Why Look Beyond Venture Capital?
“VC or bust” is such a cliché by now. Only around 1% of UK startups secure venture capital. Meanwhile, countless entrepreneurs wrestle with traditional loans, high-interest debt, or giving up too much equity. It doesn’t have to be this way.
Enter commission-free, tax-efficient funding routes. They can help you:
- Keep more equity.
- Move faster on cash injections.
- Access investor networks without huge fees.
- Tap into incentives like SEIS and EIS.
In this guide, we’ll delve into practical alternatives—from revenue-based financing to SEIS/EIS schemes, crowdfunding and beyond.
Commission-Free SEIS and EIS: Tax-Efficiency at No Extra Cost
In the UK, the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) offer brilliant tax breaks:
- SEIS: 50% income tax relief on investments up to £100k.
- EIS: 30% income tax relief up to £1m.
These incentives can deliver a whopping 70% reduction in effective risk. But here’s the catch: many platforms charge hefty commissions, eating into your funding or your investors’ returns.
Oriel IPO flips this on its head:
- Zero commission on SEIS/EIS deals.
- Curated investment opportunities.
- Educational resources explaining every tax nuance.
Instead of paying 5–7% fees upfront, you reinvest that capital back into your business. Simple.
How SEIS/EIS Works in Practice
- You apply through the Oriel IPO portal.
- Oriel verifies eligibility and tax certification.
- Investors pick from curated deals.
- You get funding without commission deductions.
- Investors claim their tax relief via HMRC.
It’s that straightforward—and far more appealing than giving away chunks of your future growth for platform fees.
Crowdfunding: Community-Powered Capital
Crowdfunding remains a powerful way to raise money and build a fan base simultaneously. Let’s break down the main types:
Equity Crowdfunding
You trade equity for investment. Platforms like Seedrs or Crowdcube lead the way, but they come with platform fees. With equity crowdfunding on Oriel IPO:
- You still offer shares.
- Investors benefit from SEIS/EIS tax relief.
- Zero commission to the platform.
- You tap into a ready audience of tax-savvy angels.
Pro Tip: Line up lead investors (50–75% of your round) before going live. This builds momentum and credibility.
Rewards-Based Crowdfunding
You don’t give away equity. Instead, you pre-sell products or offer exclusive perks:
- No dilution.
- Early customer feedback.
- Community-building.
Often ideal for D2C brands and creative ventures. Use it to validate product-market fit. But remember: you’ll need solid fulfilment planning.
Crowdlending and Peer-to-Peer Loans
Not keen on giving up shares? Borrow directly from individuals:
- Borrowers list funding needs.
- Lenders choose loans.
- Interest rates vary.
Pros:
- Retain equity.
- Faster approvals than banks.
Cons:
- Potentially higher rates.
- Fixed repayment schedules—unless you explore revenue-based financing (more on that soon).
Crowdlending platforms can work well for moderate loans. For heavy growth investments, you might outgrow them quickly.
Grants & Non-Dilutive Funding
Grants are the holy grail of funding—you get cash with no strings attached:
- R&D grants (Innovate UK, Horizon Europe).
- Sector-specific awards.
- Innovation challenges.
The process? Gruelling. Expect a rigorous application, 50+ hours of work, and tight criteria. But the upside is pure: no equity loss, no repayment.
Oriel IPO doesn’t offer grants directly, but our educational hub walks you through:
- Identifying grant bodies.
- Writing persuasive applications.
- Project scoping and budgeting.
That support alone can turn a frustrating process into a manageable one.
Revenue-Based Financing: Flexible Repayments Tied to Sales
Here’s where things get interesting: revenue-based financing (RBF). Instead of fixed loan repayments, you pay a percentage of revenues each month.
Why is this cool?
- Payments flex with cash flow.
- No personal collateral needed.
- Perfect for growth initiatives—hiring, marketing, scaling.
RBF should be on your radar if:
- You have predictable monthly revenue.
- You need a growth boost without dilution.
- You want repayment flexibility.
Typical RBF deal structure:
- You raise X amount.
- Agree to repay Y% of monthly revenue until a cap (e.g., 1.5× the amount).
Got a lean team and strong margins? This model can be a game-changer—just remember to read the small print. Always check:
- The revenue share percentage.
- The repayment cap.
- Any hidden fees.
revenue-based financing has gained traction among SaaS, D2C, and service businesses. It’s not magic, but it delivers predictable runway without cutting into your equity.
Incubators & Venture Studios
If you’re starting from an idea, an incubator or venture studio can be your co-founder:
- Hands-on support.
- Shared resources.
- Early-stage funding.
They typically take a slice of equity (sometimes up to 25–30%). You get a team of experts, a network, and lower execution risk. But that means less ownership down the line.
Oriel IPO partners with industry advisory networks. While not a builder like Founders Factory, we connect you to incubators boosting SEIS/EIS-friendly startups. Our subscription tiers even include analytics tools to help you measure success and refine your pitch.
Accelerators
Think of accelerators as incubators on steroids:
- Fixed-term programmes (3–6 months).
- Cohort-based learning.
- Demo days and investor intros.
Accelerators often invest £30k–£250k for 5–7% equity. You gain:
- Mentorship.
- Operational support (marketing, product, legal).
- Access to high-quality investor pools.
Again, platform fees can nibble away your funds. Oriel IPO’s approach? We list accelerator-backed opportunities in our marketplace—commission-free—so you retain more of your funding.
Friends, Family & Angel Investors
Your inner circle is a double-edged sword:
- Quick money.
- Flexible terms.
- Potential for messy personal fallout.
If you go down this route, treat it like any professional round:
- Draft clear terms.
- Highlight risks.
- Show a solid plan.
Angel investors operate similarly to VCs but use their own money. In the UK, they relish SEIS/EIS tax breaks. That’s a win-win: they save on tax; you get affordable capital.
Oriel IPO lets you pitch angel networks directly through our platform. No middleman, no fees, just direct connections.
Tax Incentives: More Than Just SEIS/EIS
Beyond SEIS/EIS, don’t forget:
- R&D tax credits: claim up to 33p back per £1 spent on R&D.
- Patent box regime: reduced corporation tax on patent-derived profits.
These incentives can fund product development or offset payroll costs. Use them as a strategic lever to extend your runway.
Putting It All Together: Your Funding Roadmap
Define your growth path
High-growth SaaS? Lean D2C brand? Brick-and-mortar retailer? Your model dictates the best funding option.Map out funding types
Create a simple spreadsheet listing options: SEIS/EIS, equity crowdfunding, grants, revenue-based financing, P2P loans, angels, incubators.Research deadlines and criteria
Grants and accelerator applications have fixed windows. Plan 6–9 months ahead.Prepare your pitch materials
Tailor your deck and financials for each audience. Investors, grant panels, and crowdfunding communities care about different metrics.Leverage educational resources
Oriel IPO’s platform includes guides on crafting pitch decks, applying for tax relief, and running a smooth equity crowdfund.Convert trials into subscriptions
Once you start using Oriel IPO, upgrade to a paid tier for full access to investor analytics, compliance tools, and bespoke deal flow.
This holistic approach not only diversifies your capital sources but also puts you in control of cost, timing and growth.
Final Thoughts
VC is not the only path to success. Whether you need flexible repayment with revenue-based financing, tax relief via SEIS/EIS, or community engagement through crowdfunding, there’s a route that suits you.
And you don’t need to juggle multiple platforms with hidden fees. Oriel IPO brings commission-free SEIS/EIS, curated equity crowdfunding, and direct angel introductions under one roof. With our educational resources and subscription tiers, you get the clarity and support you need—without the extra cost.
Ready to explore funding beyond VC?
