Number of tech businesses raising EIS funds has jumped 27%
Enthusiasm for fintech and app start-ups is growing amongst investors, according to new research from Radius Equity
The number of UK technology businesses seeking funds under the Enterprise Investment Scheme (EIS) has risen 27% in the last year – up from 510 in 2013 to 650 in 2014 – research from private equity firm Radius Equity has revealed.
The firm reports that technology companies made up the largest proportion of the 2,370 businesses which used the tax-efficient scheme last year; with investors now showing more enthusiasm for financial technology (fintech) and app-based start-ups.
Changes to EIS in 2012 mean that companies with up to 250 employees and gross assets of up to £15m are eligible to receive investment through the scheme.
Discussing the findings, Gary Robins, director Radius Equity, said: “These figures show that EIS is playing an increasingly vital role in supporting the UK’s booming tech sector.
“EIS-eligibility is a big draw to help ambitious tech entrepreneurs attract investors, and is often a deal-clincher for investors looking for high quality investment opportunities in start-ups and fast growing tech companies.”