A Letter from a enterprise capital agency to our new Prime Minister

Andrew Aldridge, Associate at Deepbridge Capital, has written an open letter to new Prime Minister Liz Truss setting out what he feels are her key priorities for the UK.

Pricey Liz,

Congratulations on changing into Prime Minister… for those who’re something like me you’ll be unpacking these elimination containers for weeks, however I’m you certain you sensibly ensured the kettle and bottle opener had been inside straightforward attain!

With a conflict in Europe, vitality costs persevering with to soar, Covid persevering with to hold round and the NHS in turmoil, I’m certain you’ve gotten an inbox stacked excessive with objects marked ‘pressing.’ Nevertheless, as a Conservative chief I’m certain that you just additionally want to ship a message to the enterprise group and our globally main monetary providers sector.

So, I’ve a ‘fast win’ suggestion for you that may showcase your want to help UK innovation, while empowering UK buyers to help the excessive development alternatives of tomorrow. The reply is very simple and can go away you with the time and focus to crack on with the appreciable challenges you face elsewhere. Absolutely such a fast win is interesting so that you could be stamp your mark with minimal fuss and most influence?

The UK is a world chief as a house to innovation, expertise and life sciences. World class academia and an entrepreneurial urge for food has created extremely expert jobs and improvements with the help of a sturdy funding ecosystem. We’ve got a robust funding group within the UK however the Enterprise Funding Scheme (EIS) has arguably by no means been extra crucial. The EIS is internationally recognised as some of the efficient tax reduction schemes; offering buyers with an unparalleled mixture of beneficiant tax reliefs together with earnings tax reduction, capital positive aspects tax deferral, CGT-free development, IHT exemption and share loss reduction.

So, Prime Minister, what’s your alternative for a singular ‘fast win’ in Workplace? Merely take away the 2025 sundown clause, which was traditionally agreed with the EU when searching for State Help approval for EIS. With ‘Brexit achieved,’ as I paraphrase your predecessor, this clause is now not wanted and is merely a hinderance to investor and entrepreneur confidence. So, a swift change may cement your status as a PM supporting enterprise, entrepreneurship and monetary providers.

Your staff within the Treasury, and quite a lot of your MPs, have been liaising with the likes of the Enterprise Funding Scheme Affiliation (EISA), the UK Enterprise Angels Affiliation (UKBAA) and The British Personal Fairness & Enterprise Capital Affiliation (BVCA), to objectively showcase the influence of the EIS by way of job creation, tech and life sciences development and HMRC receipts. All analysis we have now seen so far, together with our personal at Deepbridge Capital, emphatically reveals a considerably constructive influence throughout the board. With our focus being on early-stage tech corporations and life sciences that is significantly impactful, however this not about us!

One other probably straightforward win can be to extend the Seed EIS (SEIS) limits from the present £150k most SEIS elevate per firm and £100k restrict per investor. Maybe £300k for every firm and £200k per investor can be a smart enchancment, however that’s only a thought for one more day.

At Deepbridge we will proceed to help nice early-stage corporations throughout the expertise and life sciences sectors, offering non-public buyers with entry to those alternatives it doesn’t matter what, however it might be nice to proceed this underneath the world-leading Enterprise Funding Scheme.

Anyway, good luck within the new function and the brand new home – have you ever questioned whether or not altering the color of the entrance door is so as, I imagine teal is presently on pattern?