How much money can I raise under SEIS or EIS?

📘 Overview

This article explains how much a company can raise under the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). It also outlines how the two schemes interact, typical funding routes, and how state aid rules affect SEIS limits.

The amount you can raise depends on which scheme you use. Many early-stage companies begin with SEIS, then progress to EIS as they grow.

🚀 SEIS: Seed Enterprise Investment Scheme

Company Cap

For shares issued on or after 6 April 2023, a company can raise up to £250,000 in total under SEIS.

For shares issued on or before 5 April 2023, the older limit of £150,000 applies.

When checking the company cap, you must include:

• All SEIS investment you have already received

• Any de minimis aid received in the three years before the SEIS investment

Other Key SEIS Limits

Gross assets limit: £350,000 at the date the shares are issued

Trading period or company age: Company must be within its first three years of trading

Investor cap: Each investor can claim SEIS on up to £200,000 per tax year

These limits took effect from 6 April 2023.

EIS: Enterprise Investment Scheme

Once a company reaches the SEIS cap or no longer qualifies for SEIS, it can raise funds under EIS. The EIS limits are significantly higher.

Key EIS Limits

Annual raise limit: £5 million

Lifetime limit: £12 million

Knowledge-intensive companies (KICs):

• Up to £10 million per year

• Up to £20 million lifetime

🛣 Typical Funding Route

Many early-stage companies follow a common pattern:

• Raise up to £250,000 under SEIS, if eligible

• After the SEIS limit is reached, raise further investment under EIS

If you are running a combined funding round, SEIS shares must be issued before EIS shares. You cannot issue EIS shares first and then issue SEIS shares at a later point in the same round.

🔍 Interaction with State Aid and De Minimis Aid

SEIS is treated as de minimis state aid. This means any other de minimis aid your company has received in the previous three years must be added to the SEIS amount when checking whether you are within the SEIS cap.

Some government grants and subsidies count as de minimis aid. If you have received these, they may reduce the maximum SEIS amount you are allowed to raise legally.

Key Practical Points

• SEIS is designed for very early-stage funding and has strict asset, age, and investment caps

• EIS offers higher limits once your company grows beyond SEIS eligibility

• Always consider whether previous grants count as de minimis aid, since this can reduce your SEIS capacity

• For mixed rounds, issue SEIS shares first to avoid invalidating investor relief