Why You Need an EIS Investor Checklist
• You get tax perks (30% relief under EIS, 50% under SEIS).
• You tackle risk head-on.
• You pick winners, not duds.
Without a robust EIS investor checklist, you might overlook critical red flags: weak teams, shaky models or hidden liabilities. It’s like buying a car without a test drive—unthinkable.
Understanding SEIS & EIS Basics
Before we dive into the questions, let’s recap:
- SEIS (Seed Enterprise Investment Scheme):
• Up to 50% income tax relief
• CGT exemption on gains - EIS (Enterprise Investment Scheme):
• Up to 30% income tax relief
• CGT deferral and IHT relief
Both can turbocharge returns. But don’t let tax shiny bits blind you. Use our EIS investor checklist to keep investment quality front and centre.
EIS Investor Checklist: Company & Market (Q1–Q9)
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What does the business do?
Get a 30-second elevator pitch. If it’s jargon-laden, ask for plain English. -
Sector analysis
Is this market on fire or ice? Look at growth rates, regulatory shifts and funding trends. -
Customer problem
Does the startup solve a real headache? Or is it a “nice-to-have” gadget? -
Genuine pain point
Widespread issue or niche whimper? Bigger pain equals bigger opportunity. -
Unmet market need
Find the gap. If it’s too crowded, think twice. -
Product–market fit
Are there paying customers or just prototypes? -
Target audience
B2B? B2C? Hybrid (B2C2B)? Match channels to customer behaviour. -
Market size (TAM, SAM, SOM)
Know your numbers. Don’t settle for vague billion-pound totals. -
Trends & tailwinds
AI buzz? Regulatory support? Brexit effects? Map these before you commit.
“A good EIS investor checklist is like a weather forecast. You want to know when it’s sunny and when to grab an umbrella.”
EIS Investor Checklist: Team & Governance (Q10–Q16)
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Founders’ track records
Previous exits? Failed ventures? Both teach lessons—dig in. -
Team composition
Do they cover tech, sales, finance? A gap in any area is capital wasted. -
Founders’ coachability
Will they listen to advice or call it “micromanagement”? -
Hiring plan
Hiring spree or skeleton crew? Headcount plans reveal true ambitions. -
Board setup
Established B2B SaaS board? Or just family and friends? -
Board evolution
Who joins next? Do they add strategic firepower? -
Strategic advisers
Sector experts can be gold. But they must be hands-on, not just names on a slide.
Pro tip: A smart EIS investor checklist flags both who’s on the team now and who’s signing up next.
EIS Investor Checklist: Business Model & Finances (Q17–Q23)
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Business model clarity
Subscription, transaction fee, marketplace cut? Keep it simple. -
Scalability
Can costs stay flat while revenue climbs? -
Competitor landscape
Direct and indirect rivals. Map them like chess pieces. -
Unique selling point
What’s their trump card? IP, network effects, proprietary data? -
IP protection
Patents filed? Trademarks in place? Guard the crown jewels. -
Valuation sanity check
Compare VC, Berkus, Scorecard methods. Three methods, one ballpark. -
Use of funds
Clear road map for your cash. Don’t fund a vague “growth strategy.”
“Revenue is vanity, profit is sanity—but cash flow pays the bills.”
Explore our curated opportunities
EIS Investor Checklist: Tax Relief & Exit Strategy (Q24–Q26)
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Exit roadmap
Trade sale, IPO, share buy-back? Make sure it lines up with your hold horizon. -
Available tax reliefs
SEIS vs EIS perks. Loss relief. CGT deferral. Inheritance tax breaks. -
Risk vs return
Long hold? Illiquid? But imagine outsized gains plus tax maths.
Use this final part of the EIS investor checklist as a reality check. Does the reward justify the risk?
How Oriel IPO Helps You Tick Every Box
We know ticking off 26 questions feels daunting. That’s why Oriel IPO built a commission-free, tax-focused investment marketplace.
- Curated, tax-efficient deals: only startups pre-vetted for SEIS/EIS eligibility.
- Educational resources: webinars, guides and checklists (yes, like this one) to sharpen your due diligence.
- Subscription model: predictable fees, not hidden commissions.
No surprise charges. No financial advice conflicts. Just clear, actionable intel.
Putting Your EIS Investor Checklist into Action
- Download this list.
- Use it at every pitch meeting.
- Score startups out of 5 for each question.
- Share your findings with fellow investors or an adviser.
It’s simple. Consistency beats instinct every time.
Conclusion
A robust EIS investor checklist is your ticket to more confident startup investing. It helps you focus on fundamentals, not hype. And when you combine it with Oriel IPO’s commission-free, curated platform, you get a streamlined process from due diligence to deal closing.
Now it’s your turn. Refine your checklist. Dive into those deck slides. And partner with a platform that has your back.
