Among the advisers surveyed, 43% said the typical investment made into EIS in the last 12 months was £20,001 – £100,000, which in Perkins’ view demonstrates that the world of early stage venture capital investing is now not just the preserve of the super wealthy – something that can only be a good thing for the entrepreneurial engine of the UK economy. The survey further identified that the average number of clients IFAs had with current investments in EIS was 15%.
When asked if they agree a change of government would see greater support for investment into the UK’s growth companies, the majority of respondents (62%) disagreed, with only 8% believing that a change would be good and the balance remaining neutral.
Perkins added: “Advisers appear to be concerned about the future of tax efficient investing if there were to be a change in government. However, one could consider this concern to be unfounded, given that EIS has successfully contributed to the growth of the UK economy for the last 25 years and received broad cross-party support throughout that period.
“For every £1 invested in early stage VC, the statistics show that approximately £3.50 has been generated for UK PLC, with tax efficient investments being a significant contributor. It has also proved to be a valid form of alternative investment, bringing diversification to client portfolios and allowing the potential for some great returns.
