Enterprise Investment Schemes  

The rebirth of entrepreneurship

This is no longer a space dominated by four to five major players, but is a rapidly maturing industry, with a growing number of professional investment managers and advisers, as well as a strong ecosystem of tax advisers, regulatory consultants, custodians, experienced law firms, and so on.

The VCT and EIS space is now a core part of the UK’s innovation financing system, and there are a few trends that can help IFAs and wealth managers.

  • Later stage EIS investment opportunities: there is increased use of EIS funding for companies that are already established, with existing revenues and proven markets.
  • Greater diversity of products: there are many new EIS fund entrants that are focused on high-tech innovation-types of opportunities.
  • Ease of EIS administration: Expected improvements in HMRC response rates for EIS advanced assurance, increased digitisation of HMRC processes, and third-party reporting and allocation platforms are leading to increased digitisation and streamlining of the EIS process.

Ilian Iliev is managing director of EcoMachines Ventures