Investor interest in the UK's Enterprise Investment Scheme (EIS) has significantly declined, with funds raised dropping to £1.6 billion for the year ending March 2024, a 20% decrease from the previous year. This decline contrasts with the Seed Enterprise Investment Scheme (SEIS), which saw a 25% increase in investments due to recent rule changes. EIS continues to capture significant funds, but concerns over investment concentration in London persist. Despite current challenges, industry leaders suggest potential recovery signals may emerge over the next year through realized investments and follow-on funding rounds.
Investor appetite for high-growth private companies via the EIS has fallen 20%, with funds raised dropping to £1.6 billion due to economic uncertainty.
The SEIS, in contrast, is experiencing growth with a 25% surge in participation, raising £242 million post-rule adjustments, attracting early-stage investors.
Christiana Stewart-Lockhart emphasized EIS's importance, noting it has channeled £34 billion into UK businesses and remains resilient despite recent drops.
Despite the challenges, the EIS still represents significant investment, with nearly 4,000 businesses benefiting, showing potential for a recovery.
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