential partners.