Meta Description: Identify the top 36 EIS funds in 2024 to pitch your UK startup and secure the investment needed for your company’s next growth phase.
Introduction
Launching and scaling a startup in the UK is an exciting journey, yet securing the necessary funding remains a significant hurdle for many entrepreneurs. Enter the Enterprise Investment Scheme (EIS), a government-backed initiative designed to bridge this gap by attracting investors to high-potential startups through enticing tax incentives. In 2024, numerous EIS funds are actively seeking promising UK startups to support their growth. This guide highlights the top 36 EIS funds you should consider pitching to secure the investment needed for your next growth phase.
What is EIS?
The Enterprise Investment Scheme (EIS) is a UK-centric investment framework that encourages investors to commit funds to startups with substantial growth potential. In return, investors receive attractive tax breaks, making it a mutually beneficial arrangement for both parties.
Benefits for Investors
Investing through EIS offers several tax advantages, including:
- 30% Income Tax Reduction: Investors can reduce their income tax liability by 30% of the amount invested.
- Loss Relief: If the investment doesn’t perform as expected, investors can offset their losses against their income tax.
- Inheritance Tax Exemption: Investments held for at least two years are exempt from inheritance tax.
- Capital Gains Tax Exemption: Gains from the sale of EIS shares are free from capital gains tax.
Benefits for Founders
For startup founders, EIS is an attractive funding option because:
- Steadier Growth Profiles: EIS funds typically seek 5x-10x returns, allowing startups to focus on sustainable growth rather than rapid, high-risk expansion.
- De-Risked Investments: The tax incentives reduce the risk for investors, making them more willing to invest in your startup.
- Access to a Wider Investment Pool: EIS attracts a broad range of investors looking for tax-efficient investment opportunities.
Eligibility for EIS Investment
Not all startups qualify for EIS investment. To be eligible, your startup must meet specific criteria:
Geography
- UK-Based: The business must have a permanent establishment in the United Kingdom.
Raise Amount
- Non-Knowledge Intensive: Can raise up to £5 million annually and a maximum of £12 million over its lifetime.
- Knowledge Intensive: Allowed to raise up to £10 million annually and a maximum of £20 million over its lifetime.
Traction
While revenue isn’t always mandatory, investors look for:
- Strong Customer Interest: Evidence of demand for your product or service.
- Large Addressable Market: Potential for significant market penetration.
- Scalable Business Model: Ability to grow and expand efficiently.
- High Growth Potential: Prospects for substantial expansion and profitability.
Sector
- Eligible Sectors: All sectors except real estate & construction, professional services, and FCA-registered companies.
What You Need to Secure EIS Investment
Securing EIS investment requires preparation and a compelling pitch. Here’s what you’ll need:
Advanced Assurance
Obtain HMRC’s pre-approval of your company’s EIS eligibility. This assurance is crucial for instilling confidence in potential investors. Platforms like Oriel IPO can connect you with legal and tax professionals to facilitate this process.
Compelling Pitch Deck
Your pitch deck should effectively communicate your startup’s vision, traction, and growth potential. Highlight how your business aligns with EIS criteria and the benefits it offers to investors.
Financial Model
Develop a robust financial model that showcases attractive growth projections and a capital-efficient strategy. Clear and realistic financials help investors assess the viability and potential returns of your startup.
Top 36 EIS Funds to Pitch Your UK Startup in 2024
Securing the right EIS fund can make a significant difference in your startup’s trajectory. Here’s a curated list of the top 36 EIS funds to consider pitching your UK startup to in 2024:
Ascension Ventures
Location: London
Focus: Pre-seed and seed companies, especially ‘tech for good’ solutions.Blackfinch
Location: Gloucester
Focus: High-growth tech startups with £500k+ ARR.Britbots (British Robotics Scale-up)
Location: London
Focus: Early-stage robotics, AI, and automation companies.Calculus
Location: London
Focus: SaaS, healthcare, and entertainment sectors.Creator Fund
Focus: UK businesses with founding team members who are professors, PhDs, students, or recent graduates.EHE Ventures
Location: Manchester
Focus: Early-stage and growth investments in Artificial Intelligence.Empirical Ventures
Location: Bristol
Focus: Deep science companies in photonics, quantum hardware, life sciences, and robotics.Endeavour Ventures
Location: London
Focus: B2B Software companies with £1m — £4m pre-money valuation.Foresight Group
Focus: Deep tech and enterprise software Seed and Series A startups.Fuel Ventures
Location: London
Focus: Pre-Seed and Seed stage B2B and B2C companies.Haatch Ventures
Location: London
Focus: Pre-Seed and Seed B2B SaaS companies.Hambro Perks
Location: London
Focus: Technology, fintech, healthcare, environmental technology, and life science sectors.IW Capital
Location: London
Focus: Healthcare, education, and consumer goods, structuring creative growth funding.Love Ventures
Focus: Early-stage fintech, proptech, regtech, and consumer software companies.Mercia Asset Management EIS
Location: Henley-in-Arden
Focus: Tech, life sciences, and digital sectors.MMC Ventures
Location: London
Focus: Early-stage tech companies in fintech, healthtech, and B2B sectors.Oberon Private Ventures
Location: London
Focus: Tech, B2B SaaS, and data sectors.One Planet Capital
Focus: Early-stage companies focused on carbon reduction and climate change.Oxford Capital Partners
Location: Oxford
Focus: Digital health, climate tech, fintech, mobility, future of work, and retail.Oxford Innovation Finance
Location: Oxford
Focus: Disruptive science and next-generation technology industries.Oxford Technology
Location: Oxford
Focus: Early-stage tech companies.Par Equity
Location: Edinburgh
Focus: Northern-based Seed and Series A B2B and deep tech businesses.Parkwalk Advisors
Location: London
Focus: Science and tech sectors, especially those commercializing intellectual property.Portfolio Ventures
Location: London
Focus: FinTech, InsurTech, B2B SaaS, and enterprise software.Praetura Ventures
Location: Manchester
Focus: AI, gaming, healthtech, life sciences, and cybersecurity.Puma
Location: London
Focus: Early-stage companies across various sectors.Science Creates Ventures
Focus: Early-stage deep tech improving healthcare, quality of life, and the environment.Syndicate Room
Location: Cambridge
Focus: Sector-agnostic investments through their Access EIS fund.The British Design Fund
Location: London
Focus: Early-stage companies making an impact in the hardware space.The Side by Side Partnership
Location: London
Focus: Fast-growing consumer and B2B SaaS companies with £1m — £10m in revenue.TriplePoint
Location: London
Focus: Early-stage B2B software in fintech, data, AI, healthcare, vertical SaaS, and energy.Waterspring Ventures
Location: Wales
Focus: Companies creating high-productivity, high-wage jobs in Welsh communities.Westhill Capital
Location: London
Focus: Sector-agnostic early-stage companies.Vala Capital
Location: London
Focus: Early-stage companies focused on sustainability and social impact.Velocity Capital
Location: London
Focus: Early-stage consumer and technology companies.Venrex
Location: London
Focus: Innovative, tech-enabled businesses, primarily in consumer industries.
How Oriel IPO Can Help
Navigating the EIS landscape can be complex, but platforms like Oriel IPO are revolutionizing investment opportunities in the UK. As an innovative online investment marketplace, Oriel IPO facilitates connections between UK startups and investors through SEIS/EIS tax incentives without commission fees.
Why Choose Oriel IPO?
- Commission-Free Funding: Streamline your fundraising process without the burden of additional costs.
- Curated Investment Opportunities: Access a selection of vetted, tax-efficient investment options tailored to your startup’s needs.
- Educational Resources: Empower yourself with comprehensive guides and tools related to SEIS/EIS to make informed investment decisions.
- Community Support: Engage with a supportive network of entrepreneurs and angel investors to foster essential business relationships.
Oriel IPO’s subscription-based access tiers provide flexibility, ensuring that both novice and experienced investors can find value and support.
Conclusion
Securing EIS funding is a strategic move that can propel your UK startup to new heights. By targeting the right EIS funds and preparing a compelling pitch, you can access the investment needed to fuel your company’s growth. Remember, platforms like Oriel IPO can simplify this journey, providing the tools and connections necessary to succeed in the competitive investment landscape.
Ready to Elevate Your Startup?
Discover how Oriel IPO can help you connect with top EIS funds and secure the funding your startup deserves. Visit our website today to take the next step in your entrepreneurial journey!
