‘How the changing EIS affects investors’- Angel News features Dr Ilian Iliev’s article on how investors are reacting to the changing financial environment of EIS.
Changes in HMRC rules for EIS eligibility, the broader government re-focus on activist industrial policy, and the maturing of the UK startup investment scene are all contributing to a significant shift in the EIS investment landscape. Chances are that, over the next 2-3 years, there will be a realignment in the industry, which may lead to a greater diversity of EIS offerings and the emergence of more specialist players. A large proportion of the c. £2bn that were invested in EIS funds in 2016 was deployed toward various types of capital preservation schemes that may no longer be eligible for EIS purposes. This large pot of investible money may now be looking for an EIS-able home. While some investable funds may exit the EIS industry as capital-preservation products wind down, others may enter it, attracted by the greater diversity of growth investment opportunities.
In this article, Dr Ilian Iliev evaulates how investors are reacting to the changing financial environment of EIS
Angel News is a leading European news service for the early-stage investment market including business angels, venture capitalists, equity crowdfunding and entrepreneurs. You can read the full piece here: ‘How the changing EIS affects investors’