New Money Pounds Deep into the SEIS Fund Jungle
Since the British election on July 4th, the Seed Enterprise Investment Scheme (SEIS) has become the hottest ticket in town. Wealth Club saw investment inflows soar nearly three‑fold compared to last year, and the number of hands dipping into early‑stage companies has tripled.
Why the Boom?
- Tax‑savior vibes: With rumours of new tax hikes—especially capital gains tax (CGT)—many higher‑net‑worth folks are sprinting to the SEIS shield.
It offers up to 50 % income tax relief and another 50 % on any gains, effectively letting you spend only £48,000 of a £100,000 haul. Once you get profits, they fly tax‑free. - Happy‑money mood: The venture world has been a bit cold lately—valuations and fundraising dipped. Lighter skies and lower prices mean brave investors can snag better deals.
- Future‑sure promise: The extension of the EIS/VCT saga to 2035 finally gave investors peace of mind after a shaky few years.
What Minds Are Saying
Alex Davies, the founder of Wealth Club, says: “You can feel the vibe—UK startups and the economy are getting a fresh dose of energy. The appetite for rolling out the early‑stage rub is back.” He believes the trend could spark a virtuous cycle: better sentiment → more funds to nascent firms → job gains and economic boost → even greater investor confidence.
Suggested Funds for the SEIS Game
- SFC Capital – the original go‑to for seed investors. Their Startup Funding Club SEIS Fund targets tech but keeps door open to all sectors. Over 15 exits delivered so far, with Cognism (machine‑learning marketing) scratching a 35.5× return on a ÷¾ stake.
- Fuel Ventures – built by entrepreneur‑turned‑investor Mark Pearson. It tackles SaaS, online platforms, and marketplaces. Though exits are still early, the fund’s output stands at £16.9 m invested, £18.7 m today (Aug 2024).
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