The SEIS scheme should be considered by all growth focused start-ups for both proving investment potential and to attract cash-ready equity investors.

SEIS scheme for business funding

What is the SEIS scheme?

The Seed Enterprise Investment Scheme (SEIS) is a win-win for both businesses looking to raise capital at an early stage and for investors looking for tax efficient benefits in return for investment.

Designed to boost economic growth, SEIS investors can receive up to 50% tax relief in the tax year the investment is made, regardless of their marginal rate. This is great news for start-up companies looking for finance at a time in their business journey where other financial institutions are reluctant to invest at such a risky time.

Benefits to businesses looking for finance

Lots of SEIS service providers talk about the benefits to the investor of SEIS and as a side note the business receives funding to help its growth. We always view it from the point of view of the business looking to utilise the SEIS scheme to help fuel growth.

Benefit 1: As a young company with limited options for finance, SEIS can provide much needed growth capital. Benefit 2: Becoming pre-assured and gaining access to SEIS funding, your business will have strong backing for future finance raising. Benefit 3: Gaining access to SEIS investors also gives access to their expertise, which can fuel growth and future finance raising. Benefit 4: Applying for SEIS funding tests your business model / plan so you can be confident you're heading in the right direction.

Criteria for SEIS scheme applications

It is important to note the limitations of the SEIS scheme before applying as these rules need to be adhered to throughout the time period otherwise the investor could lose access to the tax saving benefits of the scheme. There are limitations on who can apply to the SEIS scheme:

SEIS scheme - Who can apply - Less than 25 employees, not under the control of another corporate identity, in a qualifying trade, no investment received under EIS or VCT before, money used in qualifying within 3 years, less than 2 years old.


Most businesses will meet the qualifying trade condition, it refers to specific industries such as: farming, land ownership, legal, accounting & financial services, leasing, property development, hotels & nursing home management, shipbuilding, coal & steel production, electricity generation and export.

If any of these limitations apply to you, why not take a look at EIS funding which may be able to help.

Next Level Business can support your SEIS strategy

We’re more than just an SEIS application company, we support you before you submit your application, during negotiations with investors, and post investment award. We’re always by your side.

Next Level Business SEIS Services: Advance assurance approval with HMRC, Investment ready documentation (pitch deck, shareholder agreements), Business valuation for purposes of investment, advice and negotiation as required, company and individual investor claims, negotiation meeting attendance and support, company secretarial execution, accounting for investment in the company, creation and maintenance of share capitalisation tables.

Get In Touch

We’ve only really given an overview of SEIS funding, and there is plenty more to think about to determine if it is right for your business. Get in touch and we can advise you based on your specific business.

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