Prime Wealth Group has introduced a new funding platform for Enterprise Investment Scheme (EIS) and Seed Investment Schemes (SEIS) enabling start-ups to secure funds of £5m over next year from high net worth individuals and family offices.
The scheme is launched on the back of financial crunch faced by small and mid-sized businesses with the banks shying away from investing in young companies, reported The Telegraph.
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Real metal finishing company Metall-FX has secured £150,000 from the scheme, with additional investment is expected in the future.
MetallFX spokesperson was quoted by The Telegraph as saying the funding has helped the company in exceeding its own plans.
"We want to develop our company and are setting up in India as well as extending out product range from walls to flooring – combining semi precious stones with cold metal spray," added the spokesperson.
Prime Wealth Group chief executive Patrick Butler said: "As well as hoping to help our investors achieve great returns we also hope the new platform will help direct more much-needed funding to hard-pressed growth businesses, which are still struggling to source finance despite popular funding options such as crowd funding.
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By GlobalData"With our platform, we aim to assist growth businesses quicken the pace of their expansion and help drive the UK’s economic recovery."
Prime Wealth Group is currently focused on the film production market to expand its platform, which is an alternative structure to other tax-driven film finance deals which have not been accepted by HMRC.
EIS provides companies investment of up to £5m, while individual investors can take up shares of up to £1m with tax relief 30% on the cost of the investment. The scheme launched a decade ago enabled nearly £10bn into growth companies.
Meanwhile, SEIS is designed at supporting the start-up companies in raising equity finance. Around 100 companies have raised a total of £80m from private investors and the tax relief offered is 50% on the initial cost of the shares on an investment of up to £100,000 in a single tax year.
