Who are EIS investors?


#1

https://www.ftadviser.com/investments/2018/05/01/who-are-eis-investors/?page=1

Thoughts?


#2

I think this article is half way there, but I’m not convinced it’s just the ‘younger’ investor audience heading down the EIS route. I think when it comes to these opportunities these investments are made as ‘passion’ investments (something that an investor perhaps supports perhaps as a result of friendships or hobbies). I think we’d be naive to think that it’s purely the younger audience that have these passions. I’m sure an older generation is just as likely to look down the EIS route (if not just for tax benefits).

However, I totally agree that the companies eligible for these schemes tend to be more younger audience focussed (e.g. craft breweries, niche cafes, digital banks) - but just not sure we can rule out a generation who may just be looking to add a bit of diversity to their portfolio!


#3

To me this feels like a pretty narrow view and should take into account SEIS. The increased threshold for certain sectors is great news but the qualifying criteria were already very broad and available to almost all early stage companies.

In my experience the very early stage opportunities that often qualify for SEIS are the ones that really draw a younger investor audience. Whilst young and ‘risk on’ the appeal of getting in on the ground floor whilst availing oneself of 50% tax relief is palpably exciting.