100 signatures reached
To: Rishi Sunak
Save British Startups - Fix EIS and SEIS
Join our call for the Chancellor to Save British Startups by updating the EIS and SEIS schemes to make them fit for purpose in 2022 and beyond.
Secure the flow to capital to Startups by immediately removing the EIS sunset clause.
Enable the SEIS to fulfil its original promise to new Startups by doubling the investment cap to £300,000.
Why is this important?
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) have historically played a critical role as drivers of Britain’s world-leading Startup ecosystem. More than 30,000 businesses have received investment through the EIS with approximately £24bn raised. The schemes are responsible for building resilience into our small business economy and have lowered the barriers to capital for people from every background.
But they have become outdated and unable to fulfil their promise to UK Startups.
Startups today are launching without adequate funding because the £150,000 funding cap applied to the SEIS scheme has become outdated. The cap was designed in 2012 at a time when the amount would generally provide enough runway to last the average Startup a year. In 2022, £150,000 lasts a new business only a few months.
Equally, the flow of capital to early-stage businesses is being restricted because the EIS sunset clause is set to expire in April 2025. In reality, the deadline for investors has already passed because there is no guarantee that an investment made today will still qualify under the scheme after April 2025. This is suffocating investment and restricting Britain’s innovation funnel.