S-EIS / EIS
The Seed Enterprise Investment Scheme (SEIS) offers great tax efficient benefits to investors, in return for investment in small and early stage start-up businesses in the UK.
SEIS was designed to boost economic growth in the UK by promoting new enterprise and entrepreneurship. Since it’s introduction in 2011, Seed Enterprise Investment Scheme has become a very popular vehicle for investors.
SEIS incentivises investors to place capital into the high-risk start-up sector. By offering a selection of generous tax breaks, SEIS allows investors to offset the risk associated with start-up investment, while also having involvement in a potentially successful new venture. All tax breaks become active three years from the initial investment.
Moving onto Enterprise Investment Scheme (EIS) – it is the sister investment scheme to SEIS – designed to attract investors in return for some favourable tax efficient benefits. SEIS is for start-up or early stage companies; whereas EIS is for established companies looking for growth and scaling up monies.
A quick comparison of both schemes. Investment in a business through EIS and SEIS is provided by UK tax-paying individuals. In return, they receive shares in the company in which they are investing. They are incentivised to provide finance through tax relief they receive on their investments, which is 30% for EIS and 50% for SEIS.
This means that an EIS investment of £100,000 costs the investor only £70,000 – and a SEIS investment of £100,000 only £50,000. Investors must have actually paid an equivalent amount of income tax in the current or previous year to receive it back in full via EIS or SEIS tax relief.
Consilium have access to over 50 Private Equity Houses who have specifically designed SEIS / EIS funds and look for investment opportunities. Our strength lies in having a clear understanding of what kind of companies these Private Equity Houses look for, and ensuring our clients are fully prepared and investor-ready when presented to them.
INDIAN CROSS BORDER EIS FUND
Consilium have direct access to an EIS Fund with one of their Directors sitting on the investment committee. This is a cross border EIS Fund that exclusively aims to help scale early stage UK based Technology driven businesses into the Indian market. This will enable these businesses to leverage the transformational digital revolution taking place in India.
The Fund will back UK based technology businesses at pre-Series A stage, with a ticket size starting from £500,000 to £750,000, as a co-investor in rounds that are between £1m and £3m.
- The Fund will invest in around 6-8 businesses a year
- All investee companies will have the potential to leverage their technology products and services to enter and scale in the fast-growing digital economy in India
- The investee companies will leverage their growth through the following themes:
- Significantly expanding middle class
- Young demographic
- Rising smartphone and internet penetration
- Financial Services reforms
- Significant urbanisation
- Digitization of Public services
The following Sectors are of particular interest;
- Software driving Logistic, Travel & Hospitality
- Security & Survelliance Applications
There a number of Private Family offices based out of London and other financial hubs around the world. A family office is normally operated by a wealth management advisory firm that serves the objectives of Ultra High Net Worth investors. There is often a mixture of services tailored to the mandate of the investor. From investment management to charitable giving advice, family offices offer a total financial solution to high net worth individuals.
EY estimates that there are currently 10,000 single-family offices, a ten-fold increase since 2008. Even more impressive is the sheer amount of wealth being managed by these firms. Research conducted by Dominic Samuelson, CEO of Campden Wealth, suggests family offices currently hold assets in excess of $4 trillion.
Consilium work very closely with a small select cohort of Family offices who are often looking to invest into real estate projects or looking to diversify their portfolio by investing into a varied base of commercial investments. In either scenario Consilium is trusted to showcase some of the exciting projects that are looking for investment.
The UK has a very active Angel community. Angel investing is one the most significant sources of investment in start-up and early-stage businesses seeking equity to grow their business. This is often seen the most risky investments and where the High Street banks will only provide funding if there is a tangible asset to securitise the finance.
Many business angels invest privately with an estimated £1.5bn per annum invested by angels into UK Businesses. There are various angel networks across the country often grouped into geographical areas. Many business angels will invest alone but in recent years the trend is to form a syndicate (creating a group) to enable a larger investment. Most small size investments may start around £10,000 but tend to end up around £150,000 and upwards after syndicating.
Consilium have access to a number of business angel networks across the country. Consilium understand the calibre of investment opportunities the business angels are looking for and they in turn have confidence in Consilium in forwarding bono fide businesses who are ready for investment.