Following the tax year end we need to dispel the misconception that S/EIS investing is seasonality driven and based around the end of the tax year.
As we move into an era of rebuilding the economy, investing in innovative British businesses has never been more important.
Successful S/EIS investing is down to good planning and not just timing and importantly access to exciting investment opportunities all year round.
Let’s look at a couple of the discussion areas:
Investor Considerations and Financial Planning
EIS and SEIS are becoming increasingly more important as financial planning tools within an adviser’s offering as well as for direct investors.
Historically there has been a cyclical feel to investing in EIS/SEIS opportunities, however as S/EIS investments are growing in importance alongside and being incorporated into an investors overall portfolio there is a strong case for investments to be spread across the year. Financial planning is not just a one month of the year process there are a number of key areas that need to be planned for and taking into consideration all year round, including:
- EIS can reduce income tax liabilities
- EIS as a retirement planning alternative
- Re-Investment of Capital Gains
- Extracting business tax-efficiently
- ISA and Pension Cap limits have been met
“At o2h Ventures we are approaching an all-year round investing model with quarterly closing of our SEIS fund and bi annual closings of the HMRC approved knowledge intensive EIS fund.”
The Investment Opportunities
UK early stage companies are going to play a crucial role in driving the post-Covid economic recovery and S/EIS provides the equity funding needed by these companies at the same time as offering investors attractive growth and potential.
Companies need funding not just at the tax year end… SEIS in particular gives investors an opportunity to get in at the start of a business when there can be excitement and buzz around the prospect of the next big thing.
It is very apparent that S/EIS are fully focused on growing and developing businesses and are playing a significant role in rebuilding, strengthening the economy and supporting UK entrepreneurs…
In addition as a specialist fund manager we are seeing trends in the market around company valuation data and the opportunity to invest in exciting emerging opportunities. Post a pre seed round when SEIS investment is key to the next stage valuations are increasing in general steadily and having the opportunity to access these opportunities all year round is key to the company’s fundraise but also a favourable investment spot for investors.
“As a fund manager at o2h Ventures we are evaluating exciting companies all year round and whilst working on a pipeline of opportunities to ensure that investors capital is deployed in a timely manner.
For more information on our investment opportunities click here.“
*capital at risk
