SEIS: 5 reasons why entrepreneurs need it….

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Written By Mostafa Moradi

seed enterprise investment schemeEven though there is an air of positivity pulsing through the start-up industry – one of the main factors in any potential for economic resurgence in the UK – the national media would still have us believe we are locked in the dark ages.

This is not the case however, as young companies are growing and expanding at a quicker pace than ever before, and while the UK is hardly out of the woods yet – there are way too many other economic and social factors in the country to ever foresee that – the start-up sector can rightly boast to be stealing a march all of its own.

What this does mean however, is that more cash is needed earlier to aid growth and expansion. It is for this reason that so many of the youngest and brightest stars of the start-up world are looking to the Seed Enterprise Investment Scheme (SEIS) as a means to find the funding they need.

The popularity of both the EIS and SEIS has helped to kick-start a good number of companies with potential for success, and although the SEIS was confirmed as a permanent fixture last year by George Osborne, with a General Election in May and a potential change of Government in the post, the scheme could be reviewed and changed or done away with entirely, but here are the top five reasons why SEIS simply has to stay:

1.  It is Britain’s most generous ever tax-incentivised scheme

And the numbers speak for themselves, a 73% annual increase in the number of companies looking to source funding through participation in the scheme says it all.

2. Crowdfunding platforms love it

Many investment platforms look specifically for SEIS-qualifying companies to put in front of their investors. Crowdfunding looks to be a trend with all the potential for continuance to be able to make investment in entrepreneurs and start-ups an accessible venture for those for whom it would have before been too complex, or too much of a risk. Crowdfunding combined with SEIS could propel thousands of promising entrepreneurs to global success each year for decades to come.

3. No need to deal with banks

Being held to ransom for a cash injection by some multi-billion pound-wasting banker is of little appeal to anybody hoping to venture out into the dark and cold world of business on their own. Now they have the opportunity to pitch to passionate and experienced investors. Banks have been eased out of the frame, partly because of their own inability to meet the demands of rehabilitating the economy by providing support, but mainly due to the fact that alternative funding is far more attractive and beneficial.

4. Invaluable marketing

Securing funding from SEIS investors will often garner great attention in the media within the investments sector, and within the field in which your business operates. Exposure is great for any business, but creating a buzz by landing funding through the scheme will help bring your idea to a new audience.

5. The process can be quick

From pitching or making a video to present your product online, investment has been known to come through within 3 months. So many investors are now part of the crowdfunding or angel investment network across the UK, your pitch will get seen, and if it’s good, you will get investment.

You can download the guide to the scheme here.