Encourage a new wave of 'few strings' investment in startups & growth business

Let's encourage a new and permanent step change in the amount of risk capital available to start ups and growth businesses by allowing ventures to raise money from the public without only bring able to approach sophisticated investors without going through an expensive and limiting FCA regulated advisor.

If we allow entrepreneurs to promote their ventures without holding them back, this will grow risk capital - and reduce the costs of raising it.

Of course some investors will lose money but many will win, encouraging a risk friendly environment.

The govt can help encourage investors too by putting the clear benefits of EIS and SEIS investments in every annual tax correspondence to anyone in the higher rate of tax and / or anyone who has incurred high capital gains. This will encourage asset rich people to invest in growth companies rather than property or shares in the main stock markets, who have no capital raising issues and create fewer new jobs/value.

It's crazy that promoting gambling on TV is legal but promoting investing to the public not!

Let's change this in 2014. It can be done quickly and and at no capital cost or delay, encourage an nation to entrepreneurs and venture investors. Go Growth Britain!

Alex Cheatle, Ten Group | Thu 9th Jan 2014 at 17:27

One of our favourite ideas!

2 comments:

Is this crowd funding by another name ? And you want the public to be able to invest without reference to a regulated entity, be that an advisor or broker? No recourse presumably to the FSCS or FOS when the company goes belly up ? Where are the safeguards for the public?

Simon Clark, SJC Systems Limited | Fri 10th Jan 2014 at 23:33

Echoing Simon's thoughts above: How is this different from crowdfunding? What more is there to do? The public at large has bigger issues on their plate than considering whether or not to put valuable savings and what discretionary income they might have on speculative start-ups and emerging businesses. Has crowdfunding failed?
David Blumenstein, TECHGB | Sat 15th Feb 2014 at 11:12

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