Hi
Most of the previous comments above are accurate. I've had a small amount of money in the Davy scheme every year since 2014- except for last year when they were oversubscribed by early December and wouldn't take my contribution. So there's obviously a demand for it.
Over the years there have been examples of companies going bust (eg Maximum Media), companies failing to grow fast enough to meet the criteria for the second tranche of tax relief, companies taking several years to get to a point where they can repay the EIIS investment (ie cash out the investors) etc. There have been a couple of big winners where the company was taken over by a multinational which resulted in a nice return.
Keeping tabs on the tax due is a bit of a pain, but I guess its fine if you can outsource that to your accountant. Im starting to wonder if its worth the hassle though.
The types of companies are widest spread of SMEs you could think of- sandwich makers, tool designers, guys with a couple of petrol stations, nursing homes, wind farms, etc. The fund every year usually splits the investment into 4-5 different companies, so the risk is spread, but caution, not that broadly! 5 Irish SMEs isnt diversification
Davy/BDO publish the prospectus around December 1 usually, and if last year is anything to go by, you'll need to get your application in quickly.
Goodbody/Baker Tilly have their own fund, I think its more recent than Davy/BDO, and the min investment was/is 20k. Too rich for my blood.
Hope that helps people.