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Title: Seed Enterprise Investment Scheme
Meta Description: Discover how Roam Local Limited successfully secured £600,000 through the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) to advance their innovative digital high street marketing application.
Introduction
In the dynamic landscape of UK startups, securing effective funding is paramount for growth and innovation. Roam Local Limited, a pioneering tech startup specializing in digital high street marketing, has recently achieved a significant milestone by raising £600,000 through the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). This achievement not only underscores Roam Local’s potential but also highlights the pivotal role that SEIS/EIS plays in fostering entrepreneurial success.
Understanding SEIS and EIS
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) are government-backed initiatives designed to stimulate investment in early-stage and growing companies in the UK. These schemes offer substantial tax reliefs to investors, making them attractive avenues for funding startups.
Key Benefits of SEIS:
- Income Tax Relief: Investors can claim up to 50% income tax relief on their investment.
- Capital Gains Tax Exemption: Any profit made from SEIS investments is exempt from capital gains tax.
- Inheritance Tax Relief: SEIS investments can qualify for inheritance tax relief after two years.
Key Benefits of EIS:
- Income Tax Relief: Investors can receive up to 30% income tax relief.
- Capital Gains Tax Deferral: Investors can defer capital gains tax by reinvesting the gains into EIS-qualifying companies.
- Capital Gains Tax Exemption: Gains from EIS investments are tax-free if held for at least three years.
These incentives not only make investing in startups more appealing but also reduce the financial risk for investors, thereby facilitating a more vibrant investment environment.
Roam Local’s Fundraising Journey
Roam Local Limited leveraged the SEIS and EIS schemes to raise £600,000, marking a significant step in their expansion and product development plans.
The Offer and Valuation
Roam Local offered a 20% equity stake in the company, valuing the pre-raise assessment at £3 million. The fundraising was split between SEIS and EIS, with the first £250,000 available on a first-come, first-served basis under SEIS, and the remaining £350,000 under EIS. This strategic allocation ensured that early investors could maximize their tax relief benefits.
Use of Funds
The capital raised will be instrumental in funding Roam Local’s national and international rollout. With initial deployments already in the north of England and Northern Ireland, the additional funds will support:
- Product Development: Enhancing the app’s features to better serve local businesses and consumers.
- Marketing Expansion: Increasing market penetration through targeted marketing campaigns.
- Infrastructure Scaling: Building the necessary infrastructure to support a growing user base.
Impact on Business Growth
Andrew Bartlett, Roam Local’s founder and managing director, emphasized that the funds will not only support customer acquisition but also foster loyalty and repeat business. This dual focus is expected to drive significant profit increases and establish Roam Local as a key player in the digital marketing space.
The Role of SEIS/EIS in Startup Success
Roam Local’s successful fundraising underscores the importance of SEIS and EIS in the UK startup ecosystem. These schemes provide the financial backbone that enables startups to innovate and scale without the burden of excessive financial strain.
Empowering Entrepreneurs and Investors
By simplifying the investment process and offering robust tax incentives, SEIS and EIS bridge the gap between ambitious startups and discerning investors. This symbiotic relationship fosters a culture of innovation and growth, essential for a thriving economy.
Oriel IPO’s Vision in the Investment Marketplace
Parallel to Roam Local’s success, Oriel IPO (Oriel Services Limited) is revolutionizing the UK investment landscape. Launched in early 2024, Oriel IPO is an online investment marketplace that connects UK startups with investors through SEIS/EIS tax incentives, eliminating commission fees and providing curated investment opportunities.
Unique Selling Propositions:
- Commission-Free Funding: Facilitates seamless connections between startups and investors without additional costs.
- Curated Investment Options: Focuses on tax-efficient opportunities, enhancing the attractiveness of investments.
- Educational Resources: Empowers users with the knowledge needed to make informed investment decisions.
As Oriel IPO continues to evolve, strategic initiatives such as pursuing FCA regulation and expanding service offerings will be crucial in maintaining competitiveness and fostering a robust investment community.
Conclusion
Roam Local Limited’s successful raise of £600,000 through SEIS and EIS is a testament to the effectiveness of these schemes in nurturing startup growth. As the UK continues to support its burgeoning startup ecosystem, platforms like Oriel IPO are poised to further democratize investment opportunities, ensuring sustained innovation and economic prosperity.
Ready to explore investment opportunities or seek funding for your startup? Visit Oriel IPO today and join the future of UK investment marketplaces.
