RECORD YEAR FOR (S)EIS FUNDING

Tax-efficient investment specialist Deepbridge Capital has reported a record year of deploying funds via their technology and life sciences focused Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) portfolios.

Deepbridge reported total funds deployed during the 2016/17 tax year, via their retail investment propositions, as £24m.

During the 2016/17 tax year, Deepbridge deployed £14m via their flagship Deepbridge Technology Growth EIS and launched the Deepbridge Life Sciences EIS ready for the 2017/18 tax year.

In addition, Deepbridge has now invested in over 30 seed-stage life sciences companies via the Deepbridge Life Sciences SEIS and launched the unique Deepbridge Sci-Tech Daresbury SEIS, providing funding for innovative technologies based at the highly-regarded technology and innovation campus in Cheshire, Sci-Tech Daresbury.

Figures released in April 2017 by HMRC show the Enterprise Investment Scheme raised £1.65bn of funding in the 2015/16 tax year.

The figures show a drop of £230m in EIS fundraising in 2015/16 compared to the previous year, though the figure raised of £1.65bn was still the second highest amount raised since the inception of Enterprise Investment Scheme in 1994. The same report also shows Seed Enterprise Investment Scheme fundraising was £169m.

Ian Warwick, Managing Partner at Deepbridge Capital, commented:

“Financial advisers and private investors are increasingly utilising Government initiatives, such as the Enterprise Investment Scheme and Seed Enterprise Investment Scheme in order to benefit from the potentially generous tax reliefs.  Our experience also suggests that these advisers and investors now commonly want to know where their money is going and want to understand more about the underlying investments. By offering sector-specific investment opportunities, in sectors in which our team has considerable experience, we continue to provide investors with appealing propositions.

“We are delighted to work with a growing community of financial advisers who appreciate our focus on working closely with innovative investee companies to create successful businesses, and thereby providing investors with access to portfolios of companies that adhere to the full spirit of EIS.

“Although HMRC has reported that the overall funding levels for EIS and SEIS have decreased, Deepbridge is seeing increasing interest from advisers and investors as they seek opportunities which are in line with the Government’s objectives for the EIS, namely funding innovation and job creation.  The HMRC-reported decrease in EIS funds raised was largely attributable to the removal of renewable energy projects qualifying for EIS as the Government pushes EIS towards these core objectives.”