Fuel Ventures deploys £5M in SEIS Funding amidst Labour's 'bad budget'

Fuel Ventures has announced it has 5 million in Seed Enterprise Investment Scheme (SEIS) funding to be deployed into startups, as investors increasingly turn to tax-efficient investment strategies, attributing the funds to Labour's 'bad budget.'

The SEIS, a government-backed initiative, is designed to encourage private investment in early-stage businesses by offering significant tax incentives. Fuel Ventures has seen an influx of interest and investment from high net-worth individuals and IFAs and attributes the increasing recognition to the Labour government's 'bad budget'.

With SEIS, investors can claim 50 per cent Income Tax relief on their investment, making it a highly attractive option following Labour's changes to Capital Gains Tax (CGT) in the Autumn Budget. Since April 2023, the annual SEIS investment limit has also doubled from £100,000 to £200,000, further amplifying its appeal.

According to Mark Pearson, founder of Fuel Ventures, SEIS investments may carry a higher risk than traditional assets, but the substantial tax incentives help offset that risk—making them an increasingly attractive option in today's market.

"We've already seen an influx of investors leveraging these methods to support high-potential businesses. 

"With our current SEIS fund, we're providing early-stage companies with the capital they need to scale while giving investors access to high-growth opportunities with significant tax advantages."

The news follows Fuel Ventures' recent Dragon's Den investment analysis, which reveals that over 21 seasons, the Dragons collectively have invested only £15.5 million. In the next month alone, Fuel Ventures will look to invest £2 million more than Peter Jones's total during his entire 20-year history on the show.

Lead image: Fuel Ventures. Photo: uncredited.