Introduction
Equity crowdfunding opens doors. You fund startups. You get shares in return. In the UK, SEIS and EIS equity crowdfunding add a tax twist. Attractive reliefs. Less risk. More upside. Sounds good? Let’s break it down.
You might wonder: what’s the catch? Or if it’s worth your time. We’ll show you. Step by step. No fluff. And we’ll share how Oriel IPO’s commission-free marketplace fits right in.
What is Equity Crowdfunding?
Equity crowdfunding lets a crowd invest in a company not listed on the stock market. In return, you receive a slice of ownership – equity. It’s sometimes called investment crowdfunding or crowd investing.
Key points:
- Hosted on online platforms
- Minimum investments vary (often from £100)
- Investors share in profits … or losses
Every campaign has its own terms. You’ll see the minimum pledge, campaign length, valuation and share price on the platform. After the campaign closes, you become a shareholder – partial owner.
SEIS vs EIS: A Quick Overview
In the UK, two schemes dominate tax-advantaged equity crowdfunding: the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). Both help you reduce tax liability. Here’s a quick glance:
| Feature | SEIS | EIS |
|---|---|---|
| Income Tax Relief | Up to 50% | Up to 30% |
| Capital Gains Relief | 100% reinvestment exemption | 100% exemption after three years |
| Investment Limit | £100,000 per tax year | £1,000,000 per tax year (or more, if co-investment) |
| Company Age | Less than 2 years old | Less than 7 years old |
| Risk-to-Capital Condition | Mandatory | Mandatory |
Both schemes aim to turbocharge the UK startup scene. But SEIS is for very early-stage companies. EIS kicks in once a startup has grown a bit.
Why Use SEIS & EIS Equity Crowdfunding?
- Tax relief: A big carrot to offset risk.
- Diversification: Spread bets across several startups.
- Access: Back innovative ventures you believe in.
- Community: Join like-minded investors.
With tax relief covering 30–50% of your investment, you can take bolder swings. That’s the magic of EIS equity crowdfunding.
How EIS Equity Crowdfunding Works in the UK
Let’s walk through a typical EIS equity crowdfunding journey.
Find a platform
Browse opportunities on an FCA-approved site. Platforms vet businesses for you.Review details
Check the pitch deck, financials, terms. Look at eligibility for EIS relief.Invest
Pledge funds. Submit your tax details. Platforms handle paperwork.Receive shares
Once the round closes, you get equity in the company.Claim tax relief
Use the SEIS/EIS certificate to offset income tax in your Self Assessment.Monitor performance
Keep track via platform updates. Some offer dashboards, webinars and reports.Exit options
• Sale or trade sale
• Dividends (if profits allow)
• Public listing
Simple? A bit. But the devil’s in the details. That’s why educational resources matter.
Why Commission-Free Matters
Most platforms charge a commission on every deal. Often around 5%. That eats into returns. With EIS equity crowdfunding, every percent counts.
Oriel IPO flips the model. No commission. Zero fees on successful raises. That means:
- More money directly to startups.
- Higher net returns for you.
- Transparent pricing from day one.
We curate deals. We focus on SEIS & EIS-qualified startups. And we pack in education: articles, webinars, financial modelling guides. You get support, not surprise fees.
The result? Clean, simple, cost-effective investing.
Getting Started on Oriel IPO’s Platform
Ready to dive in? Here’s how to kick off your EIS equity crowdfunding journey with Oriel IPO:
- Sign up for a free account.
- Complete your investor profile.
- Browse curated campaigns.
- Join a live Q&A or read expert guides.
- Pledge your chosen amount – commission-free!
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We also offer:
- Educational playbooks on tax relief.
- Real-time analytics dashboards.
- A community forum for peer insights.
No hidden charges. No complex tiers. Just good old-fashioned, commission-free investing.
Real Investor Returns: Tax Benefits in Action
Warren invests £20,000 under EIS. Here’s the breakdown:
- Income tax relief: £6,000 (30%).
- Net investment: £14,000.
If his portfolio grows by 50% over three years:
- Value jumps to £30,000.
- Capital gains relief: full exemption on profit (£10,000).
His real gain? A tidy £16,000. All while paying less income tax.
That’s the power of EIS equity crowdfunding when you harness the proper platform.
Risk Management and Due Diligence
No venture is risk-free. Even with tax relief. Here’s how to stay sharp:
- Spread your bets: Don’t go all-in on one startup.
- Read the fine print: Look at use of funds, team background, market size.
- Leverage our resources: Use Oriel IPO’s webinars and model templates.
- Keep cash aside: Only invest what you can afford to lose.
Tax relief softens the blow, but startups can and do fail. A balanced approach is your best defence.
Comparing Other Platforms
You’ve heard of Seedrs and Crowdcube. They’re big names. Both are FCA-approved. Both host EIS equity crowdfunding opportunities. Yet:
- They charge commissions (up to 7.5%).
- Their educational materials can feel generic.
- Fees reduce startup capital.
Oriel IPO stands apart:
- Commission-free on every successful raise.
- Curated, tax-efficient opportunities only.
- In-depth educational suite tailored for UK investors.
It’s not about bashing the competition. It’s about giving you a better option.
Conclusion: Take Your First Step
EIS equity crowdfunding is a powerful tool. You get to back bright ideas. You benefit from tax relief. You spread risk across multiple ventures. And you can do it commission-free.
Oriel IPO makes it simple. We handle the paperwork. We vet deals. We educate. You invest with confidence.
Ready to get started?
