Lessons from 140+ SEIS and EIS Investments: A Founder’s Guide to Commission-Free Funding

Why Commission-Free, Tax-Efficient Funding Matters

As a founder, every pound counts. Traditional fundraising platforms often shave off hefty commissions, leaving you with less runway. And navigating SEIS and EIS schemes can feel like wading through fine print. This is where commission-free, structured funding comes in:

• Retention of capital: You keep more of the money you raise.
• Tax incentives: Investors get generous reliefs, making your pitch far more compelling.
• Streamlined process: Fewer intermediaries mean fewer delays.

That’s why angel investing best practices today require a blend of tax-smart incentives and transparent platforms—exactly what Oriel IPO delivers.

Big Takeaways from 140+ Deals

Drawing on lessons from seasoned angels—like Lenny Rachitsky’s journey of 140+ deals—here are the core surprises and best practices for founders:

1. Access Trumps Picking
   Most top-performing deals in Lenny’s portfolio were “hot” rounds. Getting into those requires visibility, not clairvoyance.
   – Build a compelling founder story.
   – Leverage networks: founders trust referrals over cold outreach.
   – Prioritise platforms that highlight SEIS/EIS eligibility.

2. Relationships Are Currency
   Angels share great deals with fellow investors. Cultivate genuine partnerships:
   – Provide useful updates.
   – Offer to introduce angels to your network.
   – Be transparent—trust builds momentum.

3. Surprises Are Inevitable
   Only a third of the best returns came from investments rated Great at the outset. That teaches us:
   – Be open to under-the-radar opportunities.
   – A balanced portfolio staves off bias.
   – Don’t dismiss ventures where conviction isn’t 100%.

Core Angel Investing Best Practices for Founders

Bringing it back to you—the founder—here are actionable steps to nail angel investing best practices:

1. Nail Your SEIS/EIS Story

• Quantify benefits: Spell out investor relief (50% income tax relief under SEIS, up to 30% under EIS).
• Visual aids: Use clear charts showing net cost after relief.
• Case studies: Showcase a past round with SEIS/EIS success.

2. Build a Bulletproof Pitch Deck

• Keep it under 15 slides.
• Lead with your mission, then traction.
• Include a dedicated slide on tax incentives.

3. Leverage Commission-Free Platforms

Commission fees can eat 5–8% off your raise. Instead:

• Use a subscription-driven marketplace like Oriel IPO.
• Align with vetted investors—no scattergun approach.
• Stay updated via in-platform analytics (e.g. funding velocity, investor interest).

4. Cultivate Angel Relationships

• Send a concise weekly update.
• Host virtual roundtables for investor Q&A.
• Reward early supporters (special access to demos, board invites).

How Oriel IPO Streamlines Commission-Free Funding

This is where the rubber meets the road. Oriel IPO’s platform stands out by:

• Commission-free model: Subscription fees replace hidden charges.
• Curated SEIS/EIS opportunities: Only eligible startups make the cut.
• Educational toolkit: Webinars, guides and insights to decode SEIS/EIS.
• Deal analytics: Real-time dashboards showing investor engagement.

Plus, founders can harness Maggie’s AutoBlog—an AI-powered tool that auto-generates SEO-optimised content based on their site. Picture this: fresh, geo-targeted blogs that drive organic traffic and reinforce your credibility before you even pitch.

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Evaluating Your Investor Network

An effective investor is more than money in the bank. Look for angels who:

• Understand SEIS/EIS complexities.
• Bring strategic value (introductions, domain expertise).
• Show a track record on curated platforms.
• Provide honest feedback—no sugarcoating.

Checklist for investor diligence:

• Confirm they’ve backed SEIS/EIS rounds before.
• Review their co-investors.
• Ask about past exits.
• Gauge availability: will they be hands-on or purely financial?

Crafting a Commission-Free Funding Roadmap

To embed these angel investing best practices, follow this roadmap:

1. Pre-Launch Preparation
   – Draft a tax-incentives one-pager.
   – Identify top 20 investor prospects.

2. Platform Onboarding
   – Create your Oriel IPO profile.
   – Verify SEIS/EIS eligibility via the platform’s vetting process.

3. Active Fundraising
   – Publish your pitch.
   – Engage via in-platform Q&A.
   – Update your deck based on feedback.

4. Closing the Round
   – Use Oriel IPO’s subscription model to track commitments.
   – Issue SEIS/EIS certificates automatically.
   – Celebrate with a live demo to your backers.

Wrapping Up

Championing angel investing best practices is about understanding tax incentives, nurturing relationships, and choosing the right, commission-free platform. Oriel IPO doesn’t just connect you to capital; it equips you with the tools and insights to thrive in the UK’s SEIS/EIS ecosystem.

You’ve got the roadmap. Now hit the accelerator.

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