Overview

The Chancellor's March 2011 Budget introduces changes to the way companies can raise money from Venture Capital Trusts (VCTs) and through the Enterprise Investment Scheme (EIS). Due to take effect largely from April 2012, the changes are likely to open up significant new sources of funding for companies looking to list, or raise further funding, on AIM.

In essence, the Treasury is doing three things which may help many AIM companies raise funding from individuals and VCTs:

• Firstly, it is making EIS investments more attractive to individual investors.
• Secondly, it will allow VCTs and EIS investors to invest in much bigger companies than is currently the case.
• Finally, it will allow companies to raise up to £10 million from VCT and EIS investors in any rolling twelve month period - a 500% increase on the current cap of £2 million.

Wragge & Co looks into how this will impact companies.

To read more click ‘view briefing’.