Comments on: Budget Puts the Squeeze Business Angels

By: Neil Lewis

Neil Lewis — Tue, 29 Jun 2010 15:54:04 +0000

Hi Bill – indeed – it does seem to make the EIS structure all the more important/ valuable?

Are you finding that EIS is now an essential requirement for any pitch?

Br
Neil

By: Bill Morrow - Founder AngelsDen

Bill Morrow - Founder AngelsDen — Mon, 28 Jun 2010 10:14:16 +0000

AngelsDen has over 3400 angels registered and this is NOT what they are reporting.
It’s makes good headlines, but IF you have money to invest … you need to put it somewhere … quoted share portfolios WILL be less attractive, but given that most equity investments are made under EIS (and thus are exempt from CGT) equity funding is actually MORE attractive.
We now have over 430 angels a day visiting the site, looking for deals to invest in … this is 11% up, since the budget.
Sorry to be a party pooper.

By: Neil Lewis - successful entrepreneur

Neil Lewis - successful entrepreneur — Thu, 24 Jun 2010 07:07:48 +0000

Interesting thoughts Brett.

I think most business angels will either be looking to make up the remainder of their £5m life time relief (but this will require a minimum percentage holding) or they’ll need to use the EIS (enterprise relief scheme).

However these changes are more likely to put off large scale micro investments – but it is not clear that these were taking off as fast as expected?

Lastly, if it is Mum or Dad providing a £5k seed funding – it might be easier and more efficient to treat this as a gift.

Either way, there are some significant changes here that need to be incorporated into any investment strategy.

Best regards
Neil

Ps. The capital allowance changed will raise costs of purchasing capital equipment – which will almost certainly increase the barrier to entry for manufacturing start-ups.

By: Jon Williams

Jon Williams — Wed, 23 Jun 2010 13:59:39 +0000

I have to agree with these comments.

Over the last few weeks in meetings with entrepreneurs around the south east, including a http://www.efactor.com event in London, fears have been expressed around the (previously) forthcoming budget. At least some of the rumours/speculation haven’t happened, but with the CGT changes it is less attractive.

I guess the upside is we’re beyond the uncertainty of the last couple of months. Lets see how it pans out…

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Wed, 23 Jun 2010 13:40:55 +0000

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