Today’s Budget includes a reversal of the January changes to the definition of High Net Worth and Sophisticated Investors. This is fantastic news for founders and investors across the UK.
At the end of January, the Treasury implemented changes to the Financial Promotion Order exemptions that raised the required income threshold to qualify as a high-net-worth investor from £100,000 to £170,000 and removed some of the Sophisticated Investor qualifying criteria.
Thousands across the ecosystem warned that the change would result in less funding for startups and would disproportionately impact women and underrepresented investors. The changes risked damage to the UK’s startup ecosystem and its status as a growth engine for the economy as a whole.
EISA campaigned for the reversal of the changes alongside the Startup Coalition, who coordinated the Angel’s Letter – an open letter to Government.
Other key signatories included the UKBAA, Alma Angel’s Network, Extend Ventures, The Entrepreneurs Network, Enterprise Alumni, Angel Academe, and Angel Investing School.
Many EISA members also joined more than 2,900 total signatories to the Letter.
The result today is an important one for the UK startup ecosystem as a whole, and in particular for female and underrepresented founders and angels, who stood to be disproportionately affected by the changes. Crucially, it will help to ensure that there is more investment available to these founders and to so many other entrepreneurs across the UK.
Our sincere thanks to Government for listening so attentively to our concerns and the concerns of all campaigners on this issue and for taking quick action.