F*CK TAXES - SEIS & EIS Explained

Every year around this time, two things happen across the UK startup ecosystem.

Founders start rushing to close the final part of their funding rounds. At the same time, investors begin reviewing their tax exposure before the end of the financial year.

This is when SEIS and EIS suddenly become very relevant.

These two government schemes were created to encourage investment into early-stage companies. In return, investors receive some of the most generous tax incentives available in the UK.

Yet many investors either forget about them or realise too late that they could have used them.

If you understand how these schemes work, startup investing becomes significantly more attractive from a risk and tax perspective.

And right now, the window to use those benefits before the financial year ends is closing fast.

That is exactly why we are hosting a special investor event next week in London.

Tuesday, 17 March.

The goal is simple: bring together investors who want to deploy capital before the tax deadline and founders who still have SEIS or EIS allocation available.

Why SEIS Exists

The Seed Enterprise Investment Scheme (SEIS) was designed by the UK government to encourage early-stage investment into startups.

Early-stage companies are risky by nature. Many of them fail before reaching scale. To compensate investors for taking that risk, the government provides significant tax relief.

This creates a unique investment structure where the downside is heavily protected while the upside remains unlimited.

The Key Benefits of SEIS for Investors

SEIS provides several powerful tax advantages that significantly change the risk profile of startup investing.

Income tax relief

Investors receive 50% income tax relief on their investment.

For example, if you invest £10,000 in a SEIS-qualified startup, you can reduce your income tax bill by £5,000.

Your real exposure immediately drops from £10,000 to £5,000.

Loss relief protection

If the company fails, investors can claim loss relief against their income tax.

Depending on your tax bracket, this can reduce your real downside even further.

In many situations, the true risk on a £10,000 investment ends up being around £2,000–£2,500.

In other words, roughly 20–25% of the original investment.

Tax-free upside

If the company succeeds and the shares are held for at least three years, any capital gains are completely tax free.

This means investors keep 100% of the upside.

When you combine these elements, SEIS creates a highly asymmetric investment structure.

Downside protection is strong.

Upside potential remains unlimited.

This is one of the reasons many experienced angel investors build diversified portfolios using SEIS-qualified startups.

How EIS Expands the Opportunity

For companies that are slightly more mature, the UK offers a second scheme: the Enterprise Investment Scheme (EIS).

EIS works in a similar way but applies to companies that are further along in their development.

The key benefits include:

  • 30% income tax relief on investments

  • Capital gains tax exemption on successful exits if shares are held for the required period

  • Capital gains tax deferral from other investments

While the protection is slightly lower than SEIS, EIS still provides significant tax advantages and is widely used by angel investors across the UK.

Together, SEIS and EIS form the backbone of early-stage startup investment in Britain.

Why Timing Matters

These tax advantages only apply within the financial year when the investment is made.

Once the tax year ends, the opportunity resets.

That means investors who were planning to use SEIS or EIS benefits must deploy capital before the deadline.

As a result, the final weeks before the end of the financial year tend to be the busiest period for angel investments.

Founders are closing rounds.

Investors are finalising allocations.

Deals move faster.

A Last-Minute Opportunity for Investors

Because of this timing pressure, we organised a special event to bring both sides together.

Next Tuesday, on March 17, we are hosting:

The format is simple.

Ten startups that are currently raising and still have SEIS or EIS allocation available will pitch to a curated room of investors.

Each founder will present:

  • 1 minute pitch

  • 1 slide

  • followed by a short Q&A.

This fast format allows investors to quickly understand the opportunity before continuing deeper conversations during networking.

The Startups Pitching

We received more than 100 applications and carefully selected the companies pitching at the event.

The lineup includes startups across several sectors including AI, SaaS, health tech, sports tech and marketplaces.

The companies pitching include:

  • Rare Founders 2.0

    A real-world social graph and relationship intelligence platform that maps trust, influence and connection strength using behavioural data from real-world and digital interactions.

  • ATHLEET

    A SaaS platform helping grassroots and semi-professional sports teams track player wellbeing and mental performance while giving coaches real-time insights into team culture and performance.

  • Wellcast

    A discovery platform for fitness that connects users with high-quality training content while helping trainers scale their audience and revenue.

  • Air Aware Labs

    A health technology company that turns air pollution data into personalised health insights to help individuals understand and reduce environmental health risks.

  • Blue Light Escapes

    A travel and wellness marketplace designed for blue light and armed forces communities, helping them access affordable rest, recovery and wellbeing experiences.

  • Inclusive

    An AI-powered hiring platform that transforms recruitment from a cost centre into a revenue driver through a transaction-based applicant tracking system.

  • Rev-Geni.ai

    AI-powered digital teammates that help resource-constrained B2B founders automate and improve sales and marketing workflows.

  • DECADES

    A travel platform designed for retirees seeking structured “gap year” style experiences, combining curated travel with AI-driven operations.

  • Pitchflix TV

    A platform helping startups, investors and accelerators engage more effectively through video-based pitching while generating deep qualitative data on startup ecosystems.

  • Knovari

    An enterprise AI security layer that protects confidential data while allowing organisations to safely extract insights from AI systems.

All of these companies are currently raising and have SEIS or EIS allocation available for this financial year.

For investors this means two things.

Access to curated startup deal flow.

And the ability to deploy capital in a tax-efficient way before the deadline.

A Curated Room of Investors and Founders

This is not a large conference.

We intentionally keep the room curated.

Every attendee is reviewed before approval to ensure the right mix of founders and investors.

The goal is not volume.

The goal is meaningful conversations and real investment opportunities.

Over the past two years Rare Founders has hosted more than 50 events across the UK, bringing together thousands of founders and investors.

The focus has always been the same: creating environments where real connections and deals can happen.

Join Us Before the Financial Year Ends

If you are an investor looking to reduce your tax bill while accessing high-quality startup deal flow, this event is designed for you.

The financial year deadline is approaching quickly, and once it passes the opportunity resets until next year.

Rare Founders

F*CK TAXES: The Last Minute SEIS and EIS Pitch

This is a highly curated pitching night for founders raising under SEIS/EIS and active angel investors looking for quality deal flow and tax efficiency. We manually review and approve every single attendee to keep the room strong and relevant. Expect 10 carefully selected startups, sharp 1-minute pitches, short Q&A, and focused networking designed to get rounds closed.

In-person event

The Ministry, Borough, 79-81 Borough Rd, London SE1 1DN, UK

Tue 17 Mar, 18:00 - 22:00 GMT

DISCLAIMER

We are not FCA regulated. We do not give financial advice. All investments are at your own risk. We take no responsibility for any connections made at this event. Founders and investors must do their own due diligence before signing any deals. We simply bring people together.

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Vasily Alekseenko
Founder
@ Rare Founders

Rare Founders - building the bridge between founders and investors via regular in-person and online events, meetups, conferences.

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