Last year, SyndicateRoom commissioned Beauhurst research to look at startup investing, tracking a cohort of companies that raised seed or venture funding in 2011 through to where they are now. We’ve partnered with them again on their latest report, Early Stage Equities: A Long Term Study, and repeated the research on the same cohort of companies.
On average, the companies increased in value at a rate of 30% per year.
If you had invested £10,000 into this cohort of companies in 2011, your investment would now be worth £63,848.
As an EIS-qualifying investor, you would have received net cash returns of £23,745 and still have £38,294 invested.
Thanks to EIS relief, the failures (14% of the companies), would only have cost you £341.