EIS investment reached a record £2bn in 2018, but it’s not just the tax breaks that are attracting investors says Mark Brownridge,
director-general of the Enterprise Investment Scheme Association.
It’s the excitement of investing in start-ups as well, he told Proactive.
Tech companies accounted for 65% of the money across AI, cyber security, and data with a similar proportion of new companies starting up.
Changes to the type of company that can attract EIS status might mean it is hard to match last year inflows in the current year, but Brownridge believes once investors understand the new risk profile they will be back.
“The scheme is aimed at smaller start -ups and that’s where it is most effective.”