Axe Ali, EMEIA Financial Services Private Equity & Venture Capital Leader at EY, comments on changes to the eligibility criterial for high net worth or sophisticated investors:
“The reversal of the previously proposed change to the eligibility criteria of a high net worth or sophisticated investors – while somewhat unexpected – is positive news for new and growing UK businesses.
“The proposals sparked significant debate when announced in January, when concerns were raised that many of the individuals who would fail to meet the higher threshold would have been from minority backgrounds and female. In addition to minimising diversity, this change would have also meant many angel networks and investment syndicates would have lost viable investors, and would result in a critical part of the ecosystem that supports growing and scaling UK companies shrinking.
“Today’s decision to revert to the previous criteria will be welcome news for the industry following months of consultations, and reflects the Government’s continued focus on boosting investment in new and innovative UK companies.”
