ScootElectric is an enterprise investment scheme that aims to raise up to £1m to invest in an electric scooter business.
The business was established in January 2002 to import full-size electric scooters to the UK and market them as an environmentally-friendly alternative to cars and public transport.
Initially the focus was on supply and the company has secured exclusive distributorship agreements with four Taiwanese manufacturers and an Italian e-scooter manufacturer. The directors believe this will make it difficult for a new entrant to compete.
Now the focus is on marketing and selling the scooters so the money raised by this offer will be used to finance marketing, warehousing, employing more sales staff, recruiting dealers and logistics support.
To date ScootElectric has sold, or taken orders for, 200 e-scooters but the director believe demand for electric scooters will grow over the next few years as people switch from petrol scooters, cars and public transport. Other areas of anticipated growth include the public sector such as the NHS and mobility market and specialist fleets such as couriers and fast food deliveries.
With electric scooters there are no parking or congestion charges and they are also exempt form road tax, which may make them attractive to the various target markets. The Government will also offer £200 rebates to people who buy an approved electric scooter. Two scooters in the ScootElectric range are already approved and the rest are likely to be qualify this summer. Some local authories also offer financial incentives to people who buy scooters.
However, the main problem with this EIS is that although environmental concerns, freedom from congestion or other charges and financial incentives are encouraging indicators to an increasing demand for electric scooters, this is still speculative. But according to the Allenbridge Tex Shelter Report, niche markets may sustain the business, which could take off when new battery technologies are developed.