How long should I hold EIS shares, and when can they be sold?

EIS investments are long-term by nature. To retain the available tax reliefs, investors must hold their EIS shares for a minimum of three years.

Investors will usually receive their money back when a portfolio company exits, typically through a sale to another business or, less commonly, an Initial Public Offering (IPO). Investors have no control over when an exit occurs. While exits are typically targeted within four to seven years, this may be longer and the companies within a portfolio are likely to exit at different times.

Alternatively, investors may be able to sell their shares to a private buyer. However, the secondary market for EIS shares is limited and it may not be possible to find a buyer.

For a clear overview of how the Blackfinch Ventures EIS Portfolios work and the tax benefits they offer, watch our Blackfinch EIS Unpacked video.