Power Up Your Startup with SEIS, EIS and Government Startup Grants
Startups often hit a brick wall when chasing that crucial first round of cash. The UK government understands this—and has crafted a suite of incentives known as Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) to ease that pain. These programmes don’t just offer a cash injection; they come with tax breaks that can cut investor risk by almost half. Best of all, there’s a wider menu of government startup grants and support streams ready to fuel your growth.
In this guide, we’ll unpack the essentials of SEIS and EIS, explore how to qualify, and shine a light on those lesser-known grant programmes that could tip the scales in your favour. We’ll also show how Oriel IPO’s commission-free platform makes accessing government startup grants simpler than ever. Revolutionizing government startup grants in the UK
Understanding SEIS and EIS: Twin Pillars of Early-Stage Funding
Before diving into the paperwork, it helps to grasp the core mechanics of SEIS and EIS. Both schemes reward investors with tax relief, but they target different stages of a company’s life.
- Seed Enterprise Investment Scheme (SEIS)
- Investor relief up to 50% on investments up to £100,000 per tax year.
- Company must be less than 2 years old and have fewer than 25 employees.
- Unused relief can be carried back to the previous tax year.
- Enterprise Investment Scheme (EIS)
- Investor relief of 30% on investments up to £1 million per tax year (or £2 million if at least £1 million is in knowledge-intensive companies).
- Company trading for less than 7 years with fewer than 250 employees.
- CGT (Capital Gains Tax) exemption on disposal if shares held for at least three years.
- Key benefits for investors and startups
- Ability to offset losses against income for additional downside protection.
- Reduced capital gains on future sale of shares.
- Encourages private capital flow into UK innovation.
These two schemes are the backbone for many founders hunting government startup grants. They offer immediate tax relief and a faster route to securing backing, whether from professional angels or through a curated marketplace like Oriel IPO.
Eligibility and Application: How to Qualify for Government Startup Grants
Applying for government startup grants can feel like jumping through hoops, but breaking it down into steps makes it far less daunting.
- Check your company structure
– Must be a UK-registered limited company.
– Fewer than 250 employees for EIS; fewer than 25 for SEIS. - Trade qualifying criteria
– Trading for less than 2 years (SEIS) or 7 years (EIS).
– No gross assets above £200,000 (SEIS) or £15 million (EIS). - Obtain Advance Assurance
– A pre-check by HMRC confirming eligibility.
– Not mandatory, but speeds up investor confidence. - Prepare robust documentation
– Detailed business plan.
– Spending projections showing use of funds for R&D or growth. - Meet certification deadlines
– Submit Form SEIS1/EIS1 within three years of share issue. - Complete Investor Reports
– Investors will need compliance statements for their tax returns.
– Keep records of spend and progress.
Adhering to each step can unlock valuable government startup grants and hefty tax breaks. Many founders outsource parts of this process to legal or accounting partners—worth the extra expense when compared to the value of reliefs secured.
Beyond SEIS and EIS: Other Government Funding Streams
SEIS and EIS cover equity incentives, but they aren’t the only government startup grants on offer. You can layer these schemes with direct grants and loans funded by different bodies:
- Innovate UK Grants
- Regular competitions across tech, health, energy and more.
- Non-dilutive funding up to hundreds of thousands, sometimes millions.
- Horizon Europe (via UK partnerships)
- Collaborative R&D grants for research-intensive SMEs.
- Often funds cross-border projects with EU and global partners.
- UK Shared Prosperity Fund
- Part of the revised EU Cohesion policy, now UK-managed.
- Regional funding to improve skills, innovation and infrastructure.
- Microfinance and Growth Finance
- Loans up to £25,000 through local providers under the EaSI programme.
- Growth Finance offers higher credit levels up to £1 million.
- Sector-specific initiatives
- Carbon Capture, Clean Energy and Digital Infrastructure via BEIS and CINEA.
- Agri-tech support under the revised Common Agricultural Policy replacement.
Tapping these options often means juggling multiple applications and budgets. A structured calendar and clear budget allocation are essential. But stack these grants on top of SEIS/EIS-based investment and you can create a robust funding stack with minimal dilution.
How Oriel IPO Simplifies Access to Government Startup Grants
Wading through government startup grants can be time-consuming. That’s where Oriel IPO steps in:
- Commission-free model
- No percentage cut of funds raised. Startups keep more equity.
- Subscription-based access
- Transparent fees. One flat rate for listing and support.
- Curated, vetted opportunities
- Only eligible SEIS/EIS applicants get featured. Quality over quantity.
- Educational resources
- Webinars, how-to guides and checklists on grant and tax reliefs.
- Investor network
- Angel syndicates familiar with SEIS/EIS caveats.
With Oriel IPO, you can browse a centralised marketplace of government startup grants-friendly raises. No endless spreadsheets. No surprise fees. Just clear, tax-efficient pathways to capital. Discover commission-free government startup grants with Oriel IPO
Top Tips to Maximise Your Grant Success
Even the best incentives need a solid strategy. Follow these practical steps:
- Start early
- Build your application drafts before deadlines loom.
- Engage professional advice
- Advance assurance via an accountant or tax adviser.
- Showcase innovation
- Tie every budget line back to R&D or market expansion.
- Build a network
- Attend regional SME forums and Innovate UK briefing events.
- Track outcomes
- Keep evidence of job creation, revenue growth and patent filings.
Combine these habits and you’ll boost not only your chance of SEIS/EIS–style equity investment but also unlock government startup grants from multiple pots.
Conclusion: Your Next Steps in Securing Government Startup Grants
The UK’s funding landscape is rich but can feel fragmented. SEIS and EIS remain the first port of call for many founders, yet broader government startup grants and direct funding streams are waiting once you know where to look. By combining tax-efficient equity investment with targeted grants, you create a robust capital stack designed to propel growth while preserving ownership.
Oriel IPO’s commission-free platform streamlines the complexity and brings all those options under one roof. Ready to take the guesswork out of grants and schemes? Start leveraging government startup grants commission-free today
