SEIS at Global Entrepreneurship Week
Manchester Business School - Global Entrepreneurship Week
Appearing at Global Entrepreneurship Week this week at Manchester Business School, Glyn Powditch urges wannabe start-ups and small investors to follow his lead and go for it, using the governments latest tax incentive SEIS, before it runs out.
Speaking to the newly formed Entrepreneurship Club at Manchester Business School yesterday, Glyn explained the benefits of the SEIS scheme, which effectively lets an investor invest up to £100k for just £22k.
Being the instigator of one of the first SEIS schemes in the country for a JV Project by Dream Agility, not only enabled the project to go ahead, but gave the group of investors £150k capital for only £33k investment (after tax relief). This venture has turned over 6 figures in its first year and is growing exponentially. Traditionally you’d have to go to a VC or a bank, who would either want a huge chunk of your business on unreasonable terms, or to secure your house against it. But being able to raise unsecured funds of up to £150k, with the investors potentially only risking £33k, is a phenomenal alternative and an opportunity not to be missed. The figure is set to reduce for shares sold to fund an SIES investment in 2013/14.
The FT says “the SEIS is one of the worlds most generous tax reliefs for early stage investments…the take up has risen to £82million in 18 months”.
Glyn has recently made the jump from being a Director at SkyBet to a full time Digital Entrepreneur at Dreamagility.com. He says it’s a different kind of stress, but the trade off is completely worth it. I’d recommend anyone to do it whilst they have the opportunity or the idea.