EIS Funding for UK Small Businesses Hit a Record £1.5bn Last Year
Almost 3,000 small companies raised investment through the government’s tax relief scheme last year with EIS funding up 48%
Britain’s small businesses secured a staggering £1.5bn through the Enterprise Investment Scheme (EIS) from 2013 to 2014 – up 48% from the year before – a new report from Radius Equity has found.
2,770 businesses raised funding through the government’s tax relief scheme, the highest number in 15 years and a 12% increase from the 2012 to 2013 figure.
The Seed Enterprise Investment Scheme (SEIS), which is focused on start-ups, also experienced an increase both in the number of numbers raising investment via the scheme and the investment raised.
The number of start-ups using SEIS went up by 75% to 2,030 in 2013 to 2014 and the amount of finance raised increased from £86.1m to £166m.
Radius Equity director, Gary Robins, commented:
“EIS is becoming an increasingly valuable source of capital, especially as bank lending can still be difficult to secure.
“This capital raising is important to ensure small and medium enterprises continue to be a strong engine for economic growth in the UK. They employ a huge number of people while stimulating local and regional economic development.”
For more information on the EIS, check out Startups.co.uk small business guide here.