A Glasgow-based angel investment network has announced a new partnerhip aimed at enhancing enhance investment and support to small businesses with high growth potential.
Accountants Chiene and Tait will service a dedicated Business Angel Helpline, providing advice to LINC Scotland's angel syndicates on how they can best structure any potential investments and maximise available tax reliefs. For the last year, Chiene and Tait has run an initial helpline trial which assisted LINC’s members on a range of matters including pre-deal structuring questions, advice on EIS (Enterprise Investment Scheme) and SEIS (Seed Enterprise Investment Scheme) and assistance on other HMRC matters relating to potential angel investments.
This strikes us as one of those great marketing ideas that will work because it doesn't just come from the marketing department, but actively involves senior fee-earners and their business networks. A telephone conversation to discuss the basic of a deal somebody might have in the pipeline is the simplest of business development activities.
And if you know that phone call is coming from a syndicate of experienced angelinvestors, why wouldn't you give them the benefit of your time, before you put the clock on? LINC Scotland claims it facilitates funding for about one in six of the companies it works with - a much higher "hit rate" than conventional venture capital organisations. And accountants who know to structure deals to give you good tax breaks (which is the essence of EIS and SEIS funding) are exactly the kind of people that investors and high net worth individuals like to have in their networks.
We' ll keep an eye on how this partnership develops in 2017.