Why SEIS Equity Liquidity Matters
You’ve poured your heart into your startup. Equity compensation—SEIS and EIS shares—now forms a large chunk of your net worth. But getting cash out while keeping the taxman happy? That’s a puzzle. You need SEIS equity liquidity without hefty capital gains bills.
Here’s the twist: Valur’s guide on monetising startup equity offers solid tactics. Yet, it’s aimed at a US audience and focuses on costly trust setups. If you’re in Europe—especially the UK—you want commission-free platforms, educational support, and a smoother path to SEIS equity liquidity. That’s where Oriel IPO shines.
We’ll break down:
– SEIS and EIS refresher
– Three smart liquidity strategies
– Valur vs Oriel IPO: a quick comparison
– How to pick the best route for your needs
Let’s dive in.
SEIS and EIS in a Nutshell
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) offer rock-solid tax breaks for investors—and perks that indirectly benefit founders. Knowing the basics helps you time your exit:
- SEIS
└ 50% income tax relief on investments up to £100k per tax year. - EIS
└ 30% income tax relief on investments up to £1m per tax year. - Capital Gains Exemption
└ Sell shares after two years for 100% CGT relief. - Loss Relief
└ Offset losses against income if things go south.
Despite these perks, getting actual cash—SEIS equity liquidity—can trigger tax events at vesting or sale. That’s why you need tactics beyond a simple sale.
Comparing Valur and Oriel IPO
Valur has carved a niche in the US with charitable trusts, CRTs, exchange funds, and loans. Solid. But down here in the UK and Europe, you face:
- High setup and ongoing legal fees
- Deals tailored to large portfolios, not SMEs
- No commission-free market for SEIS/EIS shares
Oriel IPO steps in to fill the gap:
Strengths
– Commission-free funding market for SEIS and EIS equity
– Curated, tax-efficient listings
– Educational resources (and Maggie’s AutoBlog) for all your content needs
– Subscription tiers with dedicated support
Weaknesses (of Valur approach)
– Complex US trust structures don’t map well to UK law
– High costs eat into liquidity gains
– Lack of a primary marketplace for sales and loans
Oriel IPO solves these by combining a zero-commission platform, clear guidance on UK-friendly structures, and automated content tools like Maggie’s AutoBlog to keep your investors in the loop—without hiring a content team.
Three Tactical Approaches to SEIS Equity Liquidity
Whether you’re in late-stage funding or post-exit planning, here are three routes to tap SEIS equity liquidity.
1. Charitable Remainder Trusts vs Oriel IPO’s Approach
Valur’s Charitable Remainder Trust (CRT) lets you:
– Gift shares to a trust
– Sell tax-free within the trust
– Receive a lifetime or term-based income
– Donate leftovers to charity
Pro: Avoid capital gains tax immediately.
Con: Setup and administration costs are steep. You lose liquidity flexibility. You need specialist legal counsel.
Oriel IPO alternative:
– Commission-free share sale on a curated SEIS/EIS marketplace
– Educational guides on using HMRC-approved structures like Charity Share Schemes
– Lower fees—only subscription-based, no per-transaction cut
This route keeps things straightforward. You sell directly, claim SEIS/EIS relief, and reinvest proceeds. No big trust. No hidden fees.
2. Exchange Funds with a Twist
An exchange fund pools your equity with other shareholders. You swap SEIS/EIS shares for a diversified basket. Taxes are deferred until withdrawal.
Valur’s model:
– Seven-year lock-in
– High management fees
– US-centric asset mix
Oriel IPO’s twist:
– Peer-to-peer SEIS/EIS swaps within Europe’s largest commission-free platform
– Flexible holding periods—you can find buyers who match your timeline
– Loan integration: use your new diversified portfolio as collateral on Oriel IPO’s partner lending desk
– Maggie’s AutoBlog can automatically generate updates about your diversification strategy, attracting new investors
This means more control and less drag on your returns.
3. Equity-Backed Loans Made Simpler
Valur suggests collateralised loans:
– Use equity as loan collateral
– No capital gains tax on loan proceeds
Fine. But US firms demand high interest, strict covenants, plus lengthy due diligence.
Oriel IPO’s loan solution:
– Integrated loan matching for SEIS/EIS shareholders
– Competitive rates via a network of European lenders
– Fast approval powered by Oriel’s platform data
– Educational toolkit: clear guides on LTV ratios, margin calls, and exit triggers
You keep your equity, tap up to 60% of its value in cash, and dodge CGT on the drawdown. That’s how you maintain real SEIS equity liquidity without surprises.
Mid-Article CTA
Choosing the Right Strategy
It boils down to your goals:
- Need quick cash? Go for an equity-backed loan.
- Want diversification? Use exchange fund swaps on Oriel IPO.
- Looking to support charity and reduce tax? Opt for direct sales on Oriel IPO’s marketplace and channel a part of proceeds to charity for relief.
Ask yourself:
1. How soon do I need the cash?
2. Am I comfortable with lock-ins?
3. What fees make sense for my equity value?
Oriel IPO’s subscription tiers guide you through these questions, and Maggie’s AutoBlog keeps your investors updated without writing a single post.
Making It Happen
- Sign up for Oriel IPO’s free trial.
- Use the platform to list or swap your SEIS/EIS shares.
- Leverage the built-in educational resources.
- If you need a loan, apply through the partner lending desk.
- Track everything via your dashboard.
It’s that simple. No hidden commissions. Expert support when you need it.
Conclusion
Monetising your SEIS and EIS equity doesn’t have to feel like a maze. You’ve seen how Valur’s US-centric trust strategies compare to Oriel IPO’s commission-free, UK-friendly solutions. Now pick the tactic that aligns with your timeline, risk appetite, and liquidity needs. And remember: using SEIS equity liquidity strategies properly can be the difference between a tax headache and a tidy payday.
