Why SEIS & EIS Platforms Matter for SMEs
Every small business dreams of growth. But without the right cash injection, that dream stalls. In the UK, the SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) exist to change that. They offer tax incentives that make early-stage investing attractive.
- SEIS gives investors up to 50% income tax relief.
- EIS offers up to 30%.
- Both schemes can shield capital gains.
As a result, more angels and VCs are keen to back startups. Yet many SMEs struggle to find a commission-free funding route. That’s where you come in. When you build SEIS platform services, you remove friction. You get direct access. And you let founders focus on innovation rather than fees.
Step 1: Understand the SEIS and EIS Schemes
Before you build SEIS platform infrastructure, know the rules. Dive into the official UK Government SEIS/EIS Overview1. Nail down:
- Eligibility criteria for companies.
- Maximum investment per investor per company.
- Reporting deadlines to HMRC.
- Share requirements.
Imagine you’re a coach learning the rulebook before a big match. You wouldn’t skip that. The same goes here. Read, annotate, and summarise. Then map each requirement to your platform’s workflows.
Step 2: Define Your Commission-Free Model
Why commission-free? Simple. Founders keep every penny raised, minus operational costs. They love transparency. Investors appreciate clarity.
Oriel IPO does it through a subscription fee. You could:
- Charge startups a monthly or annual subscription.
- Offer tiered plans based on deal volume.
- Include premium features (e.g., advanced analytics).
When you build SEIS platform offerings, your pricing structure becomes a selling point. Clear fees. No hidden commission. That builds trust.
Pro tip: Offer a trial tier. Let users test your system before they subscribe.
Step 3: Ensure Regulatory Compliance
You’re not FCA regulated. That’s fine. It just means you must tread carefully.
Key compliance tasks:
- Register as a recognised intermediary with HMRC.
- Implement Anti-Money Laundering (AML) checks.
- Verify investor eligibility for SEIS/EIS relief.
- Handle VAT correctly (UK, EU, non-EU).
Take inspiration from the Neos Project’s funding platform setup2. They tackled VAT and subscription reminders. You can too. Automate email prompts for investors whose schemes are about to expire. Keep everything in a secure staging environment before going live.
Step 4: Build Your Platform’s Core Features
This is where you go hands-on. When you build SEIS platform solutions, these are the must-haves:
- User Accounts: Let startups and investors manage profiles.
- One-time Purchases & Subscriptions: Support deal fees or membership plans.
- Payment Integration: Stripe, Braintree, or direct SEPA. Don’t store card details.
- Invoice Generation: Automatic PDFs and email dispatch.
- Multi-language Frontend: English, French, German—whatever your audience needs.
- Badge Management: Showcase verified status or sponsor levels.
- Transparency API: Public data feeds for fundraising stats.
- Cost Tracking Dashboard: Categorise expenses, define budgets.
Here’s a quick feature checklist:
- [ ] Admin panel to create and manage funding rounds
- [ ] Investor dashboard with tax relief calculators
- [ ] Startup portal to upload pitch decks and financials
- [ ] Notifications for upcoming subscription renewals
Together, these features let you build SEIS platform experiences on par with leading marketplaces.
Step 5: Curate and Vet Investment Opportunities
Not all startups are equal. When you build SEIS platform workflows, add a vetting layer:
- Legal compliance check.
- Market viability assessment.
- Founder background screening.
Curated offerings appeal to serious investors. It’s reassurance. Investors know you’ve done the homework. And startups get quality backers.
For instance, Oriel IPO vets each deal. That extra step cuts through noise. It’s one reason they’ve earned credibility in the UK investment space.
Step 6: Provide Educational Resources
Building the tech is half the battle. Next, guide your users. You could:
- Host webinars on SEIS/EIS tax relief.
- Publish step-by-step guides.
- Share case studies of successfully funded startups.
Oddly enough, you might even need to produce SEO content to attract founders. Here’s a twist: you can use Maggie’s AutoBlog, Oriel IPO’s AI-powered content platform3. It generates targeted blog posts that rank locally and nationally. That way, you don’t need a full content team. You get consistent, optimised articles that boost your platform’s online visibility.
Examples of resource topics:
- “5 Common SEIS Pitfalls and How to Avoid Them”
- “EIS vs SEIS: Which Scheme Suits Your Startup?”
- “How Investors Claim Tax Relief After Funding”
Helpful. Actionable. Shareable.
Step 7: Launch, Analyse, and Iterate
So, you’ve built SEIS platform features. Now what? Launch in beta. Gather feedback. Tweak.
- Monitor subscription conversions.
- Track user engagement with investment rounds.
- Survey both founders and investors.
Use analytics to identify drop-off points. If investors leave before completing their application, add tooltips. If startups struggle to upload documents, simplify the form.
As Oriel IPO’s SWOT analysis shows, the market is competitive. You need to keep evolving. Partner with advisory networks. Offer compliance tools. Maybe integrate advanced analytics down the road.
Conclusion
Building a commission-free SEIS & EIS funding platform is a multi-step journey. You start with regulatory know-how. You define a clear, subscription-based model. You implement robust features and a vetting process. You educate your users. And you iterate based on real data.
Remember: when you build SEIS platform tools, your goal is to reduce friction. To make early-stage funding simple. To give founders and investors confidence.
