2fnoNyY

Recommendations

Info

FROM SMALL ACORNS MIGHTY OAKS GROW: WHY SEIS MATTERS Matthew Cushen, Co-founder of Worth Capital, looks at the rise of SEIS and the returns on offer Equity investing in early stage start-up businesses is becoming an increasingly common component of a diversified portfolio. The generous tax reliefs available from the Seed Enterprise Investment Scheme (SEIS) are the most oft quoted benefit of seed investing. But this is only one part of the equation. There is also emerging data to illustrate a healthy return on investment and unlike many financial products, this is one that clients get excited about - following the fortunes of ‘their’ startups and sharing stories about investing in real businesses. The big picture The normal rules of business have changed and it’s nimble entrepreneurs that are challenging the old order and being the catalyst for our disruptive age. It’s start-ups that are creating new consumer behaviours and leading a recovering economy. 28 EIS Yearbook 2016/17
Thought Leadership Start-ups are usually unencumbered by the deeply entrenched thinking and bureaucratic shackles that stifle large businesses. They have recently started to enjoy some of the advantages that used to only come with scale, for example: • The cost of entry for a start-up is rapidly decreasing – a retailer can create an online shop window for almost nothing, and an app can be built for less than £5,000. • Social media allows a new entrepreneur to interact with their consumer, grow a brand and make it personal and relevant to a precise audience, all at low cost. • Entrepreneurs now can think globally from day one – selling in multiple markets and sourcing from multiple markets. 50% growth are created by ‘high growth small businesses’ that make up less than 1% of UK businesses and make up less than 3% of the UK economy. This growth is not just the preserve of London and the South East. It is creating opportunities across the UK – with nearly three in five of these growth businesses based beyond London and the South East, with 70% of turnover being out of London. These are just some reasons that the UK government has been supportive of small business and start-ups. One of Theresa May’s earliest speeches on becoming Prime Minster was to emphasise her government’s commitment to supporting and listening to smaller businesses. Part of the government’s support, for the last couple of decades, has been to create tax incentives for investors that support early stage seed investing. “I want to build an economy that works for all, and that means working with, and listening to, smaller firms.” Theresa May, Prime Minister Expected returns on investments made since January 2012. 0% 20x Large businesses now routinely buy start-ups as a preferred route to get hold of new technology, products and services. Whilst we might immediately think of Google’s venture arm, many older ‘legacy’ businesses, such as Kelloggs, Campbells and Amex, also now have venture funds. One of the most active businesses is Unilever and in the last few months their deals have ranged from putting in £500,000 alongside a crowdfunding round for the on-demand beauty service Blow, to spending $1 billion buying out Dollar Shave Club. Driving growth The need for fast growing start-ups to contribute to the overall health of our UK economy is heightened by Brexit created uncertainty. The Octopus High Growth Small Business Report 2015 finds that one in three new jobs and 20% of economic The Seed Enterprise Investment Scheme The EIS was set up in 1994 and continued to be supported through Labour governments. It has since been made more attractive by the Conservative government, and has established itself as a part of tax legislation that neither of the main parties would be likely to compromise. SEIS, established in 2012, is an extension of EIS and offers even more generous reliefs as an incentive for investors in very early stage businesses. In the 2014/15 tax year, 2,185 companies raised £168 million through SEIS, growth from 1,995 companies and £148 million in funding in 2013/14. But it can’t be a growing source of funding without a growing and enthusiastic body of investors. SEIS is becoming an established part of a sophisticated EIS Yearbook 2016/17 29
Page 1 and 2: FOR PROFESSIONAL INVESTMENT ADVISER
Page 3 and 4: CONTENTS CHAPTER • 1 Foreword Mar
Page 5 and 6: The Blackfinch Asset Focused EIS Po
Page 7 and 8: LOOKING BEYOND BREXIT Welcome to EI
Page 9 and 10: THOUGHT LEADERSHIP
Page 11 and 12: Thought Leadership The summer of 20
Page 13 and 14: Thought Leadership Let’s not be s
Page 15 and 16: Thought Leadership In fact, much of
Page 17 and 18: Thought Leadership RISK EQUALS REWA
Page 19 and 20: Thought Leadership budget and appet
Page 21 and 22: Thought Leadership to see taxes for
Page 23 and 24: Full service creative agency As spe
Page 25 and 26: Thought Leadership The more you kno
Page 27: Thought Leadership investing larger
Page 31 and 32: Thought Leadership Considerations f
Page 33 and 34: Thought Leadership crowdfunding pla
Page 35 and 36: Thought Leadership A valuable addit
Page 37 and 38: INVESTMENT SPOTLIGHT
Page 39 and 40: Investment Spotlight A BIRD’S EYE
Page 41: Investment Spotlight ACTION! UK FIL
Page 44 and 45: Make It Your Business Toil. Hard gr
Page 46 and 47: Helping you support your clients’
Page 49 and 50: Investment Spotlight INVESTING IN T
Page 51 and 52: Investment Spotlight THE INSIDE TRA
Page 53 and 54: Investment Spotlight DISRUPTING THE
Page 55 and 56: Investment Spotlight DIVERSIFICATIO
Page 57 and 58: Investment Spotlight GROWING THROUG
Page 59 and 60: ENHANCED PROFILES
Page 61 and 62: Enhanced Profiles USPs • Reputati
Page 63 and 64: Enhanced Profiles USPs • Over 20
Page 65 and 66: Enhanced Profiles USPs • Two spec
Page 67 and 68: Enhanced Profiles INVESTMENT STRATE
Page 69 and 70: Enhanced Profiles USPs • A ‘com
Page 71 and 72: Enhanced Profiles USPs • Sector e
Page 73 and 74: Enhanced Profiles USPs • Hands-on
Page 75 and 76: Directory ACCELERIS CAPITAL Norman
Page 77 and 78: Directory DAEDALUS PARTNERS LLP Gav
Page 79 and 80:
Directory JOULE ASSETS EUROPE Jessi
Page 81 and 82:
Directory SENECA Jack Rose, LGBR Ca
Page 83 and 84:
INFORMATION MEMORANDUM For further
Page 85 and 86:
Open Offers EIS Open December 2015
Page 87 and 88:
Open Offers Open 05/09/2016 Minimum
Page 89 and 90:
Open Offers EIS Open 06/09/2016 Clo
Page 91 and 92:
Open Offers SEIS Open 17/01/2014 Cl
Page 93 and 94:
Open Offers IHT Open October 2014 C
Page 96:
IFAMAGAZINE.COM EISMAGAZINE.COM FAN
show all

2fnoNyY

Create successful ePaper yourself

Delete template?

Save as template?