UKBAA response to ‘Financing Growth in Innovative Firms’ consultation


UK Business Angels Association

29 September 2017

UKBAA has responded to the government’s Financing Growth in Innovative Firms consultation, which forms part of the Patient Capital Review.

Jenny Tooth OBE, CEO of UKBAA, said:

“We welcome the Patient Capital Review and its focus on ensuring that small innovating businesses can access the long-term finance they need to successfully scale and grow their companies here in the UK.

“It is important to note that business angels represent a key source of patient capital, bringing both investment and access to experience and knowledge to support their investee businesses on their growth journey, often through multiple rounds of finance. Recent research by Oxford Economics identified that in the five years to 2015, over 15,000 small businesses received angel investment, with these businesses contributing £9bn and 68,700 jobs into the UK economy.

“Most angels make active use of the EIS and SEIS schemes, having recognised the benefits of the EIS and SEIS tax breaks to support their investing, enabling them to take risks with their own money and back the UK’s innovating small businesses at a very early-stage when so many other institutional investors would not participate. We know that angels use the EIS scheme for nearly 80% of their investments, which shows the vital importance of this scheme; and we believe its benefits far outweigh the costs to Government of giving angels this tax relief.

“We therefore strongly urge the Government to continue to support these tax-advantaged venture capital schemes as one of the most fundamental catalysts for bringing private individuals to make investments in high-risk innovative small businesses here in the UK.”

Read our full response here.


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