The government's SEIS scheme is helping entrepreneurs tackle the issue of raising finance by offering investors significant tax breaks. The problem is, no one seems to know about it.
The SEIS scheme is eligible for businesses that have been trading for less than two years, has 25 employees or less and no more than £200,000 in gross assets. You can find out why it's so attractive for potential investors in this video.
Today, at the London Stock Exchange, business minister Michael Fallon described it as 'the government's best kept secret.' But that's all about to change.
"In today's tough climate, business owners need to look beyond the banks and traditional investment avenues when looking for funding. The SEIS scheme is a breakthrough tax incentive which reduces the risk for investors," said School for Start-Ups founder and ex TV Dragon, Doug Richard, who has been touring the country to raise awareness of the scheme. "This initiative is so great for entrepreneurs and investors that it should be front page news, we need to spread the word."
It's already benefited some brilliant businesses. Smarta 100 winner Gloople, the social sharing e-commerce platform, raised £130,000 thanks to the benefits the scheme offers investors. Gourmet dips company G'NOSH managed to raise funds too. "SEIS made my business more attractive to investors and helped me get the funding I needed," said founder of G'NOSH, Charlotte Knight.
But too few businesses know about SEIS, which means they are missing out on the chance to attract investors by highlighting it to them.
Want to know more about SEIS? Watch the video below and please do share this blog with any other entrepreneurs you think this scheme would help.
Click this link for the video, http://www.seiswindow.org.uk/