Mark Waldron, Head of Entrepreneurial Services recently featured in The Irish Times Special Report on the new Angel Investor Capital Gains Tax Relief (CGT) Relief.
One source of funding for start-up and growth-phase companies that has been growing in importance in recent years is angel investment. Business angels are typically entrepreneurs who invest capital in early-stage businesses in return for a minority stake. But they bring a lot more than money, they also bring their time, skills, contacts and business knowledge to bear to support the companies on their growth paths.
Waldron agrees that the new tax relief is very appealing to angel investors, however, also points out to compliance complexity involved in claiming the same.
For founders, the main routes for securing angel investment include personal contacts, structured angel groups such as HBAN [Halo Business Angel Network] Ireland, university spin out funds and referrals through advisers. To qualify for the new Angel Investor Relief, companies must be innovative SMEs, secure Revenue certificates and issue ordinary shares before the December 2026 deadline.
The pitfalls can be the time and cost involved in preparing for investment, including Revenue certification, legal structuring and investor-ready financials, along with restrictions on share terms and the risk that not every angel will be the right strategic fit.
Read the full article by Barry McCall in the Irish Times Corporate Finance Special Report by clicking the button below.
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