UK start-ups secured over £163m SEIS funding in 2014
Government initiative saw a 90% increase in uptake last year while amount raised through EIS hit £1.46bn
The amount of funding raised by UK start-ups via the government-backed Seed Enterprise Investment Scheme (SEIS) topped £163m last year; almost double the £85.9m raised by business owners in 2012 to 2013.
Highlighted in new research by Radius Equity, the findings also show that the government’s Enterprise Investment Scheme (EIS) has reached its highest level with £1.46bn raised through the tax-relief initiative in 2014; an increase of 41%.
According to figures from HMRC, the number of businesses raising funds from private investors through EIS has also increased, up 10%, from 2,465 in 2013 to 2,710 last year.
SEIS has seen a similar boost with 1,996 businesses having raised funds through the initiative in 2014, an increase of 73%. Whats more 1,695 businesses raised funds through the SEIS for the first time in 2014.
Gary Robins, director at Radius Equity, said of the figures: “EIS and SEIS are proving increasingly popular among investors, as they are now just two of the few government endorsed investment schemes with generous tax breaks.
“EIS is doing what so many other initiatives have failed to do – get increased funding to small and medium enterprises, a vital part of the economy that has seen its funding through bank loans fall dramatically and continuously since the credit crunch.”