Nearly half of UK unicorns founded between 2011 and 2023 received EIS investment
London, UK, 18 September 2024 — Enterprise Investment Scheme Association (EISA), today marks 30 years of the Enterprise Investment Scheme (EIS). A report commissioned by EISA with Beauhurst to mark the anniversary highlights the positive impact of the scheme. According to the report, EIS-backed companies generated £192 billion in revenue between 2014 and 2023, creating an estimated 386,000 jobs in 2023 alone.
Since its inception in 1994, the EIS has played a pivotal role in fostering innovation and driving economic growth in the UK. The scheme was introduced by the government to encourage investment in startups by providing significant tax incentives. Through the scheme, investors can receive tax reliefs on their investments in eligible companies, including 30% income tax relief and capital gains tax (CGT) freedom, making it an attractive option for individuals looking to support early-stage businesses.
Together with its sister scheme, the Seed Enterprise Investment Scheme (SEIS), it has facilitated over £32 billion in private investment into 56,000 startups across the country.
Christiana Stewart-Lockhart, Director General of EISA said: “EIS has been instrumental in driving investment fuelling the growth of thousands of ambitious businesses in the UK. More than 40,000 people invest through the EIS each year, yet public awareness remains surprisingly low. This 30th anniversary serves as an important opportunity to raise this awareness and celebrate the transformative impact of the EIS. The extension of the sunset clause to 2035 is an encouraging step, but more needs to be done to expand awareness and ensure continued support for UK innovation.”
Joanna Jensen, Chair of EISA said: “As an entrepreneur, I’ve seen first-hand the critical role EIS plays in helping businesses like mine secure the early-stage funding they need to scale. It’s not just about the tax reliefs, it’s about providing the confidence and capital required to bring bold ideas to life. Without schemes like EIS, many game-changing UK companies wouldn’t get off the ground. With increased awareness, EIS will continue to play a key role in driving innovation across the country.”
Henry Whorwood, Managing Director – Research and Consultancy at Beauhurst said: “Our new report estimates the impact of the EIS in just the past 10 years. The jobs supported, patents published, and grants awarded are all so high that the scheme should be regarded as a cornerstone of the UK’s innovation and investment landscape.”
Conrad Ford, Chief Product & Strategy Officer at Allica Bank said: “The UK’s future prosperity will come from ambitious companies and founders, so we’re delighted to be supporting EISA in its celebration of British entrepreneurship. Allica Bank exists solely to give established businesses the banking they deserve, and we look forward to playing our part in supporting the coming decades of growth.”
The 30th anniversary will be marked with a conference and evening reception at the Institute of Directors in London. The event will bring together 350 entrepreneurs, investors and advisers from across the entrepreneurial ecosystem to commemorate three decades of its profound impact on the entrepreneurial and investment landscape of the UK.
