Enterprise investment schemes will struggle to raise funds following an influx of providers in the market, according to tax specialist Martin Churchill.
Tax Efficient Review editor Churchill says the number of EIS providers more than doubled from 15 to 35 in 2011/12 and the total number of EIS available to retail investors has reached 53.
Churchill says: “There are 53 EIS offers currently and they cannot all raise money as there is not that amount of interest.
“A lot of these offers are from providers new to the EIS space with no relevant track record.”
Recent EIS launches include Great Point Media’s Select Television Broadcast EIS, WH Ireland’s UK EIS Growth Fund 2013, and Ridley Scott’s UK production company Scott Free Films and Orchard Media’s movie EIS.
Experts say the Government could look to boost VCTs and EIS in the Budget in a package of support for small businesses.