Richard Harley

Pension funds enjoy a very material tax exemption privilege. I wonder if some element of that privilege should be linked to commitment to the sector, increased over time to stop a wall of money, where for example a vehicle like Adam proposes and/or direct investment would qualify. Pension funds free not to participate, might have a size threshold, but if they do not they pay some tax. Link that to whatever regulatory tweaks needed to ensure funds are not penalized for investing a portion in growth - rationally 4% has to be a perverse allocation, someone has got the rules wrong. It feels like it is not in their investors' interests, aside from the societal point of the need to support growth, the no.1 claimed objective of the incoming government.

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Why UK investors are going to ask you about “SEIS” and “EIS” 🚨 Confused about SEIS and EIS? 🤔 Don't worry, we've got you covered! 💡 Our latest podcast ep with Sam Simpson breaks down these UK government tax incentive schemes for investors, designed to encourage investment in early-stage startups. Think 50% tax relief, CGT exemption, and more! 🤑 But, can you invest in your own company using these schemes? 🤔 The answer might surprise you... 👀 Have you used SEIS or EIS for your startup? Share your experiences in the comments below! 💬 #SEIS #EIS #startups

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🚨 How will the UK’s new #Budget impact founders and investors? 🚨 Today’s Budget brought changes affecting founders and investors, particularly a hike in Capital Gains Tax (CGT) from 20% to 24% (effective tomorrow) and changes to BADR (rising from 10% today to 14% on 6 April 2025 and 18% from 6 April 2026-27). Tax efficiency has never been more important for founders. That’s why we’re thrilled to highlight our SEIS for Founders service! This is an invaluable opportunity for founders to save potentially millions in CGT at exit, as well as a number of additional tax benefits as detailed below. 👉 Learn if you qualify for SEIS for Founders: https://lnkd.in/e4bqFdbu #TaxEfficiency #SEIS #StartupGrowth

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Understanding SEIS and EIS: Boosting Startup Investments What are SEIS and EIS? ➡ SEIS stands for Seed Enterprise Investment Scheme and EIS stands for Enterprise Investment Scheme. These UK government initiatives incentivize investment in startups by offering significant tax breaks to investors. Benefits for Investors: 1️⃣ SEIS: Investors get 50% of their investment back in tax breaks. For example, if they invest £10,000, they'll get £5,000 back. Additionally, all returns from SEIS are exempt from capital gains tax if the shares are sold after at least 3 years. If the startup fails, investors are eligible for loss relief, which could be almost 50% of the loss depending on their tax bracket. 2️⃣ For a £10,000 investment, the net investment is £5,000 after immediate tax relief. With loss relief, capital at risk is further reduced. If an investor pays income tax at a rate of 35%, they can claim up to 35% of their net loss in income tax relief, which would be £1,750 in this example. Therefore, the capital at risk would be about £3,250. 3️⃣ EIS: Similar to SEIS, but with 30% initial tax relief. For a £10,000 investment, investors get £3,000 back instead of £5,000. ⏩ Conclusion: These schemes are fantastic initiatives by the UK government to encourage investment in technology startups. However, many people are unaware of them. To address this, the FCA should relax regulations around private equity investments, and there should be more awareness of SEIS and EIS among UK residents. Despite the existence of these schemes, early-stage capital remains extremely scarce in the UK. #SEIS #EIS #StartupInvestment #UKGovernment #TaxBreaks #EarlyStageFunding #TechStartups #InvestmentIncentives #CapitalGainsTax #LossRelief #PrivateEquity #FCA #Innovation #Entrepreneurship

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Every Sunday at 8am UK I send an invite only newsletter to investors featuring 5 of the best OFFMARKT investment deals... 𝐖𝐞𝐞𝐤 𝐎𝐧𝐞 𝐒𝐭𝐚𝐭𝐬: 79 Investors Signed Up 88 Total Opens 64% Open Rate 3 out of 5 businesses received investor introductions 1 Term sheet issued Largest Deal £3M, Smallest £100,000. 𝐓𝐡𝐞 𝐓𝐡𝐞𝐬𝐢𝐬: At OFFMARKT, we believe the funding landscape is overcrowded, with the same deals circulating endlessly until someone says yes. Our approach is different—we tap into exclusive, private networks to uncover the best off-market opportunities. These hidden, high-potential deals never make it to the public, and we share them directly with our invite-only investors. 𝐓𝐡𝐞 𝐅𝐞𝐞𝐝𝐛𝐚𝐜𝐤: We have been blown away by the reaction from our first newsletter. The investment market agrees. If you want to start seeing deal flow that isn't part of the funding circuit, check your DMs as you may have received an invite, or visit -> www.offmarkt.ai to apply. Next step, 150 investors 🔥 #Fundraising #AngelInvestor #Founder #VentureCapital

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Check out Debbie Wosskow, OBE post on how the British Business Bank is backing the Invest in Women Taskforce - a critical initiative set to enhance the impact of women investing in women. Despite women founding 40% of new start-ups in the UK, the entrepreneurial landscape for women is still fraught with challenges with just 2p out of every 100p invested going to female-led companies. However, if we were to unlock the potential of female-led enterprises, it could add an incredible £250 billion to the UK economy. Despite this opportunity securing funding remains a significant hurdle for many female entrepreneurs.   Having pitched my business to male and female investors, I know firsthand how challenging it can be. I am thankful to all our investors and very proud that Sibstar is backed by two leading female investors: Deborah Meaden and Sara Davies MBE   Forbes covered the Invest in Women Taskforce in their piece “When Women Mean Business For Women.” You can read the full article here: https://lnkd.in/ezN9AjTQ Please show your support by sharing widely.   #Fintech #Investment #WomeninFintech

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What types of support and services do VCs (and their portfolios) usually require? I'm thinking everything from authorised FCA reps (UK) to financial products that VCs may need, through to Cloud providers that offer discounts to the portfolio. #capitalraising #VCfundraising #founders #venturecapital #investors #vc #vcfunding #technology #startup #tech 

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🚨 Funding Alert: It's the last day of October, and 2024 is slipping away faster than you think... You know it, I know it – the funding world moves at LIGHTNING speed ⚡️ Timing is everything, and opportunities vanish in the blink of an eye. If you're aiming to land a funding deal before year's end, we've got your back! 💪 At Magdalena Reith, we're offering a special Q4 deal: Book a pitch deck package before November 15th and get a FREE one-pager 🎁 Your strategic conversation starter that turns "Maybe later" into "Let's talk!" Looking to finish Q4 strong and slingshot your startup into 2025? Here's what you get in our Q4 Power Package: 🎯 Expert guidance  🎁 FREE one-pager  💼 Professional pitch deck  ⏰ Priority completion (optional) Reach out via DM or drop a comment below to learn more and lock in your package before November 15th! #StartupFunding #PitchDecks #Startups

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Founders: How confident are you in your valuation game? Valuing a startup is tough - it’s hard to know if you’re leaving money on the table or pricing yourself out. On 27th November, 12:30 PM at The Ministry in Borough, I’m hosting a free session to break down the stuff that actually matters for founders looking to nail their valuation and keep control. Expect straight talk, no fluff, and real tactics that you can use, like: - What makes investors really buy into your valuation - How to avoid rookie mistakes in equity negotiations - Balancing that “big dream” with realistic numbers that work for funding 🗓 When: 27th Nov, 12:30-1.30 PM 📍 Where: The Ministry, 79-81 Borough Road, London 🔗 Register here: https://lnkd.in/d_8cna7z This session is about more than numbers - it’s about building a valuation strategy that aligns with where you want to take your startup. Join us if you want to get this right - grab your free spot! 🙂

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💼 Top 10 UK Venture Capital Firms by Deal Count - Plus the Power of NEDs 💼 The UK's venture capital firms are leading the charge in backing high-growth companies, but think abut this..... if each deal also added a non-executive director (and they invariably do) to bring experienced governance and strategy into play, let’s look at the numbers: Let's start with the top 10 most active VCs in the UK in 2024, and the potential impact: 1. SFC Capital - 99 deals   2. Access EIS - 65 deals   3. Octopus Ventures - 54 deals   4. BGF Growth Capital - 47 deals   5. Ascension - 34 deals   6. Fuel Ventures 🚀 Ventures - 31 deals   7. Seedcamp - 28 deals   8. LocalGlobe - 26 deals   9. Par Equity - 25 deals   10. Amadeus Capital Partners - 24 deals If each deal added a NED, and each fund paid an average recruitment fee of £25,000 per hire, the total cost across these deals would be: 😳 SFC Capital: £2.475m   😳 Access EIS: £1.625m   😳 Octopus Ventures: £1.35m   😳 BGF Growth Capital: £1.175m   😳 Ascension: £850k   😳 Fuel Ventures: £775k   😳 Seedcamp: £700k   😳 LocalGlobe: £650k   😳 Par Equity: £625k   😳 Amadeus Capital Partners: £600k  👉 Total cost: £10.825 million 💸 Ps. Many recruitment fees are in excess of double the "average" fee of £25k. At Virtualnonexecs.com, we work with VCs to flatten the cost of recruitment across their portfolios. The VNXD Operator Network is available on a flat annual subscription - for less than the cost of a single hire. You get access to 22,000 non-executive directors, supported by internal headhunters and there's no "per hire" fee. This means ongoing access to the best talent with no extra costs for every deal. If you are interested in accessing this level of support, let’s discuss. You can book a demo with me here: https://lnkd.in/d3na7CEC or simply drop me a DM. 👉 #VentureCapital #Startups #NEDs #Leadership #BusinessGrowth #Investment #UKTech

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Episode 335 of Deal Lite Weekly Investment news just hit your inbox If it has not, subscribe at https://lnkd.in/efmz5xBP A good week for the UK. A total of £521 million was raised by 30 UK technology companies during the 7 day period ending 24th November 2024 Among the companies raised investment include: - TalentLynk.ai - MediaTech SaaS Pre-Seed £335k - Heim - HealthTech Seed £2.2 millon - Goodstack - FinTech Series A £22 million - Quanta Dialysis Technologies - MedTech Series E £47.41 million In 2024, UK tech companies have raised a total of £8.7 billion, a fraction of what was raised in 2021. All this data can be access through https://deallite.uk - we have priced subscriptions to be affordable to everyone. #DealLite #UKTechInvestment #TechInvestment #Investment

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⏰There is a Tick Tock pulse in fundraising and sales⏱️ If Tick is fundraising, Tock is sales. ❌ The problem is most founders go Tick Tick Tick > Tock Tock Tock ❗️Now the next Tick will be much harder because your valuation has now priced in all that past revenue (fair) but without a clear line of sight to future revenues that drive venture-scale growth. 🕥This can prolong the fundraising process as investors wait to see your next batch of contracts come in. 💡One solution is to fundraise after signing a contract but before servicing it. In other words, pre-A/B rounds. It’s a short window but this is the Tick Tock pulse that works incredibly well if you get it right. Here’s the narrative: 1️⃣We have $x in signed contracts and will have to service them over the next 12 months 2️⃣We’re raising now so we can focus on pleasing our customers when the time comes. 3️⃣For this peace of mind, we’re willing to take a 20% discount on our next round valuation given the contracts are already signed. 4️⃣Of course, you are welcomed to join after we’ve closed the revenues. We might be raising at 20% discount to the following round by then. 💡As an added benefit, founders get to focus on one thing at a time - fundraising > sales > fundraising > sales (Tick Tock Tick Tock!) ➡️As with most things I share, works for B2B deep tech. I think? 🧐 💸Don’t try this at home (consumer tech).

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🚀 Busy founders looking for funding, I'd love to help you boost your odds! Having worked with investors since 2015 from a merger and due diligence perspective, I've noticed some patterns. 📊 After talking to fellow DD consultants last year and examining repeated patterns across many projects, I recognised there are common areas that founders are penalised for—areas they could address well before negotiations. 💡 The problem is that you're too busy, and many people don't know what good looks like. That's why we're running a 5-day challenge in July. We'll teach you about the common, usually quite simple, problems that will come up during due diligence. 🏢 My view is that a firm worth selling is worth keeping, which involves bringing your firm up to 'investor grade'. 🎯 This challenge is for those seeking Seed and Series A funding. For more information, check out the link below. 📣 And apologies if I get a bit more vocal promoting this over the next few weeks. Details here: https://lnkd.in/erAv8TDF Emjoi'd out. Hutton

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The vital role that the VCT industry plays in supporting UK economic growth and job creation is highlighted in this article from the The Association of Investment Companies (AIC) #vct #vcta #venturecapital #economicgrowth

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Today’s budget announcements reveal a challenging landscape for UK entrepreneurs and SMEs, as Chancellor Rt Hon Rachel Reeves’ first budget underscores a range of new tax measures set to impact business owners across the country. With a community of over 30,000+ SMEs, E2E Enterprise has been a vocal advocate for the needs and growth of small and medium-sized enterprises, yet today’s budget highlights a concerning shift in government support for the business sector.   The proposed increase in Capital Gains Tax (CGT), along with the hike in employers’ National Insurance (NI) contributions to 15% starting April 2025, directly affects larger SMEs, who are the backbone of economic growth and job creation. Additionally, changes to Business Asset Disposal Relief, and the capping of Business Property Relief at £1 million (with a 50% discount on the remainder), could challenge the sustainability of family-owned businesses, further straining SME cash flow and growth prospects.   Moreover, the 20% Inheritance Tax (IHT) now chargeable on most AIM shares, previously a 40% benefit, threatens to reduce market liquidity and limit funding options for SMEs reliant on AIM investments. Combined with the end of Non-Dom Status, VAT charges on private schools, and increased stamp duty, these policies may deter foreign entrepreneurs from considering the UK as a viable location for new ventures.   These changes have sparked significant concern within the E2E Enterprise community, with many members expressing frustration and even reconsidering the UK as their primary base of operations. The sentiment from our network is clear: the government’s stance may lead to a decline in new business formations and a potential exodus of high-growth SMEs to more business-friendly regions.   E2E Enterprise stands committed to advocating for a business environment where entrepreneurship can thrive, calling for policies that recognise and support the essential role of SMEs in driving economic growth, innovation, and employment across the UK. #E2E #AutumnBudget #TheBudget #CGT #SME

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📣 CALL FOR INVESTORS 📣 DEADLINE: 20 NOVEMBER 📣 £1.2bn in private investment unlocked / 150+ curated investor partners📣 The Innovate UK Investor Partnerships programme is open again for investor selection. The programme is specifically seeking funds that align with the mission to channel private capital into innovative UK companies, particularly in regions outside of London. There is a focus on sectors that will shape the future economy: healthy living & agriculture, net zero, digital technologies, and ED&I. The opportunity is open to foreign investors, and there is a particular interest in late-state investors (Series B+). I am especially interested in finding investors who are interested in joining this pool who have an interest in spatial computing, which falls under the digital technologies remit. FOV Ventures has already joined and made a successful investment through the programme. Further details can be found here: https://lnkd.in/gP2TySkc The recording from the investor briefing event can be found here: https://lnkd.in/g8R77zrF If you would like to discuss your suitability for the programme, please reach out. #investors #funding #investment #VC #venturecapital #angelinvestors #investornetworks #angelnetworks #grantfunding #businessgrowth #innovation #researchanddevelopment #seedfunding #preseedfunding #seriesA #seriesB #InnovateUK #spatialcomputing #digitaltechnologies

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Very exciting news for Wales. We have the opportunity to build a brilliant future (the foundations are here!). There is a lot of low hanging fruit that with the will, can turn into prosperity. https://lnkd.in/enifREZ6 #capitalraising #startups #fundraising #founders #venturecapital #investors #vc #vcfunding #technology #startup #tech

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Over the last few months, I've had countless conversations with founders. Many raised huge rounds in 2021, at sky-high valuations. But now? They're running out of capital, facing tough fundraising realities. → Down rounds → Lower valuations → Raising far less than before Some companies smashed their targets and are still seeing traction. But many? They spent like it was always going to be 2021. Now, they're paying the price. The lesson? In good times or bad—sustainable growth matters. P&L’s matter. Are you building for the moment, or for the future? #Startups #Fundraising #SustainableGrowth

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