SME private investments to reach record high

The Government’s Enterprise Investment Scheme (EIS) has helped private investments in SMEs to reach a record high, according to a study from Salisbury House Wealth.

The study found that SMEs received £1.8 billion from private investments through the scheme in the last year, an increase of 14 per cent from £1.6 billion on the previous year.

Increase

The EIS scheme has helped small businesses that are looking for funding and has provided more opportunities for private investors.

Through the scheme, investors are offered a range of tax reliefs when they purchase new shares in small businesses that are looking to raise finance.

The study showed a 36 per cent increase in the number of tech companies that have received private investments through the scheme since 2012/2013.

Funding for tech companies reached £349 million in 2014/2015, up from £197 million in 2012/2013, and companies now receive 19 per cent of the total funds that are raised through the scheme.

Opportunities

Salisbury House Managing Director Tim Holmes commented: “As interest in tech start-ups and fintech companies in particular grows across the economy, private investors are increasingly looking for opportunities to capitalise on this growing market.”

He added: “In the UK established tech companies that offer opportunities for investments are few and far between – so many investors look to get in on the ground floor.”

Holmes stated that the increase in private investment through the EIS scheme is really good news for SMEs that are looking for help in expanding, and is a positive driving force for the UK’s entrepreneurial culture as a whole.