Introduction
Choosing the right business funding platform can feel like standing at a crossroads. On one side, you have established asset managers with deep pockets and heavyweight reputations. On the other, modern SEIS/EIS marketplaces that promise commission-free access, tax perks and a streamlined experience. Which one wins for UK startups? Spoiler: it depends on your goals, your runway and how much hand-holding you need.
In this article, we’ll break down:
- What traditional asset managers bring to the table
- Why commission-free SEIS/EIS marketplaces are shaking things up
- A head-to-head comparison so you can decide which business funding platform fits your journey
Whether you’re bootstrapping in Shoreditch or scaling in Edinburgh, we’ll help you cut through the noise and pick the right partner. Let’s dive in.
Traditional Asset Managers: An Overview
Asset managers have been around for decades. Think of them as the old guard of finance—they pool capital from institutions and high-net-worth individuals and invest it according to pre-set mandates.
Strengths of Asset Managers
- Deep expertise: These teams live and breathe markets. They’ve weathered crashes and booms.
- Wide networks: They tap pension funds, insurers and sovereign wealth funds.
- Strong due diligence: Expect multi-page reports, risk models and compliance checklists.
- Scale: Large funds can write hefty cheques, ideal if you need a £1m+ round.
For startups seeking significant ticket sizes, an established asset manager can be a safe harbour. Their reputation adds credibility. They often co-invest with other big names, which can turbocharge your valuation.
Limitations for UK Startups
- High fees: Management fees, performance fees and other hidden charges. Your investors pay up to 2% AUM plus 20% of returns. That trickles down to you.
- Slow process: Months of meetings, face-to-face pitches and legal wrangling.
- One-size-fits-all mandates: You may not fit neatly into their technology or life-sciences bucket.
- Gatekeeping: These platforms often favour later-stage or highly vetted opportunities. Early-stage startups can fall through the cracks.
If you’re an early-stage founder looking for agility and clarity, a heavyweight asset manager might feel like an oil tanker: powerful but not nimble.
The Rise of Commission-Free SEIS/EIS Marketplaces
Enter the new wave of business funding platforms built for startups. These marketplaces connect you directly with angel investors seeking SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) perks. Oriel IPO is a standout here—no commission on funds raised, just a transparent subscription model that keeps costs predictable.
What are SEIS and EIS?
- SEIS: Investors get up to 50% income tax relief on investments up to £100,000 per tax year. Plus capital gains exemptions.
- EIS: Income tax relief of 30% on investments up to £1,000,000. Loss relief and deferral options too.
- Both schemes turbocharge early-stage investing by cutting risk and boosting net returns.
For investors, tax incentives are the headline act. For founders, it broadens the pool of angels willing to write smaller cheques, making it easier to close a round.
Why Commission-Free Marketplaces Matter
- Zero deal fees: Platforms like Oriel IPO ditch the percentage cut, so you keep more of the investment.
- Curated opportunities: Only eligible startups qualify, reducing investor due diligence time.
- Educational resources: Webinars, guides and tools like Maggie’s AutoBlog help you craft compelling pitches and SEO-optimised content for your fundraising campaign.
- Speed: Digital onboarding, document self-serve portals and e-signatures mean you can launch your campaign in days, not months.
This new breed of business funding platform is built for speed, transparency and cost-efficiency. It’s a lifeline for SMEs strapped for cash and founder hours.
Head-to-Head: Asset Managers vs Commission-Free Marketplaces
Let’s put these options side by side across key dimensions.
Fees and Pricing
Asset Managers
– Management fees: ~2% AUM
– Performance fees: ~20% of profits
– Legal costs: High
Commission-Free Marketplaces
– Subscription: £X–£Y per month
– No deal fees on funds raised
– Lower legal/trust costs
Accessibility and Speed
Asset Managers
– Rigorous vetting
– Slower decision cycles (8–12 weeks)
– In-person meetings
Commission-Free Marketplaces
– Online onboarding
– Campaigns live in days
– Self-serve due diligence toolkit
Expertise and Curation
Asset Managers
– In-house analysts
– Macro-to-micro insights
– Less focus on SEIS/EIS specifics
Commission-Free Marketplaces
– Tax-focused curation
– SEIS/EIS compliance checks
– Dedicated guides on UK Government schemes
Key Considerations for UK Startups
Choosing the right business funding platform is about matching your needs to what each model offers. Here are some pointers.
Tax Incentives and Eligibility
- Check SEIS/EIS eligibility early.
- Use official resources like the UK Government SEIS/EIS Overview.
- A commission-free marketplace often vets this for you, cutting errors and delays.
Platform Support and Education
- Do you need hand-holding? Asset managers provide deep advice but at a premium.
- Commission-free sites like Oriel IPO offer bite-sized resources—think webinars, how-to templates and Maggie’s AutoBlog integration to automatically generate targeted content for your investor pitch.
Network and Follow-On Funding
- Asset managers open doors to big institutional rounds.
- Marketplaces introduce you to a network of angels who may follow on via smaller EIS top-ups.
How to Choose the Right Business Funding Platform
Here’s a simple decision tree:
- Assess Your Stage
– Pre-seed? SEIS-focused marketplaces often win.
– Series A+? Asset managers may offer larger checks. - Define Your Budget
– Flat subscription vs % fees. Crunch the numbers. - Trial the Platform
– Sign up for trial memberships. See conversion rates to paid plans.
– Evaluate user interface and support—speed matters. - Consider Long-Term Support
– Do you want ongoing advisory? Asset managers do that.
– Do you prefer self-serve tools and community forums? Commission-free sites excel here.
Choosing a business funding platform is a bit like picking a race car. You want something that fits the track. A slick, commission-free marketplace is your Formula 1 car for early sprints. An asset manager is more like a heavy-duty rally truck built for endurance and scale.
Conclusion
There’s no one-size-fits-all. If you need speed, cost-efficiency and deep SEIS/EIS support, a commission-free business funding platform like Oriel IPO is compelling. If you’re chasing multi-million-pound rounds with institutional backing and personalised advice, traditional asset managers still hold sway.
Ultimately, weigh fees, speed, expertise and tax support. And remember—the right platform should amplify your strengths, not weigh you down.
Ready to see commission-free funding in action?
