Legal and SEIS/EIS Tax Considerations for a Funding Round 

Raising investment can be an important step in the growth of a business, but a successful funding round involves much more than securing an investor. 

In this Commercial Conversations webinar, Heros Leask of Ignition Law and Philip Hare of Philip Hare & Associates explored the key legal and tax considerations businesses should understand when preparing for investment, from choosing the right funding structure and negotiating terms to understanding SEIS and EIS eligibility. 

The session looked at how founders can prepare their business for investment, protect the things that create value and approach a funding round with a clearer understanding of the process, risks and decisions involved. 

We covered:

• Preparing for a funding round, including getting the company organised, protecting key intellectual property and contracts, considering how to retain key people and identifying potential risks before approaching investors. 

• Choosing the right type of funding and investor, from angel and venture capital investment to family offices, debt, convertible instruments and Advance Subscription Agreements (ASAs). 

• Negotiating the investment, including Heads of Terms, due diligence, valuations, board rights, investor approval rights, share classes and the importance of being clear about your red lines from the outset. 

• The key documents and process involved, from the initial Heads of Terms and data room through to investment agreements, shareholders’ agreements, Articles of Association and completion documents. 

• SEIS and EIS, including the potential tax reliefs available to investors, the conditions companies need to meet and how the structure and timing of a funding round can affect eligibility. 

The session provided practical guidance for founders and growing businesses considering external investment, helping them understand not only how a funding round works, but the decisions that should be made before the process begins. 

About Ignition Law’s Commercial Conversations series

Ignition Law’s Commercial Conversations webinar series combines honest, no-fluff discussions with the power of our extensive network of experts, entrepreneurs and industry leaders. Whether your scaling questions are legal or extend into areas such as strategy, branding or operations, we’ll connect you with the right people to help.

Our network is vast, and our commitment is simple: if we don’t have the answer, we’ll introduce you to someone who does. Designed for decision-makers ready to think bigger and act smarter, this free programme delivers insights, strategies and connections to support every stage of the growth journey.