Home Economy SEIS Puts New Spin On University Start-Ups

SEIS Puts New Spin On University Start-Ups

SEIS-Puts-New-Spin-On-University-Start-UpsThe Seed Enterprise Investment Scheme (SEIS) is helping university spin-out companies break new ground.

Cambridge University has sunk millions into start-up businesses through two investment funds – with a third ready for lift-off.

The funds are raising cash from the university’s alumni and their friends and families.

The money is staked against spin-out companies trying to carve a commercial niche for technology, medical and pharmaceutical research carried out by the university.

The university’s last SEIS fund raised £1.7 million capital for eight companies during the last 18 months.

Funding records broken

“One of the keys to our start-up funding is SEIS,” a university spokesman told <name> of specialist investment web site SEIS.couk.

“SEIS allows former students and friends of the university to target their investments within our spin-out program while benefitting from the tax breaks offered under the scheme.”

In return for an equity stake in a new company, investors can pick up some of the most generous tax breaks available:

A 50% reduction on income tax paid for investing up to £100,000, which is worth £50,000 for some taxpayers

Disposing of other assets to raise a SEIS stake gives investors a 50% capital gains tax exemption

If the spin-out company is successful, any proceeds from selling shares at the end of the three-year SEIS term are free of capital gains tax as well.

Even a failed company offers investors tax relief, as they can offset losses against other income.

SEIS has played a part in Cambridge University breaking start-up funding records for two consecutive years.

The third fund follows a total of £2.7 million of seed capital investments already this year, already ahead of last year’s total of £2.3 million.

Business confidence

SEIS is not only important to university spin-outs.

Industry experts say the business climate stoked by SEIS and Enterprise Investment Scheme (EIS) cash has led Britain to establish 11 of the G20’s 30 technology companies worth more than a billion dollars.

“Companies are feeding off the UK. Business leaders can draw on the best talent,” said Philipp Stoeckl, London’s Tech City UK Future Fifty director.

“Firms seeking to grow prosper from an increasingly favourable investment climate. Venture capital available to UK-based companies is increasing.”

Stoekl holds up companies like Zoopla, Asos and AO.com as shining examples of fast-growing technology firms that are benefitting from SEIS and EIS tax breaks coupled with an unrivalled talent pool.

Hossein Soltani
Hossein Soltani
Soltani has participated in several nationwide sports competitions and has won several titles in track and field. Hossein Soltani finished his secondary school in Tehran and moved to Sari with his family when he was 18. In that time he joined Pars Herald and helped the group to distribute its publications between the students living in Sari. Soltani attended the Azad University of Sari.

Stay Connected


Must Read

Huachuma – A Guide to the Plant Medicine San Pedro

Huachuma also known traditionally as The San Pedro Cactus, can be found throughout the Andes Mountains as they stretch across the South American countries...

Huachuma – A Guide to the Plant Medicine San Pedro

Huachuma also known traditionally as The San Pedro Cactus, can be found throughout the Andes Mountains as they stretch across the South American countries...

Periodic Table Is Elementary For Scientists

Scientists are in their element as they celebrate the 150thanniversary of the periodic table. The table has tortured physics and chemistry students trying to learn...

How Safe Is A Visit To The Caribbean?

Expats, tourists and business people visiting the Caribbean may well worry about their safety after a seemingly endless series of warnings and alerts over...

Related News

Are seed enterprise limits hindering entrepreneurs?

Chancellor George Osborne created the Seed Enterprise Investment Scheme (SEIS) in the Budget 2012 to launch small business startups via private investment. For the startups,...

Seed Enterprise Investment Scheme is the Investment Choice

The Seed Enterprise Investment Scheme (SEIS) offers tax breaks unlike any others available in the world for investors. By placing money into a UK-based...

Cable Targets Catapult Hubs With Extra Cash

Business Secretary Vince Cable is targetting extra funds for technology and innovation hubs across the UK. The catapult hubs are aimed at hothousing research in...

Your Crowdfunding Investment Choice Could Very Quickly Change

It has recently been discovered that investors using Crowdfunding to invest in a particular project may find their initial investment issued for an alternative...

SEIS Company Floats Giving Enormous Return

Abzena has successfully floated on the London Stock Exchange AIM market, raising £20 million and giving SEIS and EIS investors a 170 percent rate...


Please enter your comment!
Please enter your name here