Millennials are twice as likely to adopt early-stage investing to achieve their financial goals as compared to their older counterparts, according to a research by online investment platform SyndicateRoom.

The study revealed that about one in ten retail investors have invested in tax-efficient products aimed at early-stage investing in the past 12 months including Venture Capital Trusts (VCTs), the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS).

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Half (50%) of retail investors also said that tax efficient investment products impact their investment decisions, while 33% stated otherwise.

The study unveiled that younger investors are more likely to invest in tax-efficient products when gaining access to early-stage companies.

Also, 92% of investors aged between 18-30 years said that diversified early-stage equities would help them reach long-term financial goals, while only 49% aged 51 and above cited the same.

Nearly half of retail investors said that tax-efficient products are more likely to encourage their early-stage equities investments. About 75% of younger investors cited the same, compared to 33% of their older counterparts.

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Also, 51% of investors with over £1m of investments believed tax breaks on income and capital gains as ‘very important’ when considering early-stage equity investments. The same was cited by only 30% of investors with less than £100k of investments.

About half of investors with over £1m in investments viewed EIS and SEIS as positive and impactful vehicles to achieving their goals. Over half of investors with over £1m in investments held the view that they are ‘completely on track’ in achieving their financial goals, as opposed to 39% of investors with under £100,000 in investments.

Meanwhile, 18% of investors under £100,000 said that they would take on riskier investments to get themselves back on track, compared to 11% with over £1m in investments.

SyndicateRoom CEO and co-founder Goncalo de Vasconcelos said: “Millennials are clearly ahead of the pack when it comes to taking advantage of the benefits that tax efficient products offer when investing in early-stage companies. This belief in the value of Britain’s young companies and business ideas by those who will control the economy of tomorrow is highly encouraging.

“The combined growth opportunity and tax benefits available through EIS schemes are highly attractive, and should be a consideration for any investor with a long investment time horizon.”