Since its introduction in 1994, the Enterprise Investment Scheme (EIS) has become a key facilitator of private capital investment into Britain’s rising SMEs. Last week, it was revealed that small businesses in the UK successfully secured £1.53 billion throughEIS across 2013 to 2014. Representing a 48% increase on the previous year’s figures, EIS continues to be a valuable source of capital for SMEs that find it difficult to secure funding via traditional finance platforms. This remarkable increase in funds attained through EIS is testament to the UK’s leading position as a global hub of entrepreneurial attitudes and innovation.
The provision of capital from high-net worth investors to UK SMEs will remain fundamental for high-growth sectors and disruptive technologies. The recent Summer Budget and subsequent Finance Bill have reformed the EIS to help support new SMEs that have an operating history spanning less than seven years. Our latest report discusses the key changes. Further to this, a new report has named 58 rising technology SMEs that are likely to generate over £100 million in revenue in the next three to five years. This offers exciting opportunities for investors seeking to diversify their investment portfolio via non-traditional assets while supporting SMEs with huge growth potential. The online direct lending market in the UK is set to grow by around 85% this year. While still trailing behind the UK, online direct lending in continental Europe is also projected to increase by around 200% at the close of 2015.
The UK is leading the way in which tax incentive schemes can be implemented as both an investment strategy and supporter of domestic enterprise. With our proven experience in leading and managing investments through EIS, IW Capital is linking investors with some of the UK’s most exciting business ventures.