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Research and development (R&D) tax credits, Innovation Funding, Forschungszulage and traditional grants are some of the valuable government incentives across the world which reward companies for investing in innovation.
They have the power to transform companies are a powerful tool to fund companies wanting to grow and to add value to their investors. We specialise in helping Private Equity firms, Venture Capital companies and their scaling portfolio companies unlock R&D Tax Credits. This non-debt non-dilutive funding for innovation is the perfect ying to an investor’s yang.
When deployed strategically, they can significantly boost a portfolio. We can help you enhance value, increase cashflow, add innovation expertise and extend runway without any risk due to our success fee only model.
Aligning R&D tax credits with Investment Strategies In the current VC markets where liquidity is plentiful it can be easy to overlook the other non-debt & non-dilutive opportunities but the benefits of using The Change to manage this for your portfolio are manifold.
Why The Change?
– We provide a smart, experienced and fast service which offers peace of mind on all the little details of your R&D tax credit claims.
– We don’t charge unless we’re successful. Our fees are taken as a portion of the credit or repayment HMRC gives you.
– Our terms of service have no nasty surprises or hidden extras.
– We offer guidance and expertise in innovation planning strategies as an additional service to help provide direction to your innovative products and/or services.
1. Cash Upside
In simple terms we deliver through R&D Tax Credits a non-debt & non-dilutive cash benefit to your portfolio companies. This will help drive business growth and profitability without sacrificing equity, is really valuable
and can help drive future profitability. This can help drive profits, lead to enhanced valuation and extend runway between rounds.
While many investors and scaling companies are aware of R&D Tax credits, very often they are merely used for tax reduction rather than applied with the ‘Innovation First Principle’ of The Change which unlocks significantly greater amounts of rebate, up to x10 greater than standard accountancy treatment, meaning a portfolio can unlock cash in the tens of millions which otherwise remains on the table.
We provide a full review of your portfolio and an overview of the additional cash opportunity available to you. Whether portfolio companies are loss making, profitable, scaling or indeed cross-jurisdictional we will review their innovations and identify the untapped funding available to help drive the growth of their companies and the value of your portfolio.
Depending on the jurisdiction of your portfolio companies there may be particularly strong help for early stage, loss making or scaling companies with financial support available for new hires, equipment, intellectual property and business growth.
2. Non-debt, Non-dilutive runway
How advantageous would it be to extend runway between rounds from perhaps 12mths to 18mths without dilution while allowing the Founding / Executive Team to concentrate on growing their company.
With our help, on a risk-free basis, we can deliver this across your portfolio. Strengthening your portfolio companies between rounds. The additional time between rounds can be better used building product, acquiring users, developing IP leading to higher valuation and less dilution at the next round.
3. Pitch Deck Opportunity
We often pre-approve or create multi-year innovation plans to unlock R&D claims (jurisdiction dependent) and this pre-approval can be a very strong signal in a pitch deck for investors to evidence the innovative nature of the company, to solidify that they’re using all available financing opportunities this being financially astute and to evidence that there will be additional non-debt & non-dilutive runway if an investment is made creating greater value for the investor at the next round.
4. The Value Add of The Change
In addition to being Innovation Consultants and Accountants with expertise in R&D Innovation our Senior Team is also experienced in Venture.
We will work very comfortably with your Team and portfolio companies. We understand that time is valuable so you require a partner who can handle everything end to end and extract maximum value at the same time.
We will work strategically but also granularly on your portfolio identifying the full scale of the R&D tax credit opportunity. We will help you turbocharge your portfolio to such an extent that you will be confident in the current competitive landscape that part of the additional value you can bring over other investors is the non-debt & non-dilutive additional funding you’ll help investee’s obtain.
1. Review of Existing portfolio
We will review your existing portfolio and quickly identify the scale of the opportunity available across current investments.
If there are companies which have not claimed we will review eligibility and for those which have already claimed we will review the scale of additional opportunity available.
Remember, we often 10X the size of claims because of our our Innovation First Principles when compared to accountancy only approach of most of our industry.
2. Ongoing strategic advice
We will appoint a dedicated Innovation Consultant to your portfolio who will liaise with you and each portfolio Team. We have experience across every sector and can advise globally if you’re investing across multiple jurisdictions.
Whether you’re investing in Germany, UK, Singapore, or elsewhere The Change has a wide knowledge of the grants, R&D and other funding structures available to your client companies. Whether those be in Tech, Manufacturing or any other sector it does not matter. Our expert Team will advise to maximise the Innovation Funding opportunity.
3. Key Benefits for Venture Backed Companies
With you often as a minority shareholder in your invested businesses your firms can often take advantage of the maximum available funding given most jurisdictions incentivise entrepreneur led firms with the largest incentives.
We understand that you as a venture investor together with your invested teams are firmly focused on taking your companies to new scales of success.
Growth in adoption, your technology or your traction must be your sole focus.
The Change understands this and this is why we are here to ensure that your highly innovative fast growing companies do not miss out in funding opportunities due to them. Venture backed firms often have innovative
missions, and disruptive technologies that can and should be supported by R&D, Grants and other funding pots. With The Change in place we will ensure your firms don’t miss out and whether that is benefit in extra cash to invest, or whether that extends a perilous run way your firms deserve the right support for the mission they are on.
We have gained individual Venture backed firms €5,000,000 plus of non dilutive non debt funding and may be able to do that for your investments too.
– Specialist knowledge to identify potential Portfolio Valuation Uplift
– Unique ‘Innovation First Principles’ applied to create multi-year Innovation Plans for portfolio companies
– An experienced partner in VC who understands your model
– Additional non-debt & non-dilutive runway
– Dedicated Account Manager
– Expertise across all sectors
– International experience, wherever you invest, we advise
– Up to 10X uplift in claims from traditional accountancy based approaches
– We value your time so we provide an end to end complete service
– Zero risk, success fee only
– Smart record keeping to track innovations