Raising startup capital in the UK… with or without SEIS/EIS
Raising startup capital in the UK can be one of the most disorienting and obstacle-laden environments for funding – with acronyms like SEIS and EIS thrown in for specific confusion. Whether you’re already SEIS/EIS-eligible, still figuring it out or have never heard of it, this guide walks you through how to raise funds effectively – and why investors care.
What are SEIS and EIS?
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) are UK government tax relief schemes that reward individuals who invest in early-stage UK businesses.
For investors, these schemes significantly reduce risk by offering:
Income tax relief (up to 50% for SEIS; 30% for EIS)
Capital gains tax exemptions on returns
Loss relief on failed investments
For founders, qualifying can unlock faster access to angel capital, especially at the pre-seed and seed stages.
Why investors ask about SEIS/EIS
If an investor asks, “Are you SEIS/EIS eligible?” what they’re really asking is:
“Will I get tax benefits if I invest in you?”
In the UK, many angel investors will only invest if you’ve secured SEIS/EIS Advance Assurance. For pre-seed and seed rounds, this can be a dealbreaker.
If you're not eligible (yet), it doesn’t mean you’re unfundable – but it does mean you'll need a more strategic approach.
If you are SEIS/EIS-eligible
Here’s how to maximise that status during your raise:
1. Secure Advance Assurance from HMRC
Before you approach investors, apply to HMRC for Advance Assurance. This is a letter confirming that your company is likely to qualify for SEIS or EIS once you raise. It can take up to 8 weeks from HMRC, but straightforward applications often come back within 3-4 weeks.
Why it matters: Investors don’t want “maybe”. They want paperwork.
2. Put your SEIS/EIS status front-and-centre
Highlight your SEIS/EIS status in your:
Pitch deck (usually on your “Ask” or “Funding” slide)
Outreach emails (e.g. “SEIS/EIS eligible” in subject line)
Data room and investor Notion page
Why it matters: Attention-grabbing can dramatically improve your reply rate with angel investors (especially if you’ve primed your investor outreach list).
3. Target the right investors
There are many angel syndicates, funds and solo angels who prioritise SEIS/EIS-qualifying deals (we list a few at the end of this article).
If you’re not SEIS/EIS-eligible
You’re not out of the game, you’re just playing a different one. Here’s our best tips for your approach:
1. Clarify why you’re ineligible
Typical reasons for ineligibility include:
You’re a non-UK-registered company
Your sector is excluded (e.g. banking, some property-based ventures)
You’ve raised more than the cap (£250k SEIS, £12m EIS lifetime)
You haven’t incorporated yet, or your company is too mature for the scheme
Be honest and upfront about your status, especially when approaching UK investors who might expect or prioritise eligible startups. It builds trust – and you can still be investable.
2. Use other incentives or narratives
Convertible notes/SAFE rounds: Delay the tax issue to a priced round later
US/Global VC appeal: Many international investors don’t care about SEIS/EIS – it’s a UK-only scheme
Grant-backed credibility: Show traction through Innovate UK or similar grants
Mission-driven investment: Some impact or climate-focused angels will invest regardless of SEIS/EIS if aligned with their thesis
3. Build a non-SEIS investor list
Or ask Pitchwits to help you customise yours. Focus on:
Early-stage VCs (especially sector-specific)
High-net-worth individuals (especially those with cross-border interests)
Family offices or angels used to US/European deals
Non-UK-based investors who wouldn’t benefit from UK tax reliefs anyway
Traps to avoid
Fudging your SEIS/EIS status. Saying you’re “planning to apply soon” is only helpful if you have a clear timeline and legal support.
Pausing your whole raise for paperwork. You can build investor interest while the HMRC process runs in parallel.
Assuming that SEIS = easy money. You still need a solid narrative, traction, and pitch materials.
Resources
Some of our favourite SEIS/EIS investors
Helpful Tools
SeedLegals: SEIS/EIS application support and legal docs
SEIS and EIS can unlock powerful investor incentives – but they’re not the only way forward. A well-structured round, a clear business case, and the right investor targeting can succeed with or without tax reliefs.
If you’re unsure how to incorporate your SEIS/EIS status into your pitch, we’re here to help.
Craft the right pitch for your business with Pitchwits
