Oxford Technology Combined SEIS and EIS Fund · Invested Date SEIS/EIS Net Cost Fair Value Multiple* Method of Valuation Business Sasets Latest Share Price £75,000 30/07/2014 SEIS

Oxford Technology Combined SEIS and EIS Fund

- OT(S)EIS -Quarterly Report to 5th April 2016

SummaryBy 5th April 2016, OT(S)EIS had completed 43 investments in 22 companies. Details of all the investments andhow they are doing are given below.

It has been a good quarter and one can now see the valuations of some of the earlier investments beginningto increase as they have raised additional capital at higher share prices. Specifically the figures are as follows:

Gross amount invested by OT(S)EIS: £2.35mNet cost of these investments after tax reliefs (1): £1.33mFair value (2): £4.38mTax free gain: £3.05m

1. Assuming only income tax relief for a 40% taxpayer. The Net cost will be even less for investors in the fundwho 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 inthe company. If, following an investment, things have gone wrong, then the valuation is reduced. But ifthings have gone well, the valuation is not increased. To this extent the valuations are conservative. Forexample, by December 2015, it was clear that Combat Medical was making excellent progress with itsimproved treatment for bladder cancer. But the valuation of this investment was not increased untilinvestment 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 onlyone 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.

However, it is clear that things are going well, as we thought they would, and we are aware of more goodnews coming down the track which is not yet reflected in higher valuations. The SEIS and EIS schemes domake a major difference to the economics of investing in high risk/high potential reward start-ups. Animportant part of our approach is to make relatively small initial SEIS investments in start-ups. Then we investmore in those businesses which are developing well. This means that we expect the losses on those that failto be small, while the gains on those that succeed may be large.

We have had two failures so far (there will certainly be more in future - investing in technology start-ups ismaybe one of the riskiest of all forms of investing - there are so many things that can and do go wrong). Thetwo investments were of £41,000 and £50,000 respectively and the losses after income tax relief will be£12,300 and £21,000. This compares with potential tax free gains of over £1m and over £500,000 on twoother investments in which the initial investments were £75,000 each. But because these investments madegood progress, additional capital was invested.

It is a very common sense strategy, and it is good to be able to see encouraging results beginning to comethrough.

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% - Capital Gains Tax bill reduced by 14% of 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

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% - Capital Gains Tax of up to 28% of investment is deferred. 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 investor with income tax of £25,000 to pay and capital gains of £100,000 (on which £28,000 is due to bepaid) invests £20,000 under the SEIS scheme.

Investment:Income tax bill reduced by 50% of this: Capital Gains tax bill reduced by 14% of this:Net cost of investment:

Should the investee company fail, the remaining part of the investment on which income tax relief has notbeen claimed (£10,000 in this example), may be set against the investor's income tax liability.

For a 45% tax payer, this relief is worth £4,500For a 40% tax payer, this relief is worth £4,000For a 20% tax payer, this relief is worth £2,000

Therefore for a 45% tax payer, with Capital Gains to pay, the loss will be £2,700, so just 13.5% of the £20,000cost. In the event that the investment fails. If the investments succeeds, and the shares are sold for £40,000(so twice the purchase price) the £40,000 would be tax free, a multiple of more than 5 times the net cost.

£20,000-£10,000

-£2,800£7,200

OT(S)EIS Fund Portfolioas at 5th April 2016

CompanyAmountInvested Date SEIS/EIS Net Cost Fair Value Multiple*

Method ofValuationBusiness

Run3D LatestShare Price

18/12/2012£100,000 £50,000 £100,000 2.00SEIS

18/10/2013£15,000 £7,500 £15,000 2.00SEIS

18/10/2013£10,000 £10,000 £10,000 1.00Non SEIS/EIS

3D gait analysis forphysiotherapy

BioMoti Discounted by50%

08/01/2013£75,000 £37,500 £37,500 1.00SEIS

28/05/2014£40,000 £28,000 £23,200 0.83EIS

Improved CancerDrugs

CombatMedical

LatestShare Price

05/04/2013£75,000 £37,500 £245,300 6.54SEIS

05/12/2013£75,000 £52,500 £223,000 4.25EIS

29/10/2014£10,000 £7,000 £28,300 4.05EIS

05/12/2014£34,300 £24,000 £97,100 4.05EIS

10/03/2016£75,000 £52,500 £75,000 1.43EIS

Bladder cancertreatment

MessageMissile

Discountedto £0

23/05/2013£16,000 £8,000 £3,200 0.40SEIS

18/10/2013£5,000 £2,500 £1,000 0.40SEIS

19/06/2014£20,000 £10,000 £4,000 0.40SEIS

Mobile Appenhancement(geo-locationnotifications)

IbexisTechnologies

Discountedto £0

24/05/2013£50,000 £35,000 £14,000 0.40EISRemote datalogging

*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 (andassumes 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.



LightpointMedical

LatestShare Price

04/06/2013£75,000 £37,500 £802,000 21.39SEIS

10/03/2014£75,000 £52,500 £199,500 3.80EIS

07/11/2014£10,000 £7,000 £21,400 3.05EIS

04/12/2014£125,000 £87,500 £267,100 3.05EIS

10/03/2016£100,000 £70,000 £100,000 1.43EIS

24/03/2016£20,000 £14,000 £20,000 1.43EIS

Real-time imaging forcancer surgery

Metal Powder& Process

LatestShare Price

16/08/2013£150,000 £75,000 £150,000 2.00SEISHigh quality metalpowder production

Power OLEDs LatestShare Price

11/12/2013£75,000 £37,500 £75,000 2.00SEIS

18/07/2014£25,000 £17,500 £25,000 1.43EIS

27/04/2015£30,000 £21,000 £30,000 1.43EIS

04/09/2015£30,000 £21,000 £30,000 1.43EIS

Improved OLEDtechnology

Abgentis LatestShare Price

27/03/2014£42,200 £21,100 £42,200 2.00SEISImproved antibiotics

DesignerCarbon

Materials

LatestShare Price

03/04/2014£75,000 £37,500 £75,000 2.00SEISEndohedral fullereneproduction





Sasets LatestShare Price

30/07/2014£75,000 £37,500 £175,000 4.67SEIS

22/01/2016£75,000 £52,500 £75,000 1.43EIS

Software forconstruction industry

SimeDiagnostics

LatestShare Price

04/09/2014£75,000 £37,500 £75,000 2.00SEISRapid diagnostic toprotect pre-term

baby lungs

Expend(formerly

Curoo)

LatestShare Price

23/12/2014£75,000 £37,500 £650,600 17.35SEISSoftware to reducepaperwork for

expenses

MolecularWarehouse

LatestShare Price

21/04/2015£75,000 £37,500 £100,000 2.67SEIS

02/02/2016£75,000 £52,500 £75,000 1.43EIS

24/03/2016£20,000 £14,000 £20,000 1.43EIS

Proteins fordiagnostics and

therapeutics

AnimalDynamics

LatestShare Price

29/06/2015£75,000 £37,500 £75,000 2.00SEISMechanicalengineering inspired

by animal motion

DucentisBiotherapeutics

LatestShare Price

13/07/2015£50,000 £25,000 £64,300 2.57SEIS

14/12/2015£30,000 £15,000 £30,000 2.00SEIS

Immune modulationtherapeutics

Bioarchitech LatestShare Price

13/08/2015£79,600 £39,800 £132,600 3.33SEIS

08/03/2016£40,000 £20,000 £40,000 2.00SEIS

Engineered oncolyticvirus





Orbit Discovery LatestShare Price

27/11/2015£100,000 £50,000 £100,000 2.00SEISPeptide drugdevelopment

CurileumDiscovery

LatestShare Price

07/03/2016£75,000 £37,500 £75,000 2.00SEISIntestinal tracttherapies

TMCApplications

LatestShare Price

01/04/2016£37,500 £18,800 £37,500 2.00SEISOnline financialInterface

PoïesisTherapeutics

LatestShare Price

04/04/2016£100,000 £50,000 £100,000 2.00SEISInnovative medicinesfor pets

Active NeedleTechnology

LatestShare Price

05/04/2016£50,000 £25,000 £50,000 2.00SEISUltrasound visibleneedles



£100,000£15,000£10,000

SEISSEIS

Non SEIS/EIS

18/12/201218/10/201318/10/2013

Investments made by Fund

36.76%Fund Shareholding

Date Amount TypeShare Price£0.15£0.15£0.15

www.run3d.co.uk

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 thebiomechanics of running. She has numerous blues and was the Oxford Sportswoman of the Year in 2008/09.Runners have reflective balls attached to their various joints (hips, knees, ankles) and also at various otherpoints on their legs and then run on a treadmill. Special cameras capture the image of the balls at 200frames/sec and this data is then fed into a computer programme, originally developed by an academic inCanada and to which Run3D has exclusive UK rights for an initial period of three years. The computer thenoutputs a complete gait analysis, giving every detail of the gait, the angle of heel-strike, the rotation and rateof 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 thelikelihood of future injury.

There are now 2m people who run every week in the UK and the statistics show that 1m of these will developrunning 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 thenew Bosworth Clinic in Cassington, near Oxford and also opened five franchsies.

However, it became clear that there were many opportunities to improve the software and that theseimprovements were not going to be forthcoming from Canada. So an agreement was reached with acompany in Amsterdam, a specialist in this area, that they would implement Jessica's suggestedimprovements in a new software suite in exchange for a 20% share of the company. The revenue from theexisting franchisees meant that the business was approximately at breakeven and it was decided that no newfranchises would be opened until the new software was ready.

Parts of the new software are now working well, and it is hoped that it will ready to be used by the existingfranchisees in April/May. As soon as it is working well with the existing franchisees, the plan will be to openmore franchisees both in the UK and globally. But the economics of the business will be much improvedsince it owns the new software outright and will not have to pay any license fees.

Run3D

£75,000£40,000

SEISEIS

08/01/201328/05/2014



Date Amount TypeShare Price£0.05£0.05 www.biomoti.com


BioMoti is based on technology from Queen Mary University of London. Its founders are Dr. Davidson Ateh and Prof. JoMartin who was appointed as Head of Pathology for the NHS in early 2013. The chairman is Keith Powell who has longexperience in early stage biotechnology companies.

Tumour cells including those from ovarian, breast, pancreatic colon, prostate and bladder cancer overexpress aparticular ligand, CD95L on their surfaces. CD95L helps tumours to avoid the immune system by killing off certainclasses of immune cells and is also associated with triggering cancer metastasis. The scientists have discovered that if asmall particle is coated with CD95R (which binds to CD95L), the cancer cell will engulf the particle and draw it inside. Byloading a chemotherapeutic drug into a biodegradable particle coated with the receptor molecule, it is possible todeliver high concentrations of chemotherapy drug into the cancer cells. The first product uses paclitaxel to targetovarian cancer in a much more efficacious and less toxic manner with the potential to extend use to further cancerssuch as hard to treat breast cancers. BioMoti’s technology, called Oncojan™, can dramatically increase the efficacy ofstandard clinical treatments whilst reducing side-effects in healthy tissues. This is no longer an idea. Preclinical testshave shown remarkably good results, with 65-fold reductions in tumour burden, doubling of median survival andsignificant decreases in toxicity seen in an ovarian cancer model when the technology is applied and compared with thecurrent clinical standard-of-care.

Biomoti also discovered that CD95L is overexpressed in tumor vasculature and it is therefore possible to accuratelytarget tumors systemically.

Recent Developments

BioMoti has signed a non-binding Heads of Terms with Physiomics PLC. Under the head of terms Physiomics will have 6months to raise the required funds to further BioMoti’s developments. The stock market announcement of this can befound here: (http://www.iii.co.uk/research/LSE:PYC/news/item/1898797/heads-terms-biomoti-and-board-changes?context=LSE:PYC)If they are successful BioMoti will be acquired in a share transaction such that BioMoti shareholders will hold 1/3 of theshares in the company (pre-investment). Negotiations with an international pharma company about joint workcontinue.

Summary

The first strategy for the company (to do internal lab development work supported by grants) has not been successfulin the short-term and the company has cut its cost base in order to prolong its life and allow more time for businessdevelopment. The discovery that the target molecule is widely present on blood vessels in tumors along with a role inimmuno-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 6 months how thatunfolds.

BioMoti

£75,000£75,000£10,000£34,250£75,000

SEISEISEISEISEIS

05/04/201305/12/201329/10/201405/12/201410/03/2016



Date Amount TypeShare Price£4.31£4.74£4.98£4.98£14.1

www.combat-medical.com


Combat Medical develops and manufactures devices for the treatment of bladder cancers. Its device consists of acontrol unit and a disposable heat exchanger and catheter. These are used to deliver a treatment consisting of heatinga chemotherapy liquid and circulating this through the bladder, rather than cutting out tumours in the bladder which isthe current treatment. The standard treatment for bladder cancer results in up to 78% recurrence of tumours whichthen 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 beinginvestigated as a standalone treatment. It is also much less expensive, since the repeated surgery required to treatbladder cancer is extremely costly. Combat's devices are already CE marked and may therefore be used by doctors; thecompany is undertaking additional clinical trials to make it a standard of care. The hope is that the new treatment willin time become the most common treatment both in the UK and globally. If so, then the company will become veryprofitable 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 patientsdramatically. The device is now in use in 80 hospitals. Presentations at urology conferences are generating muchinterest and we expect to take on new distributors throughout the year. For example, the first Australian treatmentswith HIVEC were carried out in January.

The HIVEC 1&2 trials are being extended to ensure that significance is achieved. This has proved necessary due to thebetter than expected performance in the standard care arm of the trial. 2 new centres have joined the HIVEC R trial(administration of HIVEC before surgery).A treatment registry, HIVEC E has been established and is proving popular with the clinicians. It now contains details of

over 400 patients.

The current gold standard therapy for certain stages of bladder cancer is BCG. Combat had a stroke of luck in that worldproduction of BCG was halved for a period of time. This meant that doctors had to look for alternatives and this lead toa relatively quick adoption of HIVEC. Now that BCG is again in production, doctors are required to use it again.Clinicians who have seen the benefits of HIVEC are adopting protocols that combine BCG and HIVEC.

Combat has almost completed the first portion of a £2m fund raise with ~£1m committed. As fund raising is in progress,the percentage shareholding is approximate.

Summary

Combat is doing well, with growing adoption and good clinical outcomes. The team has grown to allow the companyto continue its expansion. The full return to the market of BCG will pose a challenge, but clinicians who have usedHIVEC a lot appreciate the treatment benefits.

Combat Medical

£16,000£5,000

£20,000

SEISSEISSEIS

23/05/201318/10/201319/06/2014



Date Amount TypeShare Price£0.04£0.08£0.01

www.messagemissile.comwww.notifu.co.uk


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 tothe mobile phones of their customers based on their location. So a grocery store could send a message to any of itscustomers who are within 500 yards of the store, saying that they have a special offer on corn on the cob, for the next60 minutes. NotifU is a free app for use by the public. It opens with a map centered on the user's location and showsoffers, 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 devoteas much time to the business as he had hoped. But Thomas was able to engage more during his second year, andslightly better progress was made.

Current Position

The business has now been closed and the company will be struck off the register at Companies House at some point in2016. 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 £41,000Tax relief against income tax £20,500Loss relief (40% of £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.

Message Missile

£50,000 EIS24/05/2013



Date Amount TypeShare Price£0.01

www.ibexis.com


Ibexis Technologies designs and manufactures self-contained dataloggers which will operate in remote placesand record and transmit data back to base either using the local mobile phone network or via a satellite. Oneof the founders was previously involved in a similar business which was ultimately unsuccessful but whichhad supplied dataloggers for the following applications:

1. Monitoring the sale of ice from ice vending machines on garage forecourts in the US2. Weather stations in Indonesia3. Monitoring water levels in Norway and Sweden4. Measuring snowfall and water levels in remote mountain regions in Norway5. Monitoring rainfall in the US6. Weather stations in Holland7. Monitoring temperatures in buildings in the UK8. Monitoring the second by second power consumption of large telecom infrastructure in Austria.9. Monitoring levels of fuel in rail depots in the UK10. 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 bepowered by a battery or by a small solar panel or windmill in remote locations and may be programmed tosend 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 usedanywhere in the world in a wide variety of applications. The hope is that the volume and variety of theapplications 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 hasbeen 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.

Ibexis Technologies

£75,000£75,000£10,000

£125,000£100,000

£20,000

SEISEISEISEISEISEIS

04/06/201310/03/201407/11/201404/12/201410/03/201624/03/2016



Date Amount TypeShare Price£0.047£0.190£0.238£0.238£0.509£0.509

www.lightpointmedical.com


In breast cancer surgery a surgeon cannot see whether the entirety of a tumour has been removed. Roughly onequarter of surgeries for early-stage breast cancer need to be repeated to remove small residues which were missed inthe first operation.

Lightpoint has developed an imaging technology based on Cherenkov emission which provides to surgeons a real timeimage of the cancer. The patient is given FDG-18, a common radioactive tracer which is taken up preferentially bytumours, and the surgeon is able to see the tiny amounts of light emitted from the radioactive tissue. The first productis LightPath, a specimen analyser for intra-operative margin assessment, which allows surgeons to determine whetherthe tissue they have removed has a safe margin around it. The second product is EnLight, a hand-held molecularimaging fibrescope for open surgery. Lightpoint is very actively engaged with surgeons to ensure that the products areideally suited to their needs.

Recent Developments

Following the commercial launch there was a lot of interest and Lightpoint will seek to select the optimal launch sites.The clinical trials in breast cancer and prostate cancer surgery are continuing. Clinical interest remains very high. CEmarking was achieved in October 2015.

Lightpoint has won a €2.4m grant which will partially fund the pivotal breast cancer study in Europe. The study will startsummer 2016.

The first CE marked Lightpath machine is now in operation in London.

Lightpoint has moved to a new site in Chesham to accommodate its expanding team and to reduce costs.

An investment round is underway and £2m was raised at a first close. We participated in the round. As fund raising is inprogress the percentage shareholding is approximate.

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.

Lightpoint Medical

£150,000 SEIS16/08/2013





Metal Powder & Process (MPP) will produce high quality metal powders for the aerospace, medical, and otherindustries, by gas atomisation. Metal is melted at the top of the atomiser, a machine the size of a small house, pouredthrough 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 certaincomponents, e.g. gearwheels used in cars, by metal injection moulding powdered steel, than it is to start with solidsteel and then cut each tooth on a machine. Metal injection moulding also produces parts which are more accurateand stronger.

Due to the incorporation of some novel technology, it is hoped that the atomiser (known as Bertha) operated by MPPwill produce powder of higher purity than the powders produced by existing atomisers. This, in turn, should make thepowder suitable for use in the aerospace industry. In the past, the aerospace industry has been reluctant to usepowdered metal since the impurities which are present in powders produced by existing designs of atomisers arepotential crack-initiation sites.


Work on completing and commissioning Bertha has been continuing since the investment. The first powder sales wereachieved 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 wentperfectly and took approximately 11 minutes (plus several hours for preparation, applying the vacuum, heating andmelting the metal, back filling with inert gas and post-pouring cooling.) This was very encouraging and bodes well forthe future. Now the task is to scale up production and increase orders.

In the quarter to 31 March, some small quantities of conventional powder for sale were produced, but for much of thequarter, work was being done developing refinements and improvements for Bertha. If these developments aresuccessful (and considerable technical risk remains) Bertha should be able to produce certain high value powders moreefficiently than anyone else.

Summary

Much remains to be done on the organisational/ management front.

Metal Powder & Process

£75,000£25,000£30,000£30,000

SEISEISEISEIS

11/12/201318/07/201427/04/201504/09/2015



Date Amount TypeShare Price£0.50£0.50£0.50£0.50

www.poweroleds.co.uk


Professor PK Kathirgamanathan, based at Brunel University, and known as PK, is one of the world's leading experts onOLEDs (Organic Light Emitting Diodes). The specialist materials that he has developed are already used in a largenumber of commercial Organic Light Emitting Diode (OLED) applications, most commonly in the screens of mobilephones. He has now established a new company, Power OLED Ltd, the purpose of which is to develop and market newmaterials 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 levelsFor 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 aconsequent reduction in costs. Power OLEDs has achieved comparable efficiency to the current standard using amaterial that is spin-coated as opposed to deposited by vacuum processing which would reduce processing costsignificantly in the long term. It is possible that these improved OLEDs will in future be used as lighting. Such lightswould 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 amanufacturing capability for other markets.

Recent DevelopmentsPhosphorescent light emitters are more efficient than fluorescent ones and OLED reds and greens are typicallyphosphorescent. The electronic properties of normal hole transporters do not allow phosphorescent blue emitters tobe used. Power OLED’s hole transport material has now been tested with phosphorescent blue emitters and yields asix-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 ofmaterials in small quantities and production is being scaled up with our production partner in Korea so we can provide100s of grams of materials. Unfortunately the person who had been doing the purification of the Power OLED materialshas left the university and work has come to a halt. The sublimation purification technique is specialized and it willrequire several months for a new person to be trained up. Work will be resumed once sufficient funding is raised toenable new staff to be hired. Funding discussions are progressing – with company now focussing on a raise of £500k.

The OLED industry keeps growing and the requirements for higher performance are playing into Power OLED’s hands astheir materials have the desired characteristics.

SummaryThe company has delivered the first materials for testing and they have shown big advantages in some areas. A keyperson has moved from the university and new individuals need to be hired in. This has resulted in a delay which willonly be resolved upon new funding.

We will likely invest some more in this round and if you are interested to invest directly into the opportunity please letus know.

Power OLEDs

£42,000 SEIS27/03/2014




www.abgentis.com


Dr Lloyd Czaplewski FRSC is the founder of Abgentis and an experienced entrepreneur as well as an expert in thestructure of antibiotics. The rise of anti-biotic resistance has put pressure on pharmaceutical companies to acquire newproducts. 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 compoundthat was effective in the market but was not competitive due to resistance and side-effects. The programme of work isdesigned to improve the potency and resistance frequency and to minimise the side effects in order to create aninternationally competitive product. The aim is to develop the new product to the point where it can be acquired. Thiswill require testing microbiology and pharmacokinetics as well as toxicology of a number of variants.

Recent Developments

Testing of the materials has given the company confidence to continue with a shortlist of compounds. Although therehave been difficulties, there is now progress being made and a larger quantity of the key compound has now beenmanufactured that can now be used for the next stage of optimisation.

Abgentis will be attending the key biotech and pharma conferences which are coming up to refresh commercialcontacts.

Summary

Abgentis continues to make progress towards the goal of developing antibiotics which are less likely to allow antibioticresistance to develop in bacteria. The development work carried out to date should result in new and valuable IP. Thespecialists who are carrying out the development work are quite confident that a solution may be found to thetechnical difficulties which have been encountered.

SEIS noteThe low burn rate of the company means that it has taken some time to reach the 70% spend hurdle required for SEISso the tax forms are not yet available. The 70% level has now almost but not quite been achieved. The next pieces ofwork will enable the SEIS forms to be applied for. When the spending is complete the tax breaks should be applicableto the 2013-14 tax year (or even back dated to 2012-13).

Abgentis

£75,000 SEIS03/04/2014




www.designercarbon.com


Professor Kyriakos Porfyrakis works in Materials Department of Oxford University. Over the last few years, he hasdeveloped a method of producing small quantities of endohedral fullerenes. Carbon exists in many forms, includinggraphite and diamond. But carbon can also exist as fullerenes, hollow spheres of carbon atoms, the simplest of which ismade up of 60 carbon atoms. Kyriakos has developed a method of making fullerenes which contain an atom of anotherelement 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 improvingthe 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 capacityat 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.


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, so200 micrograms of the N@C60. This is a price of more than £100m per gram, so we think this might be the mostexpensive material on the planet. The first half of this was delivered in Q1 2015. The material will be used in a researchproject whose aim is to produce an extremely accurate atomic clock on a chip so that it could be used in a mobilephone. This would enable GPS to be accurate to within c 1mm which would have many potential applications includingcontrolling driverless cars.

In December 2015, an article about "Oxford scientist makes most expensive material on planet." appeared in the DailyTelegraph and was widely taken up around the world, which led to some potentially useful enquiries including from theChemistry department in Yale.

The production process results in a mixture of compounds, among which are the desired endohedral fullerenes, whichthen have to be separated from the mix. The company is continuing to seek ways both to increase the rate ofproduction 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 possibleapplication is a photovoltaic sun-roof panel for a major car manufacturer.

Designer Carbon Materials

£75,000£75,000

SEISEIS

30/07/201422/01/2016



Date Amount TypeShare Price£0.12£0.28 www.sasets.com

Description of BusinessSasets provides software for construction companies which enables them to replace paper forms with formson mobile devices. The forms may have information such as the weather entered automatically and mayincorporate geotagged photographs. The net result is a jump in efficiency and a huge time saving. The formsare transmitted instantly to the department where they are needed, a huge improvement on the oldmethods of sending forms in triplicate by post to departments which then have to re-enter the data.

Time stamped, geotaggged photographs may be added to the forms, a great advantage in many situations.


As so often, things went more slowly than hoped and new issues emerged when the product began to beused in the field. But technical development continued and by Dec 2015, there were 95 users in threecompanies, and support calls had diminished almost to nothing (a very good sign.) By the end of March thishad 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 will also appearon the crowdfunding platform Syndicate Room, probably in April, seeking to raise up to £75,000 to furtherincrease marketing expenditure.

Summary

After a slower-than-hoped-for start, the Sasets software is working well. Support calls have diminished to atrickle and the number of customers and the number of users is increasing. The aim now is to increasemarketing and to increase the rate of growth.

Paying users Corporate customersAug 2015 22 2Dec 2015 95 3Mar 2016 133 4

Sasets

£75,000 SEIS04/09/2014




www.simediagnostics.co.uk


Sime Diagnostics makes use of mathematical techniques to extract the greatest possible amount of information fromspectrometric readings of medical samples. The first application is in determining whether pre-term babies (andpossibly 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. RespiratoryDistress Syndrome (RDS), a breathing disorder caused by surfactant deficiency, affects 1 in 4 premature babies and isthe most common single cause of late complications and death. Babies with RDS require mechanical ventilation, oxygentherapy and longer hospitalisation - all at significant cost.

RDS complications include lung damage, cerebral palsy, retardation and blindness - chronic illnesses and disabilitiesthat require lifelong care. RDS can be prevented with surfactant treatment at birth. However, there is no quick and safetest to identify at risk babies. Prophylatic surfactant treatment harms healthy babies so neonatologists have to wait forRDS 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 preventRDS from developing. Lung surfactant was first administered to pre-term babies in the 1980’s by Henrik Verder, one ofthe founders of Sime, when it revolutionised premature baby care. Since then the care has evolved and it has becomeclear that it is not good to give surfactant to babies who do not need it, while the babies who need it should be giventhe surfactant as soon as possible to obtain the best results. Unfortunately the current tests to determine whether ababy needs surfactant are too slow and complicated and the decision to give surfactant is now driven by thedeterioration 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 has entered a partnership with Microsoft who will provide the cloud platform. New staff have been hired toexpand the software team internally, and they are now based in one of Microsoft’s London centres.

Now that the software platform is becoming more robust, Sime has started testing on a new set of biological sampleswith Copenhagen’s hospital. Once the data is ready for publishing we will be able to disclose this second medicalindication.

Sime has arranged financing to cover the foreseeable future and we will be participating in the funding.

Summary

The development work is progressing well both clinically and on the product.

Sime Diagnostics

£75,000 SEIS23/12/2014




www.expend.io


Business expenses can be a painful experience for the employee incurring expenses, the staff who have to chase up thepaperwork and the finance directors who have to deal with unexpected expenses. Companies don't like to provideexpense cards due to the risk of abuse and individuals don't like to have to advance and risk their money (or creditscore) for the company.

Expend is developing a payment card and associated software to deal with the headache of expenses. The debit cardcan be controlled tightly by the company with strict spending limits and controls and the associated app ensures that allthe required information is collected at the time of purchase so that the expenses process can be automated fromthere on. For example, when a user makes a purchase, the card will only allow a purchase to be made if it is within thelimits set for it (value, geography, category of sales outlet). The user will be alerted that they have made a purchase andwill be asked to take a picture of the receipt with the phone. If necessary the phone will ask additional questions so thatall the required info is captured. The accounts are automatically updated and all the information is available for easyreview. The employee can now distribute his admin efficiently throughout the period, the life of the admin staff issimplified and their energies more usefully employed and the directors can know in real time what expenses they areincurring.

The Expend founders are two developers who have worked in the field of financial and payment systems for manyyears. They are assembling an expert team to cover all areas of product development.

Recent Developments

In Q4 2015 Expend raised a further £500k of which they have drawn down the first half. As Expend’s team has grown ithas now moved to new premises in London. Both the old and new premises are shared with other softwaredevelopers, but the new one is smaller and better managed so it’s easier to get work done.

The app has been launched and has gone through many iterations and is getting better and better. New aspects includea very rapid signup that does not require any passwords. You can try the application if you have an iPhone, but will notbe able to make full use of it unless you happen to be a Crunch customer. Crunch is an online accounting company thatis the launch partner.

An Expend user was overheard singing its praises over dinner in a restaurant in Reading. Word is getting aroundalthough no external card has been issued yet. Please let us know if you hate doing your expenses! Expend's website isnow up so you can see in more detail what the offering will be. They are also looking for feedback.

The system has been stress tested and analysed and considered to be very strong. A bank and several financialinstitutions have expressed interest in partnering for expansion into other countries and in the back office capabilitiesof the Expend software separately from the expenses solution.

Summary

Expend's app is being used and appreciated by Crunch users. There is much interest from the market and the softwaredevelopment is going well although the company is experiencing frustrating delays due to the inexperience of the otherpartners in the value chain. In some ways this is not surprising given the novelty of the underlying software.

Expend has raised sufficient funds to carry out the next year of development work.

Expend (formerly Curoo)

£75,000£75,000£20,000

SEISEISEIS

21/04/201502/02/201624/03/2016




£0.8£0.8

www.molecularwarehouse.com


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 that works much like a blood glucose sensor (i.e takes a smalldrop of fluid and gives an numeric readout in seconds without any additional operations), but for almost anyphysiological analyte. There are several drugs where it is important that a patient has neither too little nor too muchdrug 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 weeklyuntil it is correctly dosed. Molecular Warehouse will allow patients to measure this themselves with high accuracy andcommunicate back to the doctors. Its first products are aimed at the transplant market and will allow accuratemonitoring of drug levels outside a hospital environment (or in one but more effectively). For the development of newsensors Molecular Warehouse makes use of the services of the University of Queensland Brisbane where a largenumber of proprietary and commercial tools are brought together in one location allowing very rapid development ofnew 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 byLindy Murphy, who has 20 years of experience in the field. One of the theoretical benefits of the Molecular Warehousedesign is that it can provide very large currents from the electrodes making measurement easier. So far the results arein line with expectations i.e. very good.

The Australian research group has developed an even better design of the linking molecule which enables very highsensitivity measurements. We can’t disclose details but it further broadens the applications the Molecular Warehousewill 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 nowalmost complete and work on the grant can start. A small round was raised in March to match the funds from InnovateUK.

Should you be aware of any companies with an interesting diagnostic that might benefit from more rapid and robustmeasurement, please let us know.

Summary

Molecular Warehouse has successfully established an electrochemistry and measurements lab. The technical resultsare good. The company is hoping to sign the first commercial diagnostic development contracts and will be working ontwo major grants.

Molecular Warehouse

£75,000 SEIS29/06/2015




www.animal-dynamics.com


Dr Adrian Thomas is Professor of Biomechanics at Oxford University where he founded the Animal Flightresearch group in Zoology. He is an expert on how animals and insects move through water and air and onland. Unsurprisingly, over millions of years, they have evolved very efficient means of doing this. So thepurpose of the new company, Animal Dynamics, a spin-out from Oxford University is to adapt the techniquesand structures used by animals and insects to create more efficient and effective means of flying and movingthrough the water and over land. Alex Caccia, an entrepreneur with start-up experience in media, technologyand manufacturing and a background in finance and investment banking, has been working with Adrian todevelop 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 worldspeed record for such craft. Prototype 1 of this craft was assembled during November, and provided manyuseful lessons. Some progress was made during Q1, but the start of the 2016 Formula 1 season, meant thatall the companies who make the best carbon fibre foils were fully engaged. It is hoped to conduct the firsttrials during Q2.

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 progresshas been made in Q1. Phase 1 of this project is scheduled to finish at the end of Q2 and, all being well, will befollowed by phase 2, starting in Q3.

Animal Dynamics

£50,000£30,000

SEISSEIS

13/07/201514/12/2015



Date Amount TypeShare Price£0.14£0.18 www.ducentisbio.com

Description of the Business

Ducentis was set up by Dr. Phil Huxley and Dr. Rebecca Ashfield, very experienced drug development and proteinengineering experts together with Prof. Dr David Blackburn. Ducentis has identified that a naturally occurring proteinhas important immunoregulatory functions and could be useful in the treatment of chronic immune diseases such asarthritis. To be useful it requires better drug like properties so that it could be taken at longer intervals and smallerdoses. The company will modify the protein in such a way as to achieve the improved performance. The developmentwill go through the stages of in vitro testing, cellular testing and then in-vivo testing. Once the fundamentaldevelopments have been made, the company will be seeking partners in this very important field (2 of the top 4 drugsin the world are aimed at this class of disease)

Until patent filing is complete, we cannot say any more about the molecule or the processes being used to conferimproved in vivo properties.

We can now say that the modifications made to the protein result in a 10 to 100 fold increase in effect in the in vitrotests compared to the wild-type (i.e. naturally occurring) protein. This more than matches the original expectationsand Ducentis is currently preparing for the next stage of development.

Ducentis Biotherapeutics

£80,000£40,000

SEISSEIS

13/08/201508/03/2016




£1 www.bioarchitech.com

Description of the business

During the last century there have been sporadic reports of cancer remission following a virus infection. Researchershave investigated whether naturally-occurring viruses could be engineered to specifically target and destroy tumourcells. Much progress has been made and several such oncolytic viruses have entered clinical trials. However, theirefficacy is hampered by their limited tumour-specific replication, and the immune system which has co-evolved to limitthe infectivity and virulence of viruses.

Bioarchitech is a new company which plans to address these fundamental problems directly by manufacturing a newgeneration of chimeric viruses with improved therapeutic amplification at the tumour site, and the ability to survive inthe body's circulation to target tumour metastases, which are the main cause of morbidity and mortality.

The company was founded by Dr Geoff Hale who has an international reputation in therapeutic immunology. As ascientist, he has published over 300 articles on the mechanisms of action of antibodies. He was formerly head of theTherapeutic Antibody Centre at Oxford University, and was the founder and CEO of Bioanalab Ltd, a successful spin-outfrom Oxford which grew from nothing to c 200 people.

Kevin Maskell is the principal researcher. From 2002 - 2009 he was a research assistant in the department of clinicalpharmacology at Oxford University. From 2009 - 2013 he worked for DDS, a subsidiary of Merck Millipore ending asprincipal scientific director. From 2013 until joining Bioarchitech in 2015, he was the senior scientist at Oxford CancerBiomarkers.

Progress since the investment

The company moved into labs at Upper Heyford, about 20 miles north of Oxford. A patent application covering the keyaspects of the idea/invention has been prepared. Work has started in the lab on preparing the virus. This virus needsto be able to evade the body's immune system and to target tumour cells. Easy to say, but hard to achieve. But theprize, if this is successful, could be very large.

The company has progressed along the development path way and at the beginning of April has started the mostcritical experiments (so far).

Bioarchitech

£100,000 SEIS27/11/2015




www.orbitdiscovery.com


Peptides are short chains of amino acids (the building blocks of proteins). They are an increasingly popular class ofpharmaceuticals, sitting in between conventional small molecules and biologics such as antibodies and proteins. Theycan be made chemically like small molecules, but can be very specific like the biologics. The technology behind Orbitcomes from Oxford University's Wetherall Institute of Molecular Medicine. It enables the rapid selection of peptidesthat 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 overslides with the target molecule. The beads that bind can then be identified and larger quantities produced. If necessarynew beads can be made which are similar to those that bind best - an evolutionary approach. The technology hasalready been demonstrated 3 times to identify peptides that bind as well as existing drugs or peptides in just one singlestep.

The company will partner with large pharmaceutical companies wishing to develop new peptide drugs but will alsodevelop its own portfolio. It is hoped the technology works rapidly enough to enable tens of drug discoveryprogrammes to be run each year.

The company is being run by Alex Batchelor who has a strong background in drug development with support fromfounders Prof Graham Ogg and Prof Terence Rabbitts FRS and former vice-chancellor Prof Andy Hamilton.

Recent Developments

The Orbit lab is housed at Oxford Brookes and opened on the first of March.

Orbit has employed the first two members of staff one of whom had previous experience in the lab where thetechnology was first developed. They have set up its lab and have started verifying all the underlying techniques.Discussions are taking place with potential partners, there seems to be strong interest from industry.

Summary

Orbit recruited its operating staff at the beginning of March and so far everything is proceeding to plan.

Orbit Discovery

£75,000 SEIS07/03/2016




www.curileum.com


Organoids are microscopic three-dimensional cellular structures that mimic some of the structure and function of realorgans. They have therefore become an increasingly popular tool for researchers who have previously been confined toworking 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 anddevelopment to the field of gastrointestinal (GI) disease. Jeff has previously founded two drug development companiesbut most recently ran the Novel Therapies division of Epistem where his work entailed identifying and validating newintestinal stem cell targets. Curileum Discovery will use gastrointestinal organoids, effectively microscopic guts, toidentify 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 theteam 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 hopefullyfacilitate close collaboration in the future.

Curileum Discovery

£37,500 SEIS01/04/2016



Date Amount TypeShare Price£1


TMC Applications is the brainchild of Don Clark, a very successful financial products retailer, Derek Taylor, a financialmarkets and forex specialist, and Martin Taylor, a software solutions expert. The company is developing a smartphoneapp, website, database and related interfaces to allow it to deliver an innovative new finance product that they believewill take the retail finance market by storm. The details of the product are being kept under wraps for commercialreasons, 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 in2015. Everyone made an excellent financial return. Having had an idea for another start-up, Martin asked us whetherwe would like to invest.)

TMC Applications

£100,000 SEIS04/04/2016




www.poiesistherapeutics.com


Poïesis* Therapeutics was set up by Dr. Jessica Dugan and Richard Keatinge, respectively a veterinary doctor with anMBA specializing in horses and an M&A specialist from the pharmaceutical industry.

When Dr. Dugan’s dog became ill she was really struck by the huge gap between medicines and diagnostics availablefor humans and for pets. Considering that all drugs are extensively tested on animals for efficacy and safety on animalsbefore being used in clinical trials for humans, it seems wrong that many drugs are not translated to animal use.

Poïesis is working with companies that have drugs in, or about to enter, clinical trials and taking those drugs down aparallel, but much shorter route to the veterinary market. They provide the original drug developers the datagenerated in the additional animal trials required for veterinary registration and some royalties, these coming muchsooner than they will in the human sector. In the lead up to this investment we have found that the interest frombiotechs to collaborate is very great as they quite rightly see little down side and much benefit from a sector in whichthey were not going to be active and have no experience.

The fund-raising will enable Poïesis to start (and finish) the first development programme, but the ambition is muchgreater.

*Poïesis (Ancient Greek: ποίησις) “an action that transforms and continues the world.”

Poïesis Therapeutics

£50,000 SEIS05/04/2016




www.activeneedle.com


When doctors use long needles to take biopsies or to make deep injections, they have two main problems.

1) The needles are difficult to see on ultrasound.2) 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, thesolutions are not optimal, making the needle less comfortable to use and still only barely visible, especially if the anglebetween the needle and the ultrasound is small.

ANT’s active needle technology provides longitudinal movement to the needle, this results in the needle being verybright on the ultrasound (from all directions) and the needle deflects much less. The ultrasound drive also has anadditional benefit in that the amount of force required to insert the needle is much reduced. This should result in lesspain upon insertion and less risk of overshoot – which is the situation where the needle has difficulty piercing the skinor 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 problemsfor 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 theextra cost of the ultrasound driver will only have a small impact on the gross margin. The alternative products (withoutultrasounds advantages) cost ~$200.

The technology was invented and initially developed by Muhammad Sadiq at Dundee University. The company will beheaded up by Ian Quirk who has been a regulatory and clinical development specialist for over 20 years, most recentlyat 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 thefollowing year.

Active Needle Technology

Documents

Oxford Technology Combined SEIS and EIS Fund · Invested Date SEIS/EIS Net Cost Fair Value Multiple* Method of Valuation Business Sasets Latest Share Price £75,000 30/07/2014 SEIS