SEIS investing – you may get an exit after you are dead

SEIS investing – you may get an exit after you are dead

The Walking Dead - Season 2, Episode 11 - Photo Credit: Gene Page/AMC

The UK government has created a great tax environment for people to invest and get huge tax relief on their investments, on entry and on exit. But several things have happened that mean you may get an exit after your death:) The reasons for this are:

– Startups now find it easier to raise £150K rounds so they are raising earlier and sometimes with just a piece of paper and an interesting team.

– Hedge funds and private equity investors are looking at later stage companies, pre ipo, and investing into them. They take preference shares so their investment downside is derisked and as such they are willing to let a bet ride longer waiting for a suitable valuation to want an exit or IPO to happen.

The outcome is that early investors are investing earlier and companies are exiting later. Thus creating a longer time period you will have to wait till you see an exit. You could be dead before you see any money back on your initial investment, should be the tag line