criteria expanded to include companies up to three years old, up from the previous two-year limit.
● EIS Limits: The EIS continues to offer 30% income tax relief on investments up to £1 million annually, or up to £2 million for investments in knowledge-intensive companies. Investors can also benefit from capital gains tax (CGT) deferral and loss relief on unprofitable investments. Impact Metrics ● SEIS: By the end of the 2022–2023 tax year, SEIS had facilitated over £1.9 billion in investment across more than 16,000 companies since its inception in 2012. In the 2022–2023 tax year alone, 1,815 companies raised a total of £157 million under SEIS. ● EIS: Since its launch in 1994, EIS has unlocked over £32 billion for more than 56,000 companies. In the 2022–2023 tax year, 4,205 companies raised a total of £1.957 billion under EIS. ● Investor Behavior: A 2020 UK government evaluation found that 70% of SEIS-funded companies would not have been able to raise capital without the scheme, and 78% of investors reported that SEIS relief was a deciding factor in their investment. Regional and Sectoral Reach While London and the South East continue to dominate SEIS and EIS investment, accounting for approximately 65% of total funds raised, there has been notable growth in regional hubs. Cities such as Manchester, Edinburgh, Bristol, and Belfast have emerged as significant centers for early-stage investment, supported by local incubators and innovation ecosystems. Sector-wise, the Information and Communication sector remains prominent, with companies in this category accounting for 39% of SEIS investment and 34% of EIS investment in the 2022–2023 tax year. Company Spotlight: Gousto (EIS-backed) Gousto, a meal-kit delivery startup now valued at over £1 billion, is a leading example of EIS’s catalytic potential. Early-stage funding from EIS investors enabled Gousto to expand operations, hire talent, and invest in technology before venture capital became available. The company later attracted institutional funding from Unilever and SoftBank. Several of Gousto’s angel investors were able to reinvest returns into new startups, demonstrating the compounding effect of a well-structured early-stage capital ecosystem.
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