EIS Investment News: October 2025 Roundup

October 2025 proved to be a significant month for the Enterprise Investment Scheme (EIS) market, with major government policy announcements, industry awards recognition, and continued fundraising activity across the UK startup ecosystem. Here's a comprehensive overview of the key developments shaping the EIS landscape.

Government Extends EIS and VCT Schemes for Another Decade

In a major boost for UK entrepreneurs and investors, the government announced the extension of both the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme by ten years, now running until 5 April 2035. Both schemes were originally set to expire on 6 April 2025.

The announcement, made via Written Ministerial Statement in the House of Commons, provides long-term certainty for investors and early-stage companies seeking growth capital. The schemes are designed to encourage investment into new or young companies through tax-relief incentives, driving innovation, job creation, and economic growth.

James Murray MP, Exchequer Secretary to the Treasury, stated: "Startups and entrepreneurs are a driving force for greater investment, more jobs, and economic growth in the UK. By extending these schemes for 10 years, we are providing the stability and support they need to help us make every part of Britain better off."

The Numbers Behind the Success

Since the EIS launched in 1994, the schemes have collectively raised over £41 billion. In 2022-23 alone, £2.9 billion was raised across both schemes, with 1,280 companies using EIS for the first time during that period.

Both schemes offer investors:

• Up to 30% upfront income tax relief

• Exemption from capital gains tax on profits from share sales

• Loss relief (for EIS, provided shares are held for at least two years)

The EIS allows individuals to invest up to £1 million annually, or £2 million for knowledge-intensive companies focused on research and development. VCTs enable individuals to invest up to £200,000 per year in new VCT shares, with tax-free dividends.

Michael Moore, BVCA Chief Executive, praised the move: "This means that investors can now focus on what they do best, investing, safe in the knowledge that these schemes now have the long-term security needed to drive investor confidence."

Source: UK Government

2025 EISA Awards Celebrate Excellence Across the Ecosystem

While the prestigious EISA Awards ceremony took place in June 2025 at the House of Lords, the recognition continues to resonate throughout the EIS community in October as winners leverage their accolades for fundraising and business development.

Key Award Winners Include:

Best EIS Investment Manager (sponsored by Apex)

• Winner: Par Equity

• Highly Commended: Molten Ventures

• One to Watch: Haatch

Best SEIS Investment Manager (sponsored by Exact Libris)

• Joint Winners: Haatch and SFC Capital

• Highly Commended: Deepbridge Capital

Best New Fund Manager (sponsored by Price Forbes)

• Winner: Araya Ventures

• Highly Commended: Oxford Innovation Finance

EISA Impact Award (sponsored by Shoosmiths)

• Winner: Committed Capital

• Highly Commended: o2h Ventures

Best EIS Investee Company (sponsored by RW Blears)

• Winner: Naturbeads

• Highly Commended: Honest Mobile

• One to Watch: Watercycles Technology

Best SEIS Investee Company (sponsored by SFC Capital)

• Winner: Peripear

• Highly Commended: VoltShare

• Ones to Watch: Atlas Endoscopy and LEVRA

Entrepreneur of the Year (sponsored by Kin Group)

• Winner: Husayn Kassai

• Highly Commended: Katrien Grobler

The awards also recognised excellence in professional services, with Wilson Partners winning Best Accountant, SeedLegals taking Best Legal/Regulatory Adviser, and Philip Hare & Associates winning Best Tax Adviser.

Source: EISA

Sustainable Startup Investment Summit Highlights October Activity

On 1st October 2025, Sustainable Times hosted the Sustainable Startup Investment Summit at Plaisterers' Hall in London, bringing together investors and sustainable startups in an investor-only environment. The event featured curated pitches from sustainable founders, with several EIS-registered companies presenting.

Following the success of their EIS Investment Forum in April (which attracted 300 investor community members), this October summit represented the organisation's biggest event yet, focusing specifically on connecting capital with sustainable innovation.

Daisy Moll, Editorial Manager at Sustainable Times, emphasised: "The shift toward sustainable investment is already underway, with economies investing trillions to address environmental challenges. Investors are seeking climate-aligned opportunities, and startups are responding with innovative, high-impact solutions."

The event provided high-net-worth individuals, sophisticated investors, and family offices with opportunities to engage with sustainable ventures ranging from early-stage to more advanced fundraising stages.

Source: Sustainable Times

AI Startup Investment Continues

EHE Ventures announced it has invested over £1.1 million across seven UK-based AI startups through its (S)EIS AI Growth Fund. The Manchester-based venture firm is backing real-world AI applications in health, finance, and agritech sectors, with expectations to deploy up to £5 million by the end of 2025.

This investment activity demonstrates continued confidence in AI-driven innovation within the EIS framework, particularly in sectors with strong commercial applications.

Market Outlook

October 2025 has reinforced the EIS market's critical role in the UK startup ecosystem. The ten-year extension provides unprecedented stability, while the diversity of companies raising capital—from sustainable tech to AI and healthtech—demonstrates the breadth of innovation being supported.

With the government's commitment secured until 2035, industry leaders expect increased investor confidence and continued growth in deployment across both EIS and SEIS schemes. The extension also positions the UK competitively against other jurisdictions developing similar tax-advantaged investment schemes.

As we move toward the end of 2025, the EIS market appears well-positioned to support the next generation of high-growth UK companies, with regulatory certainty, strong industry infrastructure, and continued investor appetite driving the ecosystem forward.

Key Takeaways:

• EIS and VCT schemes extended to April 2035, providing 10 years of certainty

• Over £41 billion raised through EIS since 1994

• EISA Awards recognised excellence across fund managers, advisers, and investee companies

• Sustainable and AI-focused investments gaining traction

• Industry confidence high following government commitment

For investors considering EIS opportunities, it's essential to remember that these are high-risk investments in early-stage companies. While tax reliefs are attractive, you should be prepared to lose all money invested and ensure investments align with your risk tolerance and financial goals.