Scotland is a hive of activity for Plan Bee – a Seed Enterprise Investment Scheme start-up that manages bee-keeping for companies with green credentials.
The company’s plan A was to seek £130,000 funding through SEIS, which was accomplished in double quick time.
Kelvin Capital offered £65,000 under SEIS, which was quickly matched pound-for-pound by the Scottish Investment Bank.
SEIS offers investors effective tax breaks that are more advantageous than just about any other relief.
The firm looks after 50 bee hives placed in the grounds of sponsoring firms around Glasgow.
The aim is to counter the dramatic nationwide drop in numbers of the insect which scientists argue are vital to the pollination of flowers.
The fresh start firm wants to rapidly roll-out more hives to business – up to 160 around the Glasgow area.
Tax breaks
Sponsors are offered a couple of dozen branded jars of honey in return for taking part in the project.
Company director Warren Bader argues that hosting a hive is one of the quickest ways a firm can go green.
“Taking on a hive involves giving over a small plot of often disused land. We manage the hive and in return, the business gets some produce back from their bees plus community involvement and some good publicity,” he said.
Organisations with hives include Caledonian University, Glasgow; local Holiday Inn hotels and Royal Troon Golf Club.
Another start-up in Scotland that wants investors to tune into SEIS tax benefits is Eklipse Sports Radio.
The station is pitching for £40,000 for a 20% share of the business under SEIS on crowd funding platform Crowdcube.
Journalist and director Spencer Pryor explained the new radio station will broadcast across Glasgow, Edinburgh and the surrounding Central Belt.
The focus is on football, but up to 20 other sports will be covered, including rugby, ice hockey and basketball along with a mix of music.
Start up hub
Eklipse has SEIS pre-approval from HMRC.
“Banks say that they help small businesses and start-ups, but the opposite is true. They are not really interested whether you are a radio station or in any other sector,” said Pryor.
“Our project has stalled because of this and we are appealing for private investors to put their hands in their pocket to help us – and at the same time they can pick SEIS tax breaks.”
More than 15,000 companies have started in London’s Tech City in the past year.
The area just to the north of the City, around Old Street, has seen more new businesses than anywhere else in Britain, according to a report from accountancy firm UHY Hacker Young.
Tech City is promoted by the government as a hub for internet and technology businesses.
