New figures launched by HRMC present a 39% year-on-year enhance in EIS funding in 2021/22, with complete funding by the scheme reaching £2.3 billion – the best because the scheme started.
The scheme, which brings collectively personal buyers with corporations that want funds to scale up operations, supported 4,480 corporations within the 12 months, a 19% enhance on 2020/21.
Cash invested by the Seed Enterprise Funding Scheme (SEIS), which invests in earlier stage start-ups, rose 16%, rising to a file £205 million, unfold throughout 2,270 corporations (one other file). Of those, 80% have been elevating cash for the primary time and corporations registered in London and the Southeast accounted for 67% of all of the SEIS funding.
For the reason that Enterprise Funding Scheme launched in 1994, 36,145 particular person corporations have acquired funding and round £27.9 billion of funds have been raised in complete. Whereas, 17,335 corporations have raised £1.7 billion underneath SEIS since its launch in 2012/13.
The variety of buyers claiming EIS aid rose 15.7% to 45,155, whereas 9,950 buyers claimed SEIS aid, up 4.8%. Throughout each EIS and SEIS, over half of buyers invested lower than £10,000.
Alex Davies, CEO and founding father of Wealth Membership, feedback:
“2021/22 was a file 12 months for EIS and SEIS funding and reveals that investing in early-stage companies is changing into more and more mainstream for wealthier and extra subtle buyers, attracted by beneficiant tax incentives and the potential to put money into the subsequent huge factor.
“That is nice information for the British economic system. Begin-ups and scale-ups create a disproportionate quantity of jobs and financial development, and file funding into them might assist us out of our present financial malaise.
“That stated, we shouldn’t be resting on our laurels. These figures are one 12 months behind, and the fundraising local weather was a lot more durable in 2022/23 so it’s unlikely these figures will likely be matched subsequent 12 months. Arguably at this time, the EIS and SEIS schemes make Britain the most effective locations to arrange a enterprise. This authorities and future governments have to chorus from tinkering. The principle purpose individuals are funding all these start-ups is tax aid. Mess with it, scale back it and so they received’t.”