How Roam Local Secured £600,000 via SEIS and EIS Funding
Roam Local Limited, a digital high street marketing platform based in the UK, successfully raised £600,000 in seed equity by combining the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS). The company offered a 20% equity stake based on a £3 million pre-money valuation. By securing £250,000 under SEIS rules and £350,000 through EIS, the business offered investors income tax relief between 30% and 50%, zero capital gains tax on profits, and loss protection. You can Explore SEIS opportunities to see how early-stage tech businesses structure these rounds to attract private capital.
This funding round powered Roam Local’s national rollout across the North of England and Northern Ireland, proving how tax-efficient seed rounds accelerate high-street tech initiatives. Startup founders and private investors looking to replicate this success can leverage Tax saving investments to access curated equity opportunities that maximize tax efficiency for both parties.
What is the Roam Local SEIS EIS raise?
The Roam Local SEIS EIS raise refers to the £600,000 seed funding secured by Roam Local Limited using two of the UK government’s premier tax relief frameworks. Tech startups often struggle to convince angel investors to take early-stage risks. By combining SEIS and EIS, Roam Local eliminated much of that investor risk while securing vital capital to scale its app nationwide.
Here is how the £600,000 funding allocation broke down:
- SEIS Tranche: £250,000 allocated to early investors to deliver maximum upfront tax relief (50% income tax relief).
- EIS Tranche: £350,000 allocated for remaining balance, offering 30% income tax relief to larger angel investors.
- Equity Offered: A total 20% equity stake in Roam Local Limited.
- Pre-Money Valuation: Valued at £3 million prior to the injection of growth capital.
Structuring a dual SEIS/EIS raise requires precise timing. UK tax rules mandate that SEIS shares must be issued before EIS shares. Roam Local got this right by reserving the first £250k specifically for early commitment angels who wanted to cap out their SEIS allowances.
How Did SEIS and EIS Benefit Roam Local Investors?
Investors didn’t just back Roam Local because of its high street marketing software. They backed it because the UK tax incentives dramatically altered their risk-to-reward ratio. When high-net-worth individuals review early-stage tech deals, tax relief softens the downside while keeping the upside open.
Seed Enterprise Investment Scheme (SEIS) Incentives
Investors participating in the initial £250,000 tranche unlocked some of the most generous tax breaks available globally:
- 50% Income Tax Relief: An investor putting £10,000 into Roam Local instantly saved £5,000 on their UK income tax bill.
- Capital Gains Tax (CGT) Reinvestment Relief: Investors could halve their tax liability on gains made from selling other assets if reinvested into SEIS.
- Tax-Free Growth: No capital gains tax is due on profits made when selling the Roam Local shares after holding them for three years.
- Loss Relief: If the startup failed, investors could claim tax relief on the net loss at their marginal tax rate.
Enterprise Investment Scheme (EIS) Incentives
The remaining £350,000 portion utilized EIS tax relief to engage larger private investors and family offices:
- 30% Income Tax Relief: An investor contributing £50,000 immediately reduced their tax liability by £15,000.
- CGT Deferral Relief: Investors could defer paying tax on capital gains realized from other asset sales by locking capital into EIS equity.
- Inheritance Tax (IHT) Exemption: EIS shares generally qualify for Business Relief, removing them from inheritance tax liabilities after two years of ownership.
If you want to evaluate similar seed deals, you can Find early-stage startups that offer official SEIS and EIS advance assurance.
Where Did Roam Local Direct the £600,000 Capital?
Raising money is only half the battle; spending it efficiently is what builds long-term shareholder value. Managing Director Andrew Bartlett mapped out a clear capital deployment strategy to ensure the £600,000 drove rapid scaling.
1. Accelerating Product Development
Roam Local built an app designed to drive footfall back to brick-and-mortar high street shops. The funding enabled the development team to upgrade core features, improve location-based targeting, and create automated merchant loyalty tools to boost repeat visits.
2. Strategic Regional Expansion
With successful initial pilots across Northern Ireland and Northern England, Roam Local deployed capital directly into aggressive merchant acquisition campaigns. Getting local businesses on board requires boots on the ground, targeted local marketing, and strong merchant onboarding incentives.
3. Scaling Digital Infrastructure
A marketing platform lives or dies by its uptime and speed. The investment funded enterprise-grade infrastructure updates to support tens of thousands of simultaneous app users without latency or outage issues.
Why Tax-Efficient Seed Rounds Matter for UK Founders
If you are a UK founder, relying solely on standard venture capital or bank debt can limit your initial options. High-street banks rarely lend to unproven software startups, and VC funds often want to see significant revenue before committing capital.
This is where early-stage founders turn to high-net-worth individuals and business angels. But why should an angel invest in your software platform over a liquid index fund? The answer lies in structural tax reliefs.
When you present an investor with an SEIS or EIS opportunity, you are handing them a safety net. If your startup thrives, their upside is completely tax-free. If your startup fails, tax relief limits their net capital exposure significantly.
Founders who want to build a round similar to the Roam Local SEIS EIS raise should focus on getting Advance Assurance from HMRC early. Advance Assurance is official confirmation from tax authorities that your business meets SEIS/EIS qualification rules. Investors will rarely transfer funds without seeing this document upfront.
If you are preparing your deck, you can Showcase your startup to connect directly with angel networks actively seeking tax-efficient UK equity opportunities.
How Can Accountants and Advisers Support Early-Stage Raises?
Behind every successful £600,000 seed raise is a team of sharp financial advisers and chartered accountants. Tax professionals ensure that share issuance dates match HMRC guidelines, subscription monies are handled correctly, and compliance certificates (SEIS3 and EIS3 forms) are issued to investors promptly.
Failing to manage these details can destroy tax relief for investors. For example, if a founder issues EIS shares before completing the SEIS tranche, the company forfeits its remaining SEIS capacity forever. Accountants and financial mentors prevent these costly administrative errors.
Advisers looking to streamline startup fundraising workflows can access SEIS EIS support for accountants to help client companies structure compliant rounds and manage investor expectations seamlessly.
Key Takeaways from the Roam Local Success Story
Roam Local’s £600k fundraising journey provides valuable lessons for the broader UK tech ecosystem. Here is what early-stage companies and investors can learn from this milestone:
- Mix SEIS and EIS Strategically: Cap out your SEIS limit (£250k) first to offer early backers maximum tax relief before rolling into EIS.
- Set Realist Valuations: Roam Local set a pre-money valuation of £3 million for a 20% equity dilution, which matched their stage of development and growth prospects.
- Solve a Real Problem: Roam Local targeted high-street footfall recovery, a clear problem with an identifiable, expandable market.
- Leverage Ecosystem Platforms: Avoid relying entirely on personal networks. Using online investment hubs accelerates founder-to-investor connections.
Take the Next Step in UK Startup Investing
Whether you are an ambitious founder looking to fund your digital platform or an angel investor seeking tax-efficient growth opportunities, utilizing SEIS and EIS frameworks is essential for early-stage capital growth.
Roam Local demonstrated how combining strong technology with UK tax schemes can yield rapid growth. By leveraging commission-free investment marketplaces, startup founders keep more of their raised capital while investors gain access to vetted, high-potential deals.
To discover how you can raise seed capital or invest tax-efficiently, visit Oriel IPO today and join the UK’s growing community of founders, investors, and professional advisers. You can also Understand EIS tax relief to explore active investment opportunities across the UK technology landscape.
