Britain’s Small Businesses Raise £1.46bn in EIS Funding
Government tax-relief investment initiative saw a 90% increase in uptake in 2014 with over £163m secured by UK start-ups via SEIS
Small and medium enterprises raised over £1.46bn through the government-backed Enterprise Investment Scheme (EIS) in 2014 – an increase of 41% on last year – its highest level yet.
According to the report by Radius Equity, the government’s Seed Enterprise Investment Scheme (SEIS) experienced an even bigger increase in uptake with funding through the tax-relief initiative increasing by 90% to £163m in funding – almost double the £85.9m EIS investment secured in 2012 to 2013.
Findings from HMRC also revealed that the number of companies raising finance through SEIS rose by 73% to 1,695 – of which 1,695 firms raised funds for the first time via the initiative.
The number of enterprises using EIS also witnessed a boost, increasing by 10% from 2,465 in 2013 to 2,710 in 2014.
Radius Equity director, Gary Robins, said of the research:
“EIS and SEIS are proving increasingly popular among investors, as they are now just two of the few government endorsed investment schemes with generous tax breaks.
“EIS is doing what so many other initiatives have failed to do – get increased funding to small and medium enterprises, a vital part of the economy that has seen its funding through bank loans fall dramatically and continuously since the credit crunch.”