Getting Equity-Free Support Off the Ground
Startups often equate funding with giving away share certificates. But non-dilutive routes exist. Think grants, competitions, tax-advantaged schemes like SEIS and EIS. These schemes are cornerstone for startup grants UK seekers. You keep your shares. You gain confidence. No hidden equity cuts.
We’ll walk you through both schemes, compare benefits and pitfalls, and show you how to speed up applications. Plus, you’ll see how a dedicated marketplace can simplify every step. Ready to tap into the best startup grants UK can offer? Explore how we’re revolutionising startup grants UK.
Understanding Non-Dilutive Funding for Startups
Non-dilutive funding means you raise money without handing over extra equity. In practice, that covers:
- Government-backed startup grants UK schemes
- University competitions and fellowships
- Corporate innovation prizes
You won’t see dilution in your cap table. Instead, you get cash, mentoring, often networks. It’s a powerful way to validate ideas early. And it pairs neatly with SEIS/EIS tax reliefs.
What Is SEIS?
The Seed Enterprise Investment Scheme (SEIS) is a UK government programme. It’s designed for seed-stage ventures to attract individual investors. Key points:
- Tax relief up to 50% on investments
- £150,000 maximum per company per year
- Investor gains free of capital gains tax after three years
Many founders consider startup grants UK via SEIS as tax-smart. It’s straightforward, too—registered companies under two years old, fewer than 25 employees, and a maximum of £200k in gross assets.
What Is EIS?
The Enterprise Investment Scheme (EIS) picks up where SEIS leaves off. It targets slightly bigger ventures. Main features:
- Up to 30% income tax relief
- £5 million annual fundraising cap per company
- Capital gains tax exemption after three years
EIS can complement existing startup grants UK routes. It’s for companies with up to 250 staff and £15 million in assets. The reliefs shrink compared to SEIS, but the available pool of investors is larger.
Why SEIS and EIS Matter for Startups
Tax incentives can make or break early rounds. SEIS and EIS:
- De-risk investor capital
- Encourage angels to back higher-risk ideas
- Send positive signals to future VCs
These schemes rank among the top startup grants UK startups pursue. They’re tried and trusted. And the UK government actively promotes them, so awareness continues to grow.
Key Differences Between SEIS and EIS
If you’re weighing different startup grants UK options, remember:
- Eligibility: SEIS has tighter age and asset limits.
- Reliefs: SEIS offers 50% relief, EIS 30%.
- Caps: SEIS is capped at £150k, EIS at £5m.
- Scale: SEIS suits pilot/prototype, EIS pushes you into scale-up territory.
Choose SEIS to kickstart pre-revenue, and EIS when you’re ready for traction.
How Oriel IPO Simplifies the Route
Navigating SEIS and EIS can feel like a maze. That’s where Oriel IPO comes in:
- Commission-free funding: You pay a subscription, not a piece of your raise.
- Curated, tax-efficient deals: Every opportunity meets SEIS/EIS criteria.
- Educational tools: Guides, webinars and insights at your fingertips.
- Vetted investors: Real angels who understand early-stage risks.
- Dashboard insights: Track applications, approvals and timelines.
- A clear path to find and apply for startup grants UK incentives.
We centralise SEIS and EIS so you can see all leading startup grants UK schemes at once.
Need a straightforward way to tap into non-dilutive funding? Discover our platform for startup grants UK.
Real-World Examples
Case studies always help. Consider a London-based SaaS startup that used SEIS to secure £120k from angels. They kept 95% ownership. Post-launch, they toggled to EIS for a £1m round and scaled rapidly.
In another instance, a medtech spin-out combined a university innovation grant with SEIS relief. They raised pre-revenue capital while still in the lab. In each case, founders boosted growth without giving up equity, using startup grants UK through SEIS/EIS.
Beyond SEIS and EIS: Other Non-Dilutive Paths
Don’t forget the wider landscape:
- Regional innovation grants (e.g., Innovate UK)
- Industry-specific competitions
- NGO and philanthropic fellowships
Many venture competitions also offer mentor networks. While SEIS/EIS dominate, diversifying your funding mix can accelerate milestones.
Next Steps and Resources
- Check SEIS and EIS eligibility via HMRC guidelines.
- Prepare clear financial projections and a solid pitch deck.
- Engage with platforms that vet investors and manage paperwork.
- Bookmark our guide to startup grants UK incentives.
Still uncertain? Oriel IPO’s resources walk you through every nuance of SEIS and EIS. And you’ll save time on compliance and communication.
Conclusion
Non-dilutive funding isn’t a buzzword. It’s a practical strategy. SEIS and EIS remain two of the strongest startup grants UK founders can leverage. They reduce risk for backers and preserve your equity. And with the right partner, you can accelerate applications and close rounds faster.
Your next step in securing startup grants UK starts here. Secure your startup grants UK path today
