Major EIS fund closes doors
One of the largest funds supporting startups through the EIS scheme is reportedly closing.
The Times reports that Oxford Capital has shuttered its EIS funds and laid off several staff.
Oxford invested in startups in fields such as fintech, retail, and digital health, offering private investors a tax-efficient way to participate in funding rounds.
The fund leveraged the government’s Enterprise Investment Scheme (EIS), under which investors are entitled to a tax break of up to 30 per cent for backing higher-risk startups.
EIS and its sister scheme SEIS have been extremely popular tools for those looking for a tax-efficient investment strategy. But the government has recently tightened the rules around EIS, especially in fields such as film production.
The closure of the Oxford funds is understood to be temporary, but there is no indication as to when they will be re-opened.
The Times reports that industry insiders expect other funds to follow Oxford’s lead.