35 EIS Funds to Pitch Your Startup to in 2024
Are you a founder running a UK-based startup? Are you looking for investment to fuel your company’s next stage of growth?
If you answered yes to the above, then my last question is … have you heard of Enterprise Investment Scheme (EIS) funds?
What is EIS?
EIS is a UK-centric investment scheme that encourages investors to deploy funds into startups with high growth potential in return for attractive tax breaks, and it could just be the perfect route to funding for your startup. Below, we’ve listed 35 EIS investors to pitch your startup to in 2024.
What is the benefit of EIS for investors?
EIS investing provides investors tax benefits such as a 30% income tax reduction, relief for losses, exemption from inheritance tax, and exemption from capital gains tax upon exiting investments.
What is the benefit of EIS for founders?
Founders who choose to focus on building sustainable businesses with more conservative growth/exit profiles of 5x-10x may favour taking capital from an EIS fund, rather than a traditional VC that targets 50x-100x returns. EIS funds can target investment opportunities with a steadier growth/exit profile, given that their investments are already de-risked due to the tax incentives they provide to investors from the outset.
Are you eligible for EIS investment?
Depending on the type of business you’re building, you may be eligible for two types of EIS investment: non-Knowledge Intensive and Knowledge Intensive. You’re likely to be eligible if your startup meets the following criteria:
- Geography: The business has a permanent establishment in the UK
- Raise Amount: £5m annually (or £10m if your company is Knowledge Intensive) and a maximum of £12 million over your company’s lifetime (£20m if Knowledge Intensive)
- Traction: despite revenue not always being a pre-requisite for funding, investors often look for strong customer interest in their product or service, a large addressable market, a scalable business model and a high growth potential
- Sector: All sectors qualify, other than real estate & construction, professional services, and FCA-registered companies
What do you need to secure EIS investment?
At Mountside Ventures, we have a best-in-class track record in advising startups on successfully raising this type of capital from all types of investors and EIS funds are no exception, so we know exactly what you need to make it happen. We also have long-standing relationships with all the EIS funds in the UK, so if you’re looking for investment, please reach out to me directly via email at bheven@mountsideventures.com!
Here are the basics you’ll need to get started:
- Advanced Assurance: This is HMRC’s pre-approval of a company’s EIS eligibility. We have a network of legal and tax professionals that we can connect you with, to help your company obtain this assurance.
- A compelling pitch deck: You’ll need a well-crafted pitch deck that effectively communicates your vision, traction, and growth profile to EIS investors. When you work with us, we’ll help you construct and deliver your story in a way that appeals to investors.
- Financial model: Much like a pitch deck, a financial model also tells investors a story through numbers, aka financial projections. We’re on hand to help you construct these to showcase an attractive growth profile and capital-efficient strategy that will entice EIS funds to explore your startup as a quality investment opportunity.
Are you still unsure whether you’d qualify for EIS?
If you’ve recently heard those three pesky words … ‘you’re too early’, perhaps your start-up is more of a fit for the Seed Enterprise Investment Scheme (SEIS). This type of capital is better suited to very early-stage start-ups given the higher risk/reward profile this scheme offers investors, notably tax relief of 50%, as opposed to the 30% from EIS.
Does EIS sound right for your start-up?
Over 4,000 companies in the UK benefit from EIS funding each year. With your grit (and our leg up), there’s little doubt your company will be one of them!
Here’s a list of 35 EIS investors to pitch your startup to in 2024:
Based in London, the venture capital firm was founded in 2013 and invests in pre-seed and seed companies with a growing exploration of ‘tech for good’ solutions that are improving the well-being of society.
Based in Gloucester and founded in 1996, Blackfinch is an investment management firm that manages EIS portfolios and several VCTs. They invest in high-growth tech start-ups with at least £500k+ ARR.
3. Britbots (British Robotics Scale-up)
Based in London and founded in 2017, Britbots is an EIS fund that invests in early-stage robotics, AI and automation companies, with a focus on those that are developing commercial applications.
Based in London, the investment management firm was founded in 1999 and manages EIS portfolios and VCTs. They invest in a wide range of sectors, including SaaS, healthcare, and entertainment.
An EIS student-led fund that invests in UK businesses where at least one member of the founding team is a professor, PhD, student, or recent graduate.
Manchester-based, EHE Ventures, focuses on early-stage and growth investments in Artificial Intelligence.
Based in Bristol, having raised its debut EIS fund this year, the team will invest in deep science companies across photonics/quantum hardware, life sciences, advanced materials as well as robotics/automation
Based in London, the EIS fund invests in B2B Software companies that are in the £1m — £4m pre-money valuation range. The firm was founded in 2020.
Foresight Group’s Venture Capital arm is an early-stage tech investor in deep tech and enterprise software Seed and Series A startups.
Based in London, Fuel Ventures is an EIS fund that invests in Pre-Seed and Seed stage B2B and B2C companies. The firm was founded in 2014.
Based in London, the EIS fund invests in Pre-Seed and Seed B2B SaaS companies. The firm was founded in 2013.
The London-based fund targets early-stage and late-stage opportunities in the technology, fintech, healthcare, environmental technology and life science spaces.
Based in London, IW Capital invests in a range of sectors, including healthcare, education, and consumer goods. The firm was founded in 2011 and focuses on structuring not only EIS, but other types of creative growth funding for scaling businesses.
An EIS fund that invests in early-stage companies in the fintech, proptech, regtech and consumer software sectors.
15. Mercia Asset Management EIS
Based in Henley-in-Arden, the EIS fund invests in early-stage businesses in the tech, life sciences, and digital sectors.
Based in London, the venture capital firm was founded in 2000 and invests in early-stage tech companies in sectors such as fintech, healthtech, and B2B.
Based in London, the EIS fund manager invests in early-stage companies in the tech, B2B SaaS, and data sectors.
An EIS fund that invests in early-stage companies that are focused on carbon reduction and climate change.
Based in Oxford, the investment management firm manages EIS funds. They invest in Seed and Series A stage businesses in sectors such as digital health, climate tech, fintech, mobility, future of work and future of retail.
Based in Oxford, the EIS fund invests in early-stage companies in the tech sector.
Based in Edinburgh, the EIS fund invests in Northern-based Seed and Series A businesses in the B2B and deep tech domains.
Based in London, Parkwalk Advisors invests in early-stage companies in sectors such as science and tech, with a focus on those that are commercializing intellectual property and spun out of universities.
Based in London, Portfolio Ventures was founded in 2014 as a private investor network and has now invested from their EIS funds into a portfolio of companies across FinTech, InsurTech, B2B SaaS and enterprise software.
Based in Manchester, Praetura invests in early-stage businesses in a range of sectors, including AI, gaming, healthtech, life sciences and cybersecurity.
Based in London, the private equity fund invests in early-stage companies agnostically.
An EIS Fund that invests in early-stage deep tech companies with a focus on tech that have the potential to improve healthcare, quality of life, and the environment around us.
Based in Cambridge, Syndicate Room’s Access EIS fund invests in 50+ angel backed companies a year. They are a sector agnostic investor.
Based in London, the EIS fund invests in early-stage companies making an impact, within the hardware space.
29. The Side by Side Partnership
Based in London, the EIS fund invests in fast-growing consumer and B2B SaaS companies with £1m — £10m in revenue.
Based in London, the investment management firm manages EIS funds and VCTs. They invest in early-stage B2B software companies sectors including fintech, data, AI, healthcare, vertical SaaS and energy.
This EIS fund, incorporated in 2021, is based in Wales and invests in founders building companies with the potential to create high-productivity, high-wage, highly skilled jobs in local Welsh communities.
Based in London, one of the firm’s activities is managing an EIS fund and investing agnostically.
Based in London, the EIS fund invests in early-stage companies that are focused on sustainability and social impact.
Based in London and founded in 2015, the EIS fund invests in early-stage consumer and technology companies
Venrex is a London-based, early-stage venture capital fund manager founded in 2002. They back founders of innovative, tech-enabled businesses, primarily (but not solely) in consumer industries.
How can we help?
Mountside Ventures is an award-winning accelerator and advisory firm, specialising in early-stage fundraising and exits, on a mission to optimise the fundraising process for founders and funds. For pre-seed and seed startups, we run free investment accelerator programmes. For Series A and Series B companies, we provide fractional CFO and fundraising support, enabling them to raise their Next Round of funding faster, and more efficiently and causing the least disruption to their business.
With our expertise and resources, we empower startups to present a compelling case to EIS investors and maximise their chances of success in securing funding.
If you’re raising your next round in the next 6–9 months, get in touch with us here or reach me directly via email at bheven@mountsideventures.com for an intro call.
