I am enjoying the chance of backing a fast-growing firm
COLIN Smith, 52, is director of a construction industry software company and so he understands a thing or two about the fast moving IT sector.
So when Colin, from Iver in Buckinghamshire, came across Fantoo, a software firm developing a smart update to email technology, he wanted to invest in its potential growth.
He says: ‘It is long overdue for email to be improved and it gave me confidence when I saw it had won a competition to be a start-up in residence in the HQ of Dell computers in Bracknell.’
He invested £60,000 last summer in the firm when it launched a fundraising exercise through crowdfunding platform Crowdcube. He says: ‘I like the way these platforms give ordinary investors like me who have saved up a bit of money over time to get a chance to invest directly in a fast-growing company.’ He understands he could lose the lot if the business fails but says the pain would be reduced because the Fantoo investment is eligible under the Enterprise Investment Scheme.
He says: ‘So long as we don’t sell before three years are up we will get any gains free of capital gains tax. And you also get income tax relief of 30 per cent, which reduces the cost of the investment and the potential downside.’
Colin, married to accountant Sarah with three grown-up children, says: ‘Hopefully it will be a nice nest-egg for retirement.’