The Enterprise Investment Scheme Association (EISA), the official trade body for the Enterprise Investment Scheme (EIS), representing entrepreneurs, advisors and investors, has welcomed the report from the All Party Parliamentary Group (APPG) for entrepreneurship on Funding to Flourish: The Case For Tax Relief on Early Stage Investment.
The EISA contributed to the paper’s call for evidence and highlighted both the criticality of the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS), and the importance of confirming the future of the EIS beyond the 2025 sunset clause in driving innovation and entrepreneurship in the UK.
One of the report’s key recommendations was that the government should provide clarity about the future of the SEIS, EIS and VCT schemes and tweak them to reflect the size of the modern startup ecosystem.
Commenting on the report, Christiana Stewart-Lockhart, director general of the EISA, said, “We welcome this important report, which clearly illustrates how vital the EIS and SEIS are to innovation, job creation and economic growth in the UK. We now look to the Government for greater clarity regarding the future of the EIS beyond the 2025 sunset clause to provide entrepreneurs with some much-needed security.”
Many entrepreneurs have shared their support for the report and have emphasised the importance of the schemes:
Timothy Antis, CEO and co-founder of Kokoon Technology said, “We would not exist without EIS tax incentives. It’s one of the best things the government ever did for the UK economy.”
“Without SEIS, our company would have folded 18 months ago. Since then, we’ve gone on to grow and raised […] $25m, keeping skilled tech jobs in the UK,” commented Edward Clayton, CTO of Devyce.
Deirdre McGettrick, founder and CEO of ufurnish.com, notes that, “I have found EIS to be particularly valuable as a female entrepreneur, as institutional funds are less readily deploying capital to female founders in the early stages of business.”
CEO of Inovus Medical, Elliot Street remarks, “These schemes are the lifeblood of startup growth in the UK, it’s critical they are extended and expanded in their scope.”
“My company,” observes CEO of Dashel Helmets, Catherine Bedford, “which manufactures solely in the UK, in areas of economic deprivation, has only managed to raise funding due to the SEIS and EIS schemes. The schemes are crucial to the survival of viable startups.”
Peter Roberts, chairman of Gymfinity Kids, said, “Before EIS and VCT, it was almost impossible to raise funds for early-stage investments. Since their introduction, it has completely changed the economics of making investments into young ambitious companies and, as a result, I see probably five times the opportunities than I did before these incentives, and it allows them the chance to raise equity and not have to go into debt, which is so risky and expensive, as we have seen in the last nine months.”
“This support is vital as there is an entire ecosystem, which has developed to support amazing innovations for the future of the UK economy. It is part of the UK’s whole process, from education and training, to innovation and investment and on to international trade and GDP. To dismantle this would set us back decades,” notes Paul Gaudin, chairman of The CareRooms.
Founder of Indicium Ventures Simon Thethi thinks that, “The SEIS investment scheme plays a crucial role in supporting the growth and innovation of the United Kingdom’s tech industry by providing tax incentives for early-stage investors to back promising startups. With the UK tech industry rapidly evolving and competing on a global scale, the SEIS investment scheme is a vital tool in ensuring that innovative startups can thrive and contribute to the success and future of the ecosystem, now valued over £1 trillion.”
