When you are looking to raise equity capital and are approaching investors, it can help if you have gone to some lengths to ‘de-risk’ your venture. There are numerous ways of doing this e.g. you may have successfully received a level of grant funding which can demonstrate that your venture has been subjected to and withstood a level of due diligence and scrutiny.
However, an other popular approach is to gain SEIS/EIS approval. SEIS (Seed Enterprise Investment Scheme) offers private investors generous tax reliefs on investments into early-stage companies. Introduced in 2021, investors can claim relief on a level of investment made through the scheme per annum. Relief applies to investments made directly into companies or through an SEIS fund. SEIS came about largely due to the success of EIS (Enterprise Investment Scheme) launched in 2012/13, and offers greater tax breaks perhaps in part due to the higher risk associated with earlier stage businesses.
Gaining approval is a very worthwhile exercise but there are a number of prerequisites and exclusions that you must be aware of and consider; the rules surrounding SEIS/EIS are hugely complex and are regularly updated. It is an area on which we advocate you always seek specialist advice, as the tax implications of getting it wrong can be significant i.e. your SEIS/EIS advance assurance application being rejected or your investors having their tax reliefs inadvertently withdrawn.
To cover this complex subject and to share real world business cases, we are delighted to again welcome Kathy Hills, Partner in Penningtons Manches Cooper, to join us as specialist for this webinar. Kathy’s clients are predominantly growth companies and she regularly advises on tax efficient investments, employment status for tax purposes, incentivising employees, and structuring for exit.
Who is this webinar series for?
This webinar series has been specifically designed to meet the needs of businesses looking for equity investment, be that from a venture capital firm or business angel. We have essentially invited local specialists and investors to co-host these sessions which will consist of approx. 30 mins presentation and 30 mins Q&A.
You may or may not have already attended OxLEP’s other investment-related events i.e. Investor Pitching Fast Track, Pitch to the Panel, or Scale up and Investment Power Hours. Where ever you are on your investment journey, we welcome you and urge you to register for all 4 webinars in order to gain optimum insight and value.
For more information about the eScalate programme, visit: www.oxfordshirelep.com/escalate
Please note that these 1:1 sessions are part-funded by the European Regional Development Fund (ERDF) and are delivered as part of the eScalate programme to help SMEs. By engaging in this programme you are being offered assistance under the De Minimis regulation which allows a company to receive up to but not exceeding €200,000 of public funding (at the applicable exchange rate) of De Minimis aid over a rolling three-tax year fiscal period. This de minimis declaration does not cover undertakings engaged in: the primary production of agricultural goods and fisheries/aquaculture, road freight, services of general economic interest and export related activities and activities favouring domestic over imported goods. Please note, support cannot be given to undertakings (businesses) in difficulty. In order to receive support from this programme, you will be required to complete an application form and other relevant documentation.