KickStart Capital & COVID-19
Whilst COVID-19, has had an impact on all businesses, we are pleased that KickStart Capital / EIS.Marketing has continued to operate and help its clients through these challenging times. Although some of the team have been working remotely for periods, we have tried to maintain our usual high standards of service throughout the pandemic and we continue to do so on an ongoing basis.
In terms of EIS / SEIS, as covered in the summary below, there has naturally been a downturn in the market since the pandemic. Unfortunately, to make things worse, the timing has also coincided with the end of the tax year, a time when the EIS market is traditionally at its busiest. This means that whilst we have had some opportunities listed on our platform over the last few months, they have not been actively marketed, as there has been less appetite to invest during these challenging times.
On a positive note, we now feel that things are starting to pick up and we are starting to see some real traction behind some of the opportunities on the KickStart Capital platform.
COVID-19 & EIS / SEIS
The coronavirus pandemic has had a major impact on everyone and there is no doubt it has hit the EIS sector too. Many investors have taken risk off the table, at least in the short term, therefore reducing the funds flowing into EIS and indeed many other investments.
Fortunately, we have found that, as of September 2020, as some of the world is starting to get back to normal, interest in EIS is starting to pick up again. By their very nature, EIS companies are often dynamic and innovative companies and many EIS have adapted their business model to take advantage of the new opportunities brought about by COVID-19. Additionally, there are many positive steps being taken by both the industry as a whole and the EISA and some of these steps could be positive for EIS investors in the long run.
Like any investment there are risks associated with investing in EIS, but unlike most investments there are valuable tax reliefs available to investors at the time of investment, which can reduce the effective cost of investment and there are also many longer term benefits.
Besides specific EIS benefits such as the various EIS tax reliefs, there are also many general support schemes / grants and other initiatives that have been announced by the government to help British companies cope with the issues caused by COVID-19, and encourage the development of innovative solutions to help deal with both the direct impact of COVID-19 and also the wider impact it has on business and the everyday lives of individuals. Whilst these are not EIS specific benefits, there are EIS companies that are well positioned to potentially take advantage of some of these initiatives.
Nobody knows what the future holds for EIS or indeed for any investments in these uncertain times. However, whilst things have been slow in the EIS market, there is a feeling that things are starting to pick up. For investors looking at EIS, there are some really potentially exciting investment opportunities available.