How can I qualify as a Knowledge Intensive Company for EIS?

To qualify as a Knowledge Intensive Company (KIC), at the time of the investment your company must meet:

• The innovation condition: you must be creating or using IP to develop a product (or products) that you intend to become the company’s main business within the next 10 years.

 or 

• The skilled employee condition: you must have 20% of your full-time workforce qualified at Master’s level or above, carrying out research in a role that requires their academic expertise.

and

• The operating cost condition: you must have spent at least
• 10% of your operating costs on R&D in each of the 3 years preceding the investment, or
• 15% of your operating costs on R&D in one of the 3 years preceding the investment.

If your company is less than 3 years old, you must meet these expenditure percentages in the 3 years following the investment.

For KIC applications, it's best to attach a separate letter, detailing how you meet the requirements listed above. Your application must also include:

• Financials proving you meet the operating cost condition,
• Employee profiles for the skilled employee condition, and/or
• Patent records or a written evaluation from an independent expert for the innovation condition.

You should only apply as a KIC if the investment would otherwise break the normal qualifying rules. If this doesn’t apply, you do not need to apply as a KIC.

You can find more information on this within our guide to KIC criteria.