This morning, HMRC released the 2024-25 EIS and SEIS figures. The HMRC data shows that funding has remained consistent, with the figures almost identical to the previous year.
In 2024-25, 3,735 companies raised a total of £1,575 million funds under the Enterprise Investment Scheme (EIS), while 2,430 companies raised £276 million under the Seed Enterprise Investment Scheme (SEIS).
Industry, tech and VC experts have shared their thoughts on the latest figures, and what they mean for tax-efficient investments.
Christiana Stewart-Lockhart, Director General of the Enterprise Investment Scheme Association (EISA), said:
“The data tells a story of resilience and genuine regional momentum. After two years of decline, EIS investment has stabilised, and SEIS continues to rise, signalling that the schemes continue to back Britain’s most ambitious businesses. There was a 11% increase in the number of Knowledge Intensive Companies (KICs) benefitting from the EIS with a total of 525 companies. This figure is expected to grow in 2026-27 as the impact of the government’s recent doubling of funding limits starts to take effect.
“Particularly encouraging is the spread of investment beyond London, with the EIS investment in the North East doubling, and the East Midlands seeing a 125% increase in investment through the SEIS. Elsewhere, we also saw growth of EIS investment in the North West, the West Midlands, Scotland and the South West. This is a clear sign that these schemes are increasingly working for the whole of the UK. However, the number of individuals investing through the EIS is down 7%, and further awareness is needed”.
Joanna Jensen, Chair of the EIS Association, said:
“Today’s data tells the story of two schemes heading in different directions. Early stage SEIS continues to go from strength to strength, with investment up 14%, clear proof that the reforms introduced in 2023 are working, and that appetite for backing Britain’s earliest-stage companies remains strong. EIS is a different picture. Investment has held flat, and the number of investors backing British growth businesses through the scheme has fallen again to around 33,000, from roughly 40,000 just two years ago.
“EIS remains one of the most successful schemes of its kind anywhere in the world, but a shrinking investor base is not the mark of a scheme reaching its potential. The challenge is not the scheme itself but awareness. Far too few of the 2 million higher-rate tax payers who could be supporting British business through EIS know the opportunity exists.
“That is why we will keep making the case for a coordinated effort to raise awareness, and why the modernisation of EIS secured in the Autumn Budget, the first meaningful changes in over a decade, matters so much. Those changes are not yet reflected in this data, and we expect them to make a real difference in the years ahead. Britain does not lack ambitious founders or good ideas. What it needs is more people putting capital to work behind them.”
Duncan Johnson, CEO, Northern Gritstone, said:
“It’s encouraging to see the increased utilisation of these schemes across the UK, with the North of England being a primary driver of regional growth. Investors are unlocking early-stage tech developed away from London at unprecedented rates, demonstrating an appetite for genuine innovation outside of the capital. The UK’s economic narrative is undergoing a necessary shift whereby the fastest growth is being realised away from the London and the South East.
“For too long, conversations around regional investment have been framed through the lens of potential rather than performance, but the reality on the ground is changing fast, and recent data shows that areas like the North of England are on a strong upward trajectory. To truly seize this moment, we must look at the bigger picture.
“The North is not operating in a vacuum; it is an integral pillar of what we call the UK’s ‘Technology Diamond’, anchored by the world-class research and commercialisation hubs spanning London, Oxford, Cambridge, and our Northern Arc. By collaborating closely and intentionally linking these clusters, we aren’t just building local champions, we are bridging ecosystems to create a unified technological superpower that competes on the global stage.”
Tim Mills, Managing Partner at ACF Investors, said:
“The stall in EIS funding reflects a generationally tough environment for entrepreneurs, with fewer prospective founders willing or able to take the substantial risk of starting a business. The post-2021 heyday hype has died down, and macroeconomic pressures, high taxes, and geopolitical uncertainty have all contributed to the decline.
“However, this creates a time for a strategic reset. With valuations at reasonable levels – especially outside the AI hype –it is actually a great time to be investing. Investors who are willing to play the long game have an opportunity right now to back exciting new companies at the right price. 2025 will likely prove a low point and we expect regional investment to start trending upward again, which sends a positive sign for the future of the UK’s technology ecosystem.”
Nnamdi Emelifeonwu, CEO & Co-Founder at Definely, said:
“Definely would not be a successful late-stage technology company if it were not for both the SEIS and EIS. We were only able to close our initial seed round through additional commitments from angel investors, who, in turn, could commit only because of these schemes. As a company that’s now raised its Series B, it’s encouraging to see the stabilisation of EIS utilisation and the continued growth of SEIS use. At a time where AI technology competition shows no sign of slowing, these schemes will continue to place the UK in the spotlight as a place to start and grow a business.”
Nishil Patel, Director, MMC, said:
“The UK now has one of the world’s leading tech and science ecosystems in the world, behind only US and China. For more than 30 years, EIS has been a critical source of capital for UK innovation, particularly against a backdrop of historically low levels of investment from domestic institutions into early-stage companies. Where MMC alone has invested almost £500m.
“In the current climate the role of EIS is arguably more important than ever. The UK economy is at an inflection point, and high-growth early-stage businesses will be central to driving productivity, competitiveness and future economic growth. It is therefore important that all key stakeholders including HMRC remain alert to the opportunity EIS represents.
“This should not be viewed as a zero-sum market. Capital channelled through specialist investors increases the probability that more home-grown businesses can scale into global leaders. Government has clearly recognised this, with the extension of EIS limits, increasing both the scope and relevance of the scheme, while also providing greater certainty by extending the sunset clause to 2035. Tens of thousands of individuals invest into EIS qualifying companies each year. Whilst liquidity is currently an issue across private markets, the best outcomes in EIS and venture are typically achieved by investing consistently through market cycles.
“This moment is therefore somewhat paradoxical, macro risk remains elevated, yet we are also seeing a Cambrian explosion of technological innovation driven by artificial intelligence and deep tech. This at a time where there is a significant shift in financial services towards private assets. For individuals that have the right level of risk appetite, especially those that can’t access traditional venture capital funds, EIS remains one of the most attractive and tax-efficient entry points into that opportunity.”
Matthew Moynes, Director at Calculus Capital, said:
“It is encouraging to see the latest EIS raise figures for 24/25. It shows the generous tax benefits continue to drive capital into the early-stage UK ecosystem. There is always a lag in the data available from HMRC, so it will be interesting to see how the total EIS fundraising figures compare with EIS fund manager activity for the 2025/26 tax year.
“Recently published fund manager data from independent researchers indicates a decline in the amount raised, remembering this is different to total EIS capital raised by companies. This decline can largely be attributed to a lack of high multiple exits across the EIS fund industry over recent years. This is understandable given the less than optimal exit conditions during this period. A few good exits will go a long way to reenergising investor appetite. Exits are out there, and investors should remain excited for some good EIS portfolio news in the next 12 – 18 months.”
Jonathan Keeling, Partner at Haatch, said:
“The latest HMRC data is a useful reminder of what S/EIS quietly delivers. £34bn into 59,000 UK businesses since launch, with 46.5% of UK unicorns having taken EIS investment along the way. London still takes 63% of EIS capital, so backing high-quality founders outside the M25 matters. At Haatch, we do exactly that across B2B SaaS and AI, alongside the British Business Bank. Patient risk capital, deployed early and regionally, compounds into the next decade of UK tech.”
Moray Wright, CEO at Parkwalk, said:
“It is encouraging to see HMRC’s latest EIS data highlighting increased levels of regional investment, demonstrating the strength of innovation taking place across the UK. At Parkwalk, we continue to see exceptional deal flow emerging from our university partners nationwide, including through our collaboration with Northern Gritstone, which is helping to unlock high‑quality opportunities outside the traditional innovation hubs.
“Recent policy changes, including the doubling of annual and lifetime investment limits and the gross assets limit are also a positive step, enabling managers to support portfolio companies for longer and help them reach more advanced stages of growth.
“However, this is set against a challenging fundraising backdrop. Macroeconomic uncertainty combined with a continued lack of broader investor awareness around EIS has meant capital raising remains difficult, with industry fundraising levels reported to be down year‑on‑year for the 2025/26 tax year. In effect, while managers now have the ability to deploy more capital into companies, securing that capital has become more constrained.
“Looking ahead, upcoming changes to IHT rules and particularly the planned inclusion of pensions within the IHT net from April 2027 are likely to increase adviser and investor focus on EIS as part of a well‑diversified portfolio. Greater engagement on this front should help support future fundraising and ensure more capital is directed towards scaling the UK’s most innovative businesses.”
Nick Sudlow, Senior Manager, Investor Relations at Oxford Capital, said:
“The latest HMRC figures show that EIS fundraising held steady at the 2023/24 figure of £1.575 billion in 2024/25, following two years of decline, while SEIS continued to build momentum, with funds raised rising 14% to £276 million.
“The stability in EIS is encouraging, but the figures also show that the number of investors has fallen by 7%, suggesting capital is becoming more concentrated among larger tickets rather than coming from a broader base. This makes awareness all the more important, as EIS remains one of the UK’s most effective mechanisms for channelling private capital into ambitious businesses. With the reduction of income tax relief for VCTs now in effect, EIS is also the most efficient solution for individuals looking to reduce their income tax bill.
“The continued growth of SEIS since the 2023 expansion of its limits is a strong indicator of what’s to come for EIS. As higher limits take effect, we would expect more companies to take advantage of EIS fundraising for longer, supporting better diversification across portfolios and a broader range of later-stage opportunities for investors to take advantage of.”
Ed Prior, Head of Investor Services at SFC Capital, said:
“These figures show that the scheme is continuing to move into the mainstream of tax-efficient investing. The most encouraging point is not simply the growth in capital raised, but the broadening of the investor base and the increasing role of advisers in bringing suitable clients into SEIS. That reflects what we are seeing at SFC. Since the annual SEIS investor limit was increased to £200,000, more advisers have been willing to view SEIS as a serious planning tool for high-net-worth clients.
“We expect that momentum to build further. With the government’s recent pension changes forcing many investors to rethink long-term tax planning, SEIS is already becoming an increasingly important part of the adviser toolkit – offering tax efficiency while directing capital into the next generation of British growth companies.”
