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 start-up 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. One of the best things the government ever did for the UK economy.”
Edward Clayton, CTO of Devyce said: “Without SEIS our company would have folded 18 months ago. Since then we’ve gone on to grow and raised at a cap of $25m, keeping skilled tech jobs in the UK.”
Deirdre McGettrick, Founder & CEO of ufurnish.com said: “I have found EIS to be particularly valuable as a female entrepreneur where institutional funds are less readily deploying capital to female founders in the early stages of business.”
Elliot Street, CEO of Inovus Medical said: “These schemes are the lifeblood of startup growth in the UK, it’s critical they are extended and expanded in their scope.”
Catherine Bedford, CEO of Dashel Helmets said: “My company 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 start ups.”
Peter Roberts, Chairman of Gymfinity Kids said: “Pre 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 5x the opportunities than I did pre these incentives and it allows them the chance to raise equity and not having to go for debt which is so risky and expensive as we have seen in the last 9 months.”
Paul Gaudin, Chairman of The CareRooms said: “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.”
Simon Thethi, Founder of Indicium Ventures said: “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 £trillion”