Data from the UK-based app developer indicates that around 2,600 UK smaller companies received almost £1.4bn ($2.2bn, €1.9bn) of EIS funding in 2013-14.
EIS offers generous tax breaks to encourage investment in small, unquoted companies.
Companies listed on the alternative investment market are also eligible for inclusion in EIS, meaning investors have greater choice and can potentially invest in more established companies with a longer track record.
“Tax efficient investment strategies have been at the top of many investors’ wish lists since the UK Government’s pension reforms gave them the freedom to look for alternatives to traditional annuities,” said Hassan.
“But despite their rapid growth, EIS have also made headlines for the wrong reasons, with a couple of recent high profile failures making would-be investors more cautious on the sector.”
Appbox announced it would be launching an app to help investors choose an EIS.
