Using a venture capital scheme to raise money

There are three different types of venture capital schemes and each scheme has its own qualifying criteria.

The Enterprise Investment Scheme (EIS)

Your company (or group of companies if you’re a parent company) may qualify if at the time of investment, it has:

• no more than £15 million in gross assets
• less than 250 employees
• been no more than seven years since its first commercial sale

There may be higher limits if your company carries out research, development or innovation and meets certain conditions.

Find out more about the Enterprise Investment Scheme.

The Seed Enterprise Investment Scheme (SEIS)

Your company (or group of companies if you’re a parent company) may qualify if it is less than two years old, and at the time of investment has:

• no more than £350,000 in gross assets
• less than 25 employees
• not previously carried out a different trade

You will not qualify if you’ve already had investment through the Enterprise Investment Scheme or a Venture Capital Trust.

Find out more about Seed Enterprise Investment Scheme.

Venture Capital Trust (VCT)

A VCT is a company that has been approved by HMRC and invests in, or lends money to, unlisted companies.

A VCT may invest in your company if it has:

• no more than £15 million in gross assets
• less than 250 employees
• not been more than seven years since its first commercial sale

There may be higher limits if your company carries out research, development or innovation and meets certain conditions.

Find out more about Venture Capital Trusts in the HMRC manual.

Social Investment Tax Relief (SITR)

Tax reliefs under the SITR scheme are not available for new investments made on or after 6 April 2023.