Enterprise Investment Scheme at 30 – Is now a good time to invest?

The Enterprise Investment Scheme (EIS) was introduced by Chancellor Kenneth Clarke in 1994. 30 years on, and now extended for another 10 years, EIS is a powerhouse: it now raises some £2 billion of investment each year onto an average of c.4,000 early-stage British companies. Investors get generous tax breaks, recognising the high risks of backing young companies. So, is now a good time to invest? We’ve asked three well-regarded EIS fund managers – each with a different investment approach – for their insight. Ed Guinness of Guinness Ventures, Fred Soneya of Haatch and Andy Barrow of Praetura join Wealth Club’s founder Alex Davies at the roundtable.

0:00 What is the Enterprise investment Scheme?
1:27 What type of companies can you invest in through EIS?
2:06 What are the five main tax reliefs for investors?
3:29 “Less hyped, more reasonably priced” – what is it like finding investments in 2024?
5:26 Is AI overhyped, or a genuine opportunity?
8:49 How have EIS-backed companies fared through the recent downturn?
10:16 Are good companies putting off raising money until valuations rise?
12:06 What makes an investable founder / team?
14:36 What returns should investors be expecting?
16:56 How did the pandemic affect EIS businesses?
18:10 What should change about the Enterprise Investment Scheme?
20:56 Ultimately, why consider investing in an EIS this tax year?

Important: The investments discussed are not suitable for everyone. This video is not advice, research, nor a personal recommendation to invest. Each interviewee represents their own views, not necessarily those of Wealth Club Limited – you should form your own view. If you’re unsure an investment is right for you, please seek advice.