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SEIS & EIS Investment Strategies for Law Firms and Professional Services

Why Law Firms Are Rethinking Equity

Remember the old partnership model? It relied on cash from existing equity partners. Short-term focus. Slow growth. Partners waiting decades for a return. Sound familiar?

Now, law firms eye outside capital. The goal: invest in talent, tech and new practice areas. But an IPO can bring a headache. Public scrutiny. Stock market volatility.

Enter SEIS & EIS.

  • SEIS (Seed Enterprise Investment Scheme) drives early-stage investment.
  • EIS (Enterprise Investment Scheme) attracts later-stage capital.

Both offer juicy tax incentives. And in a sector hungry for growth, they’re game-changers. Well… almost.

Understanding SEIS & EIS: The Essentials

Let’s break it down:

SEIS for legal sector
– Targets start-ups and very early-stage ventures.
– Investors get 50% income tax relief on investments up to £100,000.
– Capital gains on SEIS shares can be tax-free.

EIS for legal sector
– Supports more mature ventures.
– 30% income tax relief on investments up to £1 million (or £2 million in certain growth sectors).
– Capital gains deferral and tax-free on disposal.

What does this mean for a law firm? You can attract investors with a clear tax advantage. You unlock cash without giving up day-to-day control.

Benefits for Professional Services

Why should law firms care about SEIS & EIS?

  1. Long-term vision
    Traditional equity partners often seek quick returns. SEIS and EIS investors can hold shares for at least three years to reap the benefits.

  2. Alternative billing
    With cash in the bank, firms can experiment with fixed fees, subscriptions or blended models.

  3. Talent acquisition
    Hiring star partners or associates? Use fresh capital to offer competitive packages without tapping into partner retirement pools.

  4. Tech investment
    Automate document review. Deploy AI for due diligence. Upgrade practice management tools.

But setting up SEIS & EIS isn’t plug-and-play. You need the right platform and support.

SEIS is your springboard. Here’s a simple roadmap:

  1. Incorporate or restructure
    Law firms must operate as a company, not a partnership. The UK Legal Services Act 2007 introduced ABS (Alternative Business Structure) to make this possible.

  2. Prepare a pitch deck
    Lay out your growth plans. Explain how you’ll use the cash. Highlight client pipelines.

  3. Validate eligibility
    Make sure your firm’s activities align with SEIS rules. Certain financial service activities might be excluded.

  4. Find investors
    Use a platform like Oriel IPO. It’s commission-free, tax-focused and curated for professional services.

  5. Complete HMRC advance assurance
    This step gives investors confidence that they’ll receive the promised tax relief.

And voilà—your firm has a funding boost to hit the ground running.

When SEIS runs out of steam, switch gears to EIS:

  • You’ve proven your concept.
  • Revenues are picking up.
  • Bigger investments are needed to expand into new regions or practice areas.

Steps to deploy EIS:

  1. Demonstrate growth
    Show at least two years of trading or evidence of a solid pipeline.

  2. Define use of funds
    Document hires, technology upgrades or sector expansion.

  3. Engage an investment platform
    Oriel IPO offers a dashboard that guides you through compliance, paperwork and investor matchmaking.

  4. Secure advance assurance
    Again, this is a must.

With EIS, investors get longer-term comfort and you secure the fuel for your growth engine.

Why Oriel IPO Beats Other Platforms

You’ve heard of Seedrs or Crowdcube. They’re big names. Solid platforms. However, most charge commission on successful raises. Some focus broadly on all industries.

Oriel IPO is different:

  • Commission-free: Keep 100% of the capital you raise.
  • Tailored to professional services: We understand the quirks of legal, accounting and advisory businesses.
  • Educational tools: Our platform includes modules on tax incentives, ABS structures and client-fee models.
  • Maggie’s AutoBlog: Need blog content that drives SEO traffic? Our AI-powered tool—Maggie’s AutoBlog—automatically crafts SEO and GEO-targeted posts so your marketing team can focus on strategy.

Sound good? It gets better.

A Case in Point: Law Firm ABS Investment

In 2020, Burford Capital took a minority stake in PCB Litigation through an ABS structure. The result:

  • Immediate cash injection
  • Zero interference with daily decisions
  • Funds to hire leading litigators
  • Investment in cutting-edge legal tech

This isn’t an isolated story. It’s a blueprint for SEIS & EIS success in the legal sector. And platforms like Oriel IPO streamline the process.

Explore our features

Practical Steps to Running Your Campaign

Ready to dive in? Here’s a quick checklist:

  • Register your firm as an ABS company.
  • Develop a clear business plan and financial model.
  • Apply for advance assurance from HMRC.
  • Craft an investor pack with use-of-proceeds, market analysis and team bios.
  • List your opportunity on Oriel IPO.
  • Leverage our educational resources and community forums.
  • Launch a targeted marketing push to EIS/SEIS-savvy investors.

Keep your pitch short. Use bullet points. Show the problem you solve for clients—be it cost certainty, speed or specialised expertise.

SEIS & EIS aren’t risk-free. Investors know that. So, you need iron-clad governance:

  • Maintain accurate records.
  • Ensure fund utilisation matches your promise.
  • Keep shareholders informed.
  • Monitor changes in legislation.

Oriel IPO’s compliance dashboard sends alerts for upcoming deadlines and helps you manage investor communications.

The demand for alternative equity is climbing. Traditional credit lines are tightening. Clients want flexible fees. Technology demands constant investment.

EIS for legal sector firms will:

  • Become more common.
  • Expand beyond London to regional hubs.
  • Attract high-net-worth and institutional backers.

Platforms that offer tailored, commission-free services will lead the charge.

Conclusion

SEIS & EIS in the legal sector aren’t just buzzwords. They’re practical tools that let law firms:

  • Access vital growth capital
  • Maintain control over operations
  • Offer clients innovative billing models
  • Invest in people and technology

And with Oriel IPO’s commission-free, educational and tech-driven approach—including Maggie’s AutoBlog—you get everything you need in one place.

Ready to redefine how your firm raises capital?

Get a personalized demo

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