Jumpstart secures £3.4m from Business Growth Fund to support companies with R&D tax relief
Tax credit assistance firm marks BGF’s 10th Scottish investment
Edinburgh-based tax credit company Jumpstart has closed £3.4m growth capital from the Business Growth Fund (BGF), the equity firm’s 10th investment north of the border.
Founded in 2008, Jumpstart works with British businesses to help them make successful HMRC Research and Development (R&D) tax relief claims by “guiding” them through the application process.
Since its launch it has supported over 500 companies from across the UK and says its current order book exceeds £10m.
It plans to use the funding to grow its in-house sale team, marketing and delivery functions, in order to extend its reach.
The investment will also go towards strengthening its management team, having recently appointed marketing expert Jim Faulds as Chairman and former UK senior accountancy partner of Mazars, David Evans, to its board.
BGF has taken a minority stake in Jumpstart and one of its senior investment managers, Patrick Graham, has also joined the board.
Brian Williamson, managing director of Jumpstart, commented: “Jumpstart has enjoyed remarkable growth since it was formed with no bank support and little more than a good idea.
“In less than five years we have gone from two men in an attic flat to a five floor prime property in the heart of central Edinburgh occupied by almost 50 staff and with a further 50 used on a part-time basis.
“This investment from BGF will allow us to rapidly increase the recruitment of senior staff to cater for the increased demand from current and prospective clients. The BGF team have truly immersed themselves in our business and understand the crucial role R&D Tax Relief can have in expanding the UK economy.”
Patrick Graham, BGF’s senior investment manager, said: “We have been very impressed with what Jumpstart and the team has achieved to date.
“With around 10,000 small and medium sized enterprises and 2,500 large companies currently claiming more than £1.1bn in R&D Tax Relief each year in the UK, we believe that there is a large opportunity for the business to grow.”