UK Searchers - Has anyone used Enterprise Investment Scheme (EIS)?

searcher profile

October 17, 2022

by a searcher from HEC School of Management, Paris in Nottingham, UK

For those unfamiliar with the scheme here's the link.
https://www.gov.uk/guidance/venture-capital-schemes-apply-for-the-enterprise-investment-scheme

I wonder if this could be an additional risk reduction feature for a Search Fund.

Does anyone have any experience of applying for it?
And specifically, has anyone used it in a roll-up approach?

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commentor profile
Reply by a searcher
from INSEAD in London, UK
Hey Oliver, I have used EIS many times within the startup world for which it is designed. One of the key criteria to use this scheme is that it is used for investment into the company and not to pay shareholders. You could use this scheme if you are raising funds for the company you are running post an acquisition but bear in mind another constraint is that any EIS investment should be concluded within 7 years of the founding of the company which is unlikely in the search space.

Happy to connect if you have any other questions on this.
commentor profile
Reply by a searcher
from University of Victoria in London, UK
Hi Olivier. Have you seen this successfully done post-acquisition? I suppose it's rare to see search fund acquisitions younger than 7 years.
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