Research and analysis

The use and impact of Venture Capital Schemes

Quantitative and qualitative research into the use and impact of the Enterprise Investment Scheme and Venture Capital Trusts



This research was commissioned to help HMRC understand the design of the Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCT), in order to maximise their effectiveness in supporting UK start-up companies.

The research looks specifically at:

  • the incentive effects of tax reliefs on investors;
  • impacts on investees’ access to finance on business development and growth; and
  • the impact of an expansion of the schemes in 2012, which broadened the size of companies that can be invested in as well as the total investment limit.

The research took place in two stages in August and September 2014. Random probability telephone survey interviews were undertaken with 628 investee companies and 546 investors, covering EIS and VCT schemes. The survey was followed up with more detailed qualitative interviews with eight investee companies and seven investors who took part in the surveys, along with five VCT fund managers (who had not taken part in the surveys).

Published 2 February 2016