UK small businesses raised record £1.5bn EIS funding last year
2,770 small firms have secured investment through the government's tax relief scheme for the year so far...
Small businesses secured £1.53bn through the Enterprise Investment Scheme (EIS) across 2013 to 2014 – a 48% increase on 2012 to 2013 – Radius Equity reports.
New research by the firm suggests that the number of small firms using the government tax incentive scheme has hit the highest levels in 15 years with 2,770 small and medium enterprises having raised EIS funds to the year to date; 12% more than last year.
The number of start-ups raising investment through the Seed Enterprise Investment Scheme (SEIS) has also risen markedly.
2,030 start-ups raised money through the SEIS scheme last year, a 75% increase on 1,160 companies in the previous year. The total amount raised jumped 93% to £166m from £86.1m the year before.
Radius Equity has stated that the rising popularity of EIS is helping to provide investment for UK small firms at a time when many are struggling to secure traditional bank lending. Director Gary Robins commented:
“EIS is becoming an increasingly valuable source of capital, especially as bank lending can still be difficult to secure.
“This capital raising is important to ensure small and medium enterprises continue to be a strong engine for economic growth in the UK. They employ a huge number of people while stimulating local and regional economic development.”