Why Every UK Startup Needs a Funding Playbook
You’ve got a brilliant idea. You’ve built a prototype. And now you need cash. The UK startup scene is brimming with opportunities—equity rounds, crowdfunding and government-backed schemes. Yet, making sense of them all? Overwhelming.
Enter our SEIS investment guide. Think of this as your map to:
- Accessing tax-efficient investment schemes
- Comparing equity vs debt vs crowdfunding
- Leveraging a commission-free platform like Oriel IPO
By the time you finish reading, you’ll know how to choose the right mix of funding for your growth stage. Ready? Let’s dive in.
1. Equity Funding: Why and How
Equity funding means selling shares in your business in exchange for capital. No monthly repayments. No interest. Just a slice of ownership.
Angel Investors vs Venture Capital
Angel Investors
• Wealthy individuals.
• Tend to invest £10k–£100k.
• Provide mentorship and introductions.Venture Capital Firms
• Pool money from institutions.
• Invest £100k–£10m+ across rounds.
• Rigorous due diligence but large tickets.
Equity deals can skyrocket growth—but they dilute your stake. Always ask:
“What support beyond cash will my investor offer?”
2. Crowdfunding: Tapping the Crowd
Crowdfunding has matured. You can choose between:
Equity Crowdfunding
- Raise funds by selling shares to many investors.
- Platforms: Crowdcube, Seedrs—or commission-free Oriel IPO.
- Perks: Broad investor base, marketing buzz.
- Consideration: Equity dilution, ongoing shareholder relations.
Reward-Based Crowdfunding
- Offer products or experiences instead of shares.
- Platforms: Kickstarter, Indiegogo.
- Perks: Validate your idea, build an early community.
- Consideration: Fulfilment logistics, no equity traded.
Both models can work in tandem—pre-sell with rewards, then scale via equity rounds.
3. Government-Backed Schemes: SEIS & EIS Demystified
The UK government wants you to innovate. That’s why it runs two major schemes:
Seed Enterprise Investment Scheme (SEIS)
Our SEIS investment guide wouldn’t be complete without SEIS. It’s tailored for very early-stage startups, offering:
- 50% Income Tax Relief on investments up to £100k per investor.
- Capital Gains Tax Exemption on disposal after 3 years.
- Loss Relief if your startup fails, up to 50%.
Eligibility highlights:
- Gross assets under £200k at share issue.
- Fewer than 25 full-time employees.
- Less than 2 years trading history.
SEIS can yield a net effective cost of just 5p per £1 you raise. That’s serious runway.
Enterprise Investment Scheme (EIS)
When you’ve passed the seed stage, EIS steps in:
- 30% Income Tax Relief on investments up to £1m per year.
- Capital Gains Deferral for gains reinvested into EIS shares.
- Lifetime raise of up to £12m.
EIS criteria:
- Gross assets under £15m pre-investment.
- Fewer than 250 employees.
- Within 7 years of first commercial sale.
Both SEIS and EIS require Advance Assurance from HMRC. Gather:
- Business plan & financial forecast
- Details of proposed investors
- Latest accounts and cover letter
Then apply online. It typically takes 30–60 days to receive reassurance.
4. Comparing Funding Routes Side by Side
| Route | Key Benefit | Trade-off | Best For |
|---|---|---|---|
| Angel Investors | Hands-on support | Equity dilution | Seed & early stage |
| Venture Capital | Large tickets | Stringent terms | Growth & scale |
| Equity Crowdfunding | Broad investor pool | Ongoing shareholder communications | Community-driven brands |
| Reward Crowdfunding | Early validation | Fulfilment workload | Consumer products |
| SEIS (in our SEIS investment guide) | 50% tax relief + low cost of capital | Complex advance assurance process | Very early-stage innovators |
| EIS | Up to £12m raise + tax breaks | Larger businesses, more admin | Post-seed, pre-scale |
| Debt Financing | No dilution | Interest payments | Revenue-generating operations |
5. How to Use This SEIS Investment Guide in Practice
Here’s a simple 4-step playbook to apply SEIS and other routes:
- Assess Your Stage
• Pre-revenue? Lean on SEIS and rewards.
• Early revenues? Add EIS and equity rounds. - Prepare Your Documents
• Financial forecast
• Investor-friendly pitch deck
• Advance Assurance application pack - Choose a Platform
• Oriel IPO for commission-free, curated SEIS/EIS deals.
• Traditional platforms (Crowdcube, Seedrs) if you need a wider crowd. - Engage & Manage
• Keep investors updated monthly.
• Leverage their expertise.
• Plan exit or next round well in advance.
The good news? Our SEIS investment guide equips you to navigate each step with confidence.
6. Why Oriel IPO Stands Out
You’ve learned the routes. Now pick the right partner. Here’s why Oriel IPO should be on your shortlist:
- Commission-Free Marketplace
No fees on successful raises. Keep every pound you earn. - Curated SEIS/EIS Opportunities
We vet deals for compliance and potential. - Educational Resources
Clear articles, webinars and toolkits to demystify SEIS/EIS. - Subscription Tiers
Access basic deal flow or upgrade for personalised support. - Community Support
Connect with fellow entrepreneurs and angel investors.
In short: you get the tax incentives of SEIS, the capital-raising power of equity and the ease of a streamlined platform—all without hidden commissions.
7. Practical Tips for Success
- Engage Early: Apply for Advance Assurance before pitching to investors.
- Tell a Story: Investors back founders as much as ideas.
- Show Traction: Even small revenue or user metrics build credibility.
- Plan Exits: Outline clear milestones and potential acquirers.
- Use Expert Networks: Leverage Oriel IPO’s curated angel community.
Conclusion
Raising funds in the UK is complex. But with this SEIS investment guide, you have a clear roadmap—from equity and crowdfunding to government-backed SEIS/EIS. The final piece? A platform that simplifies it all.
Ready to fund your vision without losing equity to fees?
Start your SEIS journey with Oriel IPO today →
