Member Article

Is “patriotic potential” the key to driving growth?

Brits have the “patriotic potential” to crowdfund innovative SMEs that continue to face a squeeze on finance, the BioIndustry Association suggests.

In a report, the BIA suggests an estimated £300m of investment could be unlocked a year, and 15000 new jobs created, if the British public are enabled to support innovative businesses.

The report outlines ‘Citizens’ Innovation Funds (CIFs); a tax advantaged investment scheme offering an opportunity to invest companies.

It is based on the Fonds Communs de Placements dans L’Innovation (FCPI), a successful French scheme which has raised over €6bn since 1997 and invested in more than 1,000 businesses.

Steve Bates, BIA Chief Executive Officer, said: “Citizens’ Innovation Funds provide a practical way of unlocking the patriotic potential of a large number of Britons to crowdfund the innovative businesses which are essential for our nation’s economic future.

“In simple terms CIFs would allow members of the public to put up to £15, 000 a year into a fund for dragons’ den-style experts to invest in innovative companies – with a tax break if they keep their money invested for five years and tax free potential dividends.

“For companies access to such cash could prevent them from being sold at the earliest opportunity and allow them to maximise the potential for development and become a “British Google”, a “British Apple” or a “British Amgen”.

Dr Melanie Lee, Chief Executive Officer at Syntaxin, a company that has received FCPI funding, said: “The FCPI-related investment we have received has provided another source of cash to fund the research required to discover and develop new treatments for patients.

“For companies like Syntaxin, having a similar scheme in the UK would be a boost for innovation, and has the opportunity to bring the understanding of science closer to the general public.”

This was posted in Bdaily's Members' News section by Tom Keighley .