Budget reaction: Strong steps to help start-ups but do not ignore the power of EIS

Schemes can be leveraged right now

When the pandemic first hit, the outlook for riskier, alternative asset investment opportunities looked bleak.

In times of crisis, it is often the way that individuals and businesses retreat into what they know, rather than taking a larger risk and investing in start-ups and businesses which are preparing to scale. Despite this, the 2020/2021 tax year was, in the end, a successful one for the Enterprise Investment Scheme (EIS), with fundraising from EIS Funds hitting over £380m. Beyond this, the pandemic created an appetite for early-stage technology businesses, which now make up the bulk of the EIS funds industry, as investor demand increased for businesses with technology at the heart of wha...