The number of young millionaires who are products of the so-called ‘Generation Entrepreneur’ rose by 6 per cent in just 12 months, with the UK now home to 340 millionaires under the age of 30.
Generation Y are making millions for the UK
Private investment firm Radius Equity has found that between April 2012-13, the number of young millionaires under 30 rose from 320 to 340, while the total number of UK taxpayers with an income over £1m per annum fell by 4 per cent, from 10,120 to 9,730.
Radius attributes this rise to the increase in tech entrepreneurs who have immersed themselves in the world of FinTech during the financial crisis.
‘Generation of budding serial entrepreneurs’
Many of these tech wizkids specialise in app-development, with Radius using Nick D’Aloisio as an example.
The London-born start-up owner is the man behind Summly, an app that summarizes news articles into a format more suitable for smartphones.
In 2013, D’Aloisio sold Summly to Yahoo for an estimated $30m. Radius also found that the number of millionaires under 30 has increased, rising 3.2 per cent to 3.5 per cent of all UK taxpayers with an income over £1m.
‘‘This is a generation of budding serial entrepreneurs keen to reinvest the wealth they’ve amassed from the success of their own business into a new wave of successful start-ups,’’ explained Gary Robins, director of Radius Equity.
The Enterprise Investment Scheme (EIS) offers investors potentially strong returns from smaller private companies at a reduced level of risk because of the tax breaks provided by the Government.
‘‘They are using EIS and other vehicles as a way to invest in a range of other growth companies. They normally look to invest in sectors that they understand or have an interest in – so we are seeing a lot of investment in the technology, retail and leisure sectors through the EIS,’’ continued Robins.
This research follows a survey released by accountancy group UHY Hacker Young, which found that young tech entrepreneurs are ditching the Silicon Roundabout in favour of cheaper Central London locations.