How do SEIS and EIS differ in terms of their target companies?

SEIS, or the Seed Enterprise Investment Scheme, is specifically designed to support start-up companies in the UK that are looking for funding to grow and develop. It offers significant tax relief incentives to investors who invest in these early-stage businesses. This scheme aims to encourage investment in new ventures, which often face challenges in securing funding due to their unproven business models.

On the other hand, EIS, or the Enterprise Investment Scheme, is oriented towards slightly more established businesses. While EIS still supports small enterprises, it focuses on companies that are further along in their development compared to those of the SEIS. This can include businesses that have been in operation for a few years and are looking to expand or innovate.

The key difference lies in the stage of business development that each scheme targets. SEIS is tailored for very early-stage businesses, allowing investors to take on higher risks with the potential for greater rewards, whereas EIS is structured for companies that have a bit more history and perhaps a more proven track record. Thus, the affirmation about SEIS targeting start-up companies and EIS targeting larger, more established companies accurately captures the essence of both schemes' objectives and reach.