List of SEIS funds with contact details + full guide
SEIS funds can be good for both investors and startups.
For investors, they offer significant tax benefits, including income tax relief, capital gains tax exemption, loss relief, and inheritance tax relief. For startups, they encourage early-stage investment, providing essential capital for growth and innovation.
This ressource starts with a list of active SEIS funds and continues with an in-depth guide to help you navigate the UK SEIS fund ecosystem.
|Id||SEIS Funds||Investor details||City||Country|
3 Sisters Ventures (2 contacts 🔒)
Air Street Capital (2 contacts 🔒)
Antler (65 contacts 🔒)
Archangels (5 contacts 🔒)
Battery Ventures (4 contacts 🔒)
Blackfinch Ventures (6 contacts 🔒)
Btomorrow Ventures (8 contacts 🔒)
Cardiff Capital Region (5 contacts 🔒)
Chalfen Ventures (1 contacts 🔒)
Cherry Ventures (15 contacts 🔒)
CircleRock Capital (2 contacts 🔒)
Clarendon Fund Managers (9 contacts 🔒)
Concept Ventures (8 contacts 🔒)
DSW Ventures (3 contacts 🔒)
Earlybird Venture Capital (5 contacts 🔒)
Elbow Beach Capital (7 contacts 🔒)
Environmental Technologies Fund (13 contacts 🔒)
EQT Ventures (36 contacts 🔒)
Eterna Blockchain Fund (5 contacts 🔒)
Exceptional Ventures (9 contacts 🔒)
Fasanara Capital (10 contacts 🔒)
First Minute Capital (19 contacts 🔒)
FirstMonday VC (2 contacts 🔒)
Forward Partners (7 contacts 🔒)
Fuel Ventures (10 contacts 🔒)
GameTech Ventures (3 contacts 🔒)
Hoxton Ventures (3 contacts 🔒)
Moguntia Capital (1 contacts 🔒)
Passion Capital (5 contacts 🔒)
Playfair Capital (8 contacts 🔒)
Seedcamp (6 contacts 🔒)
Spark Venture Management (3 contacts 🔒)
Walking Ventures (3 contacts 🔒)
|More investors...||Full investor database||All||All|
Click here for the full list of 462+ VC funds in the UK
In the next sections you will get to know everything about SEIS funds:
An SEIS fund refers to an investment scheme in the United Kingdom known as the Seed Enterprise Investment Scheme. This government-backed program, initiated in 2012, is designed to encourage investment in early-stage businesses by offering various tax reliefs to individual investors.
An SEIS fund is essentially a pool of such investments, managed by a fund manager. The fund manager will select eligible startup companies to invest in, following the rules and guidelines laid out by the UK government.
Here are some of the major tax reliefs under the SEIS scheme:
Investors can claim income tax relief of 50% on investments up to £200,000 per tax year.
If the shares are held for at least three years, any gain is free from capital gains tax.
If the company fails, the investor can claim loss relief. This can be a significant advantage because it lowers the actual at-risk capital.
Shares in SEIS eligible companies will typically be outside of an investor's estate for inheritance tax purposes if held for at least two years.
If an investor has paid capital gains tax in the last three years, they can claim to defer this when they reinvest the gain into an SEIS company.
As with any investment, investing in an SEIS fund carries risks, and the specific benefits can vary depending on the investor's individual tax circumstances. Therefore, it's advisable to seek professional financial advice before investing.
For a company to apply for the Seed Enterprise Investment Scheme (SEIS) in the UK, it needs to meet specific criteria and follow certain steps. Here is an overview:
The company must be a startup or an early-stage company. It must have fewer than 25 employees, assets of less than £350,000, and it must not have been trading for more than two years.
The company can raise up to £250,000 under the SEIS scheme.
The company submits a compliance statement to HM Revenue & Customs (HMRC) using form SEIS1. This can only be done after the company has been trading for at least four months or has spent at least 70% of the SEIS funds.
If everything checks out, HMRC will provide an authorization that the company can distribute to its investors. The company will then receive SEIS2 and SEIS3 forms from HMRC.
Using the SEIS3 forms, the company provides tax relief certificates to its investors. The investors can then claim tax relief on their SEIS-eligible investments.
This process can be complex, and the eligibility rules and application steps can change. It's recommended to seek professional advice to ensure compliance with all the relevant regulations and to maximise the benefits of the scheme.
Let's break down the Seed Enterprise Investment Scheme (SEIS) with a numerical example.
Please note that this is a simplified example, and actual results may vary depending on various factors including the individual's tax situation (check with your tax lawyer first).
Step 1 - Assume you're an investor who puts £10,000 into an SEIS-eligible company. The SEIS program allows you to claim 50% income tax relief on this investment, which is £5,000. So if your income tax bill for the year was £20,000, with your income tax relief, it would now be reduced to £15,000.
Step 2 - Let's say the company does well and the value of your shares doubles to £20,000 over three years. If you then sell your shares, the £10,000 gain would typically be subject to Capital Gains Tax. However, under SEIS, this gain is exempted from the tax as long as you've held the shares for at least three years.
Step 3 - If the company does not do well and your investment becomes worthless, you can claim loss relief. Assume that your marginal tax rate is 45%. The loss on the investment, after considering the initial income tax relief, is £5,000 (since you received £5,000 back in income tax relief, your actual loss is £5,000). You can claim loss relief on this £5,000 at your marginal tax rate, reducing your income tax bill by a further £2,250 (£5,000 * 45%).
Step 4 - Let's assume you had previously sold an asset and made a capital gain of £10,000, on which you paid capital gains tax. If you reinvest this gain into an SEIS eligible investment, you can claim to defer the capital gains tax that you paid. This effectively reduces the cost of your investment.
Whether you should invest in a Seed Enterprise Investment Scheme (SEIS) depends on your individual circumstances, financial goals, risk tolerance, and the specific opportunities available to you. Here are some factors to consider:
Potential Advantages of SEIS Investments:
SEIS provides significant tax reliefs. These include income tax relief, capital gains tax exemption, loss relief, and inheritance tax relief, which can help to offset some of the risk associated with investing in early-stage businesses.
Early-stage companies might offer higher potential returns than more mature companies if they succeed, given their capacity for rapid growth.
Potential Disadvantages of SEIS Investments:
SEIS-eligible companies are typically startups or very early-stage businesses, which are often riskier than more established companies. There is a significant risk that the company could fail, resulting in a total loss of your investment.
SEIS shares are typically not traded on a public exchange, meaning they can be difficult to sell. You may need to hold onto your investment for an extended period, potentially without receiving any dividends.
The rules around SEIS investments can be complex, particularly when it comes to claiming tax reliefs. Mistakes can result in unexpected tax liabilities.
Given the above, SEIS investments can be a good fit for investors who are comfortable with high-risk investments, understand the specific opportunities and risks of the businesses they are investing in, and have a tax liability against which they can offset the tax reliefs.
Certain individuals are restricted from investing in the Seed Enterprise Investment Scheme (SEIS) due to specific rules set out by the UK government. These are intended to ensure that the tax reliefs are not exploited, and that they genuinely encourage investment in early-stage companies. Here are some categories of individuals who cannot invest:
Individuals are considered connected to the company and are not eligible for SEIS relief if they are a partner, director (this does not include non-executive directors), or employee of the company in which they're investing, or a partner, director, or employee of a partner of that company.
Individuals who own more than 30% of the shares, voting rights, rights to assets in a winding up, or control over the company are considered to have a substantial interest and are not eligible for SEIS relief.
The restrictions on connected persons and substantial interest also apply to associates of the investor. Associates include business partners, trustees of any settlement in which the investor or their spouse or civil partner is a settler, and relatives (spouse or civil partner, parents or grandparents, children or grandchildren; but not siblings).
The "3-year rule" for the Seed Enterprise Investment Scheme (SEIS) is generally related to company eligibility.
For the company:
To be eligible for SEIS, a company must not have been trading for more than 3 years at the time of the investment. This rule is designed to ensure that the SEIS benefits are targeting very early-stage, or 'seed', companies.
For the investor:
This is a type of tax relief that is available after holding SEIS shares for a minimum of three years. After this period, the shares generally become exempt from Inheritance Tax, which can be significant given that the standard rate is 40%. This means that if the investor dies, their estate would not have to pay Inheritance Tax on the value of these shares.
If you're a partner, director (except a non-executive director), or an employee of the company, you would be considered a "connected person," and you wouldn't be eligible for SEIS benefits if you invest in your own company.
Similarly, you can't hold more than 30% of the shares, voting rights, or rights to assets of the company in a winding up. If you exceed this limit, you would be considered to have a "substantial interest" in the company and you wouldn't be eligible for SEIS benefits.