In This Issue…

by Alexander Kalis Managing Partner & Head of Investments at Milltrust International


Cerracap II is now on the verge of launching on the Cayman Islands domiciled Milltrust International Investments SPC platform. The fund provides international investor access to a fund managed by a Californian-headquartered firm operating out of the innovation hubs around the globe, providing early-stage investment access to Enterprise solutions in the Cyber Security, Analytics, and Healthcare Technology areas.

According to the market research report on “Artificial Intelligence in Security Market by Offering (Hardware, Software, Service), Technology (Machine Learning, Context Awareness, NLP), Deployment Type, Security Type, Security Solution, End-User, and Geography – Global Forecast to 2025”, published by Markets and Markets™, the AI market is expected to be valued at USD 3.92 Billion in 2017 and is likely to reach USD 34.81 Billion by 2025, at a CAGR of 31.38% during the forecast period. High usage of the Internet and the constant need for employees to be online are contributing to the growth of this market. Another major factor driving the demand for AI-based security solutions is the shortage of cybersecurity professionals. Using AI-based solutions for cybersecurity covers much of the need for cybersecurity professionals.

Cerracap’s investment in Deep Instinct offers a ground-breaking solution to these types of cybersecurity issues. Deep Instinct’s D-Brain prediction model neither uses signatures, heuristics, behavioral analysis and sandboxing, nor requires threat intelligence feeds, connectivity, manual analysis for classification, wait for execution of attack and frequent updates. Rather, harnessing Deep Learning, Deep Instinct is gearing up to create a paradigm shift in endpoint security. Instead of solutions requiring high domain expertise and constant updates, neural networks now enable highly predictive capabilities that stop even unknown threats with minimal human intervention.

Along with our affiliates at EICM in Singapore, Milltrust is also launching the ZPX Tech Titans Fund, a Cayman SPV set up in conjunction with a number of former alumni of Founders’ Fund in the US who have given us capacity in some of the biggest unicorns ever, with listings slated over the course of the next 36 months. The Fund includes exclusive access to shares in SpaceX, Palentir, Lyft and AirBnB which, up until now, have not been available to private investors.

As Reuters reports, while much of the stock market’s recent boom resided in the FAANG acronym, for Facebook, Apple, Amazon, Netflix and Google, aka Alphabet, as important as they’ve become, investors tired of this trade can look forward to 2018 to a new set of letters to jumble into a more exciting investment thesis. Call it SLAW. Four of the most highly valued private companies – Spotify, Lyft, Airbnb and WeWork – are in various stages of preparing to go public. SLAW are uniquely disruptive enterprises whose success, or failure, may determine the future of cities, mobility, work and fun.

Finally, we are pleased to read Jim Wilkinson, chief financial officer of Oxford Sciences Innovation, the university venture fund of University of Oxford and a core investment in the British Innovation Fund, saying: “Oxford Sciences Innovation has continued to attract investment and now has funds in excess of £600m.  “2017 saw the first series A investments, with Diffblue and Vaccitech the two most significant. The number of investments in the portfolio has continued to expand from 28 to 46. It is expected that 2018 will continue to see an increase in the portfolio and the further development of existing companies primarily through series A investments.”


In the healthcare space, our investment in pioneering diagnostics company through the British Innovation Fund has continued to make significant advancements. It has launched a new, simple-to-use, POC blood testing device that can perform simultaneous testing over 7 blood biomarkers from a pin-prick of blood in 5 minutes. The technology is deployed through a disposable chip that can be slotted into a handheld device docked onto an iPhone, and is suitable for both the healthcare professionals and the consumer markets. The technology is supported by a portfolio of patents which was a spin-out company from the University of Exeter. The Company will launch testing with the health professionals market in 2018, and launch its technology in the consumer markets thereafter.

The firm is now looking to secure £7.5M of Series B funding – Milltrust’s British Innovation Fund has committed £2.5M to this round. The company will address a UK market opportunity of £5bn, scalable to Asia and the rest of the world. Please contact us for further information on this opportunity


Supporting our MAI Buy & Lease Australia Fund‘s investment in Cottrell, a citrus farm located in the north-west of the state of Victoria in Australia, Fruitnet reports that Australian citrus suppliers don’t have to wait for the final figures to declare 2017 their best season on record. More than 221,000 tonnes of fruit had been exported at the end of September, generating some A$377m in sales. Given that citrus exports for the entire 2016 season were 220,000 tonnes at A$328.4m, it has already been another record breaking campaign in the export arena, and it’s not done yet.

In New Zealand, where Milltrust operates a MAI Buy & Lease New Zealand Fund, the government has raised the bar for overseas investments in sensitive land, with a new and much broader, rural land directive which applies to all rural land larger than five hectares other than forestry. This new directive is aimed to ensure authorized purchases will provide genuine benefits.

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