Early-stage funding hits record high
The UK’s seed-stage investment ecosystem is experiencing a significant surge, fueled by recent policy expansions that have unlocked new capital for startups. According to the latest figures from HMRC for the 2024 to 2025 tax year, companies using the Seed Enterprise Investment Scheme (SEIS) raised £276m, a 14% increase from the £242m raised the previous year.
A total of 2,430 companies successfully secured SEIS funding in 2024 to 2025, up from 2,310 the previous period. The data paints a clear picture of an energised early-stage market, driven largely by the expansion of SEIS limits, which raised the maximum amount a company can secure from £150k to £250k.
New Limits, New Growth
The relaxed constraints have impacted how startups use the scheme. In the 2024 to 2025 tax year, 32% of companies raised over £150,000, accounting for 63% of all SEIS investment. Additionally, 1,775 companies were raising SEIS funds for the very first time, bringing in £229 million in fresh early-stage capital.
Geographically, London and the South East continued their reign as the UK’s startup hubs. Companies registered in these regions absorbed £181m, making up 66% of the total SEIS investment, mirroring trends seen in the previous year.
Investor Appetite Grows
The scheme’s generous tax reliefs continue to attract a growing base of angel investors. In 2024 to 2025, 11,200 investors claimed income tax relief under SEIS, up from 10,290 the year before. While half of these individuals invested £10k or less, high-net-worth investments played a major role, with investments exceeding £25k contributing to 66% of the total amount raised. Following the 2023 limit expansions that allowed individuals to claim relief on investments up to £200k, roughly 3% of investors deployed over £100k, representing nearly a quarter (23%) of all investment.
Looking Ahead: The Pipeline is Healthy
The momentum behind SEIS shows no signs of slowing down. HMRC reports that for the 2025 to 2026 period, 4,085 Advance Assurance requests were received for SEIS, a massive 24% increase from the prior year. With 76% of these already approved as of March 2026, the pipeline for seed-stage funding remains robust, promising another strong year ahead for the UK’s youngest, most innovative businesses.
Scribe is your intelligent co-pilot for private markets. We work with Founders, Asset Managers, Funds and Banks. To date, we’ve helped over 1000 organisations find Angel investors, extract data from PDFs and automate analysing companies.