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EIS CASE STUDIES
We have included some case studies of EIS investments over the next few pages to help
bring to life some of the key points that we have been making throughout this report.
#1
EIS investment is not necessarily about providing seed capital to high-
risk start-ups. It can be about investing in well-established companies that have
their own assets, a large workforce and long-standing customers.
#2
On the other hand, we’ve also highlighted the additional risk of investing in smaller
companies. They are more risky than large, listed companies and mainstream investment
funds, and there is less information available to base investment decisions on.
#3
However, for investors who are prepared to do their own research and
due diligence in order to bridge this information gap, it is possible to identify
fantastic opportunities where the risk/reward ratio is favourable.
#4
EIS investment managers can give investors access to the skills and experience required to carry
out the required level of research and accurately assess these opportunities – for a fee of course.
#5
EIS investment managers can also help solve some of the other problems with small company
investing. They can exercise influence over the companies they invest in, adding value by offering
guidance at the same time as ensuring that their investors’ interests are taken into account.
#6
Finally, successful EIS investments have wider benefits that go beyond the investment
return: companies grow, pay more tax and employ more people. These are the reasons
why the EIS continues to attract strong levels of support from the government.
PARTICIPATION
At the EISA Fund Manager Forum in June 2014 we invited its members to participate in an initiative to
have this, our first industry report on EIS, professionally designed and printed. Four of the EIS managers
agreed to participate – they were Oxford Capital, MMC Ventures, Parkwalk Advisers and Octopus
Investments. In return they could provide us with case studies and a short company profile for inclusion,
as well as some general commentary and these appear as attributed quotes throughout the report.
EIS investment opportunities can be
particularly interesting and exciting –
covering a range of innovative sectors and
supporting some fantastic companies.
