Posts Tagged ‘SMEs’
Do too many startups are focussed on raising money as if money were the answer to all problems. Whilst a focus on giving business angels and VCs ‘what they want’ is admirable, it often comes at the cost of not focussing on the relationship.
What can you do about this?
The Office of Tax Simplification will be reviewing all tax reliefs and allowances ahead of this year’s budget. The Enterprise Investment Scheme will be one of those tax reliefs under the microscope – but as investment through the scheme has slumped, the real question is, will it be missed?
In these difficult, recessionary times it’s become harder than ever for SME’s to raise money to finance their working capital and expansion. Banks seem to be closed to business and institutional money is very hard to come by for small companies. So, potential deals with business angels represent a life-line for SME’s.
Much has been written about how angel investors can help entrepreneurs, but who do business angels turn to when they need help?
Business angels are seen as the amateur cousins of professional venture capitalist investors in much the same way as the blue chip business sector is often seen as the core value sector of any economy. In fact, blue chips represent less than 2% of businesses in terms of volume and less than 50% in terms of value.
Entrepreneurs can now claim Capital Gains Tax relief on up to £5m worth of business sales in a lifetime – this is up from £2m in March and £1m only 6 months ago.