Understanding SEIS/EIS for Procurement Startups
Launching a procurement startup is tough. You need technology, customers and—above all—funding.
That’s where SEIS and EIS step in.
What is SEIS?
- SEIS stands for Seed Enterprise Investment Scheme.
- It’s a UK government tax relief designed to spark early-stage investment.
- Investors can claim up to 50% income tax relief on investments up to £100k.
- Plus, there’s Capital Gains Tax exemption on SEIS shares held at least three years.
Why SEIS matters for procurement startup funding
Procurement platforms often need hefty upfront costs:
– Building AI-driven search tools.
– Designing compliance workflows.
– Recruiting vendor networks.
SEIS reduces the investor’s risk.
Less risk means more angel interest.
More angel interest means faster cash inflow.
Faster cash inflow means your procurement startup funding round closes sooner.
Civic Marketplace: A Procurement Startup Funding Case Study
Civic Marketplace isn’t a UK startup. It’s Texas-based. Yet its journey offers valuable pointers for our scene in Europe. In late 2024, they closed a $3M seed round. Let’s unpack that and see what UK founders can borrow.
The £3M (or $3M) Seed Round
- Lead investor: Kindred Capital.
- Participating angels: Andy Phillipps (ex-Priceline Int’l CEO), Sophie Adelman (Multiverse co-founder).
- Other backers: Avalanche VC, regional angels.
Key takeaway: they bundled institutional VCs with seasoned angels.
That mix sent a strong signal.
Key Success Factors
- Clear mission
Civic Marketplace pitched a simple goal: speed up procurement for councils. - Tech edge
They promised AI-powered search. Perfect for beat-the-clock local authority teams. - Strategic partnerships
Teaming up with NIGP Code and Consulting added trust. - Early customer wins
A deal with North Central Texas Council of Governments validated demand.
Lessons for UK Founders
- Nail your value prop. Don’t just say “we’re better”. Show how you save time or money.
- Combine tech with trust. Offer AI features, but also strong compliance frameworks.
- Seal early deals. A single council or agency contract is worth more than ten small pilots.
- Rally a top-tier lead investor. It’s social proof.
At this stage, you might wonder how to replicate this success in the UK. That’s where a commission-free, tax-efficient platform can supercharge your procurement startup funding journey.
How Oriel IPO Accelerates Procurement Startup Funding
You get the SEIS benefits. You get the EIS follow-up for larger raises. You get a curated marketplace—no clutter. And best of all: no commission on funds raised.
Commission-Free Marketplace
- No slice taken from your SEIS/EIS round.
- Unlimited investor pitches once you’re onboard.
- You keep all the capital you secure.
Curated, Tax-Efficient Investment Options
- Investors only see vetted startups.
- Each listing highlights SEIS/EIS benefits up front.
- Clear tax breakdowns: “Here’s your 50% relief.”
- Matchmaking based on sector, stage, and funding needs.
Educational Resources and Tools
We know SEIS paperwork can look like legal spaghetti. So we built:
– Guides on SEIS/EIS eligibility.
– Webinars with tax advisors.
– Templates for investor decks and round terms.
And if you need snappy SEO content to boost your site’s visibility—try Maggie’s AutoBlog. It whips up targeted blog posts so you can focus on building software, not writing.
Best Practices for Securing SEIS Funding
Whether you’re in Birmingham or Edinburgh, these steps will cut your path to procurement startup funding:
- Start early
Map out SEIS criteria before you pitch. - Show traction
Even a pilot with a small agency proves your tech works. - Be transparent
Publish clear figures on investment amounts, use of funds and timelines. - Leverage networks
Tap local enterprise zones, angel syndicates, regional Economic Development offices. - Tell your story
People invest in people. Share the why behind your procurement journey. - Polish your deck
Make it short, visual and jargon-free.
Conclusion
Securing multi-million-pound SEIS rounds is no walk in the park. But Civic Marketplace’s playbook shows it’s doable. Nail your mission, prove demand, and align with savvy investors. Then leverage a commission-free platform like Oriel IPO to streamline the process.
Ready to supercharge your procurement startup funding? Get on a platform that puts your growth first.
