Things to consider when choosing an EIS investment

When considering an EIS investment, several key factors should be taken into account:

Consult a Financial Adviser

Investors should seek advice from a financial adviser who understands their unique circumstances, risk tolerance, and long-term goals. A professional can help tailor the right EIS investment to meet individual needs.

Assess the risks

Investing in EIS-qualifying companies involves higher risks. These companies are often unlisted and may fluctuate in value, potentially falling to nil. Shares in unlisted businesses are generally harder to sell, and liquidity can be a concern. Additionally, if a company loses its EIS-qualifying status, tax reliefs will need to be repaid. Changes in tax rules can also affect future reliefs.

Choose the right investment manager

It's essential to evaluate the experience and track record of the EIS manager. A strong history of selecting smaller companies and successfully facilitating exits can be an indicator of reliability. However, past performance does not guarantee future success. Keep in mind that selling shares can take years, so an exit plan is important.

Review fees

Carefully compare the fees of various EIS portfolio services. These costs can vary, and it’s essential to understand how they impact overall returns.



Fuel Ventures Limited is the appointed representative of Sapphire Capital Partners LLP, who are authorised and regulated by the Financial Conduct Authority with firm reference number 565716.

© Fuel Ventures Limited. All Rights Reserved.

IMPORTANT NOTICE: Investing in start-ups and early stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. Any investments are targeted exclusively at investors who understand the risks of investing in early stage businesses and can make their own investment decisions. Any pitches for investment are not offers to the public. The value of an Investment may go down as well as up and an Investor may not get back the full amount invested and may therefore lose some or all of their Investment.

The tax treatment referred to on this website depends on the individual circumstances of each investor and may be subject to change in the future. In addition, the availability of any tax reliefs depends on investee companies maintaining their qualifying status.

While the Financial Services Compensation Scheme (FSCS) may protect certain investment opportunities, it does not extend coverage to Venture Capital Trusts (VCTs). For more details, please contact us or refer to the website: https://www.fscs.org.uk

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