The success of UK tech hubs such as Silicon Roundabout has driven a 26 per cent rise in ICT (Information Communication and Technology) companies seeking to raise funds to fuel their growth through the Enterprise Investment Scheme (EIS).
The EIS, a government initiative, is designed to encourage private investment in small companies through generous tax breaks.
In the last year the number of ICT firms using the scheme has jumped from 490 to 615, says Radius Equity, a private equity investment provider.
Radius Equity added that the ICT sector accounted for the largest proportion of funds invested under the Seed Enterprise Investment Scheme (SEIS) in the last year, making up 32 per cent of all money raised under the scheme.
Gary Robins, director at Radius Equity, said: “The success of tech hubs all over the country – from London’s Silicon Roundabout, to the Silicon Gorge on the River Avon outside Bristol, and Silicon Fen near Cambridge – means there is a large number of ICT businesses that have started successfully from scratch and which are now seeking new investment to fuel their next growth.”