A crucial source of funding for start-ups has collapsed as investors take fright over the coronavirus, putting thousands of promising young companies at risk.
Four of the biggest funds investing through the tax-efficient enterprise investment scheme (EIS), which is worth £2bn a year, have seen investments plunge by more than half since the start of the year.
In the past two weeks, as the lockdown has been enforced, overall funding has gone down by about 70%, according to the Enterprise Investment Scheme Association.
Vala Capital, an EIS investor, said funding in the most recent quarter was down 70% on last year. Wealth Club, another big EIS fund, said investment had dropped 62% in the past two weeks. Two more of the largest funds, Kuber and
