Joined by investors Dominic Keen and Angelika Burawska and seed-funded startup founder Aran Bates, Wealth Club’s Alex Davies takes a behind-the-scenes look at seed-stage investing in the UK, and the impact the Seed Enterprise Investment Scheme (SEIS) has on entrepreneurship and the wider UK economy.

Introduced in 2013, the SEIS aims to encourage experienced investors to invest in very early stage companies. Because of the high risks, the scheme provides tax incentives including income tax relief and capital gains tax relief of up to 50% of the sum invested. SEIS investment may be among the first equity funding these small, often technology-focused companies receive.

We talk to two leading SEIS fund managers – Angelika Burawska from SFC Capital and Dominic Keen from Britbots – and Aran Bates, co-founder of Hydrologiq, a startup that’s recently received seed funding from both SFC and Britbots.

IMPORTANT: The opinions expressed in this video are the panellists’ own and do not necessarily reflect the view of Wealth Club Limited. This interview, like our service, is not advice. SEIS investments are high risk and illiquid. You could lose your capital. Tax rules can change and tax benefits depend on your circumstances. If you’re unsure an investment is right for you, please seek professional advice.

In this interview:
0:00 What is the Seed Enterprise Investment Scheme (SEIS)?
1:08 Meet the founder and two investors
1:28 Why is SEIS such a good scheme?
2:36 What are the six main tax benefits?
3:44 Founder perspective: what was it like raising investment with SEIS?
4:57 What appealed to investors about Hydrologiq?
6:12 How important are SEIS reliefs in motivating early investors?
7:00 Is Hydrologiq a typical example of an SEIS investment?
8:48 Economic climate in 2022 – how’s this affecting SEIS investors and companies?
11:55 Where are the interesting opportunities in today’s economy?
13:26 Biggest challenges for SEIS investors at the moment?
15:01 How hard is it for seed stage companies to raise money?
16:13 How easy a place is the UK to set up a business?
17:17 Is it a good time to invest under SEIS?

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The Tax-Efficient Investor – by Wealth ClubBy Wealth ClubMay 24, 2021