Why SEIS and EIS Matter in the UK
If you’re an SME or an experienced investor, you’ve probably heard of SEIS and EIS. These government-backed schemes offer juicy tax reliefs for early-stage equity stakes. But navigating the maze of eligibility criteria, deal flow and portfolio balance can feel like learning a new language.
That’s where SEIS investment lessons from 140+ deals come in. When seasoned angels like Lenny Rachitsky review their track record, patterns emerge. We can shortcut years of trial and error by studying real surprises and proven tactics.
In this post, you’ll discover:
– The biggest surprises from 140+ early-stage rounds.
– Practical tips to build a balanced SEIS/EIS portfolio.
– How to leverage Oriel IPO’s commission-free platform and resources.
– A bonus tool—Maggie’s AutoBlog—to keep your investor updates sharp.
Let’s dive into these SEIS investment lessons and get you investing with confidence.
Seven Surprises from 140+ Deals
Angel investing often feels romantic: you spot a brilliant founder, throw in a cheque and ride their rocket ship to glory. Reality? Most startups flop, and luck plays a huge role. After reviewing over 140 deals, here are the top surprises:
1. Your Best Bets Are Often the Ones You’re Least Sure About
I rated each investment as OK, Good or Great when I signed up. Only a third of my top winners were in the Great bucket. If I’d only backed those, I’d have missed 66% of my biggest paydays.
“A single 100x or 1,000x deal returns your fund. It’s nearly impossible to know which one will.”
— Julia Lipton, investor
Lesson: If a startup has a plausible 100x path, back it—even on low conviction. That’s one of the most counter-intuitive SEIS investment lessons you’ll learn.
2. Investors, Not Founders, Drive Deal Flow
Early on, I said yes to friends’ startups. Now, most of my best rounds come via fellow angels or solo VCs. Building a network of active investors multiplies your access.
Takeaway:
– Offer value: introduce your contacts to potential hires or customers.
– Share hot deals swiftly.
– Cultivate a small circle (3–5) of trusted angel pals.
“Sharing deals with other investors keeps you top of mind. It’s simple currency.”
— Todd Goldberg, entrepreneur and investor
3. Hot Deals Become Currency
A “hot” round isn’t just hype. Over two-thirds of my biggest winners were feet-wet rounds buzzing with competition. And most hot deals I joined went on to thrive.
That said, don’t ignore the under-the-radar gems—about a third of my standouts were off the beaten track.
4. Access Beats Picking
Access, not clairvoyance, drives returns. If you’re swimming in great deal flow, you’ll stumble into winners. Judgement helps, but it’s secondary.
“Being in the pool of the best opportunities and picking randomly beats seeing few deals and picking expertly.”
— Jack Altman, Lattice CEO
5. Become the Founder’s Favourite Cap-Table Mate
The fastest way to more invites? Be someone founders want alongside them. You can offer:
– Introductions to press, hires and experts.
– Hands-on help with strategy or customer intros.
– A track record of constructive feedback.
When founders fight for your capital, you’re in the VIP queue for hot SEIS/EIS deals.
6. Portfolio Construction Matters
A balanced SEIS/EIS approach looks like:
– 10–15 small checks in diverse sectors.
– 50% in hot, oversubscribed rounds.
– 30% in founders you know personally.
– 20% in wild-card bets.
Aim for 15–20 investments to let winners carry the losses.
7. Tax Relief Is a Powerful Tailwind
SEIS offers up to 50% income tax relief and exemption from capital gains on growth. EIS adds 30% relief and deferral on gains.
Use these incentives to offset inevitable flops. That’s why we love SEIS investment lessons—they show you how to tilt odds in your favour.
Building a Robust SEIS/EIS Portfolio
Once you internalise those surprises, it’s time to structure your portfolio. Here’s how:
Embrace Low-Conviction Plays
Set aside up to 30% of capital for bets you feel only Good about. Those often become your surprises.
Balance Hot Rounds with Under-the-Radar Gems
- Hot deals: backing competition validates your picks.
- Hidden gems: protect you when the market froths or founders pivot away from the herd.
Maximise Tax Benefits
Coordinate SEIS and EIS slices to offset gains and losses:
– Front-load SEIS across several tax years.
– Use EIS to defer or reduce capital gains from other assets.
Streamline Your Investing with Oriel IPO
Looking for a smoother ride? Oriel IPO offers:
- Commission-free funding: subscription fees only, so startups and investors keep 100% of capital and returns.
- Curated, tax-efficient opportunities: every deal meets SEIS/EIS eligibility, saving you hours of due diligence.
- Comprehensive educational resources: guides, webinars and expert tips to hone your SEIS investment lessons.
Plus, if content creation distracts you, try Maggie’s AutoBlog—an AI-powered platform that automatically generates SEO-optimised blog posts. Keep your investor updates and thought-leadership fresh without hiring an in-house team.
Getting Started: Practical Steps
- Sign up on Oriel IPO’s platform.
- Complete your investor profile.
- Browse SEIS/EIS-qualified startups.
- Join live webinars and download the official SEIS/EIS guide.
- Start small: place your first £1–2k check in a deal that excites you.
- Build relationships with co-investors and founders.
As you grow, revisit these SEIS investment lessons and adjust your checklist. Consistency matters more than perfection.
Final Thoughts
Angel investing is part art, part grit. You’ll make mistakes. You’ll miss big winners. But by applying these SEIS investment lessons, you’ll tilt the odds in your favour.
Ready to turn insights into action?
