Investments into EIS qualifying companies dramatically fell to £1.6 billion in the 2023/24 tax year, marking a 20% decrease year-on-year. Conversely, investments into SEIS qualifying companies surged to £242 million, reflecting a 51% increase due to enhanced funding limits. While Venture Capital Trusts (VCTs) also saw a decline of 17%, experts recognize these schemes remain crucial for UK start-ups amid shrinking overall private investment. Changes in SEIS have bolstered its effectiveness, showcasing the positive impact of thoughtful government support for innovative businesses looking for capital.
These numbers cover a tough period for the UK venture capital industry - with the two main venture capital investment schemes, VCTs and EIS, showing large declines in funds raised.
However, the schemes continue to be a vital source of funding for UK start-ups. That's especially true when other sources of funding dry up.
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