- One Planet Capital is launching a Seed Enterprise Investment Scheme (SEIS) fund to invest in early-stage startups in the UK focused on climate tech
- The SEIS fund aims to raise £1.0 million to invest in SEIS qualifying climate tech businesses over the next year
- The fund will target a return of £3 for each £1 invested over a 5 to 7-year period with 50% SEIS income tax relief
- One Planet Capital’s SEIS fund complements its existing EIS fund and angel syndicate, expanding investment options in the climate tech sector
- The SEIS fund launch aims to capture value from investing in earlier-stage businesses, aligning with the recent expansion of the SEIS tax incentive scheme.
One Planet Capital Launches SEIS Fund
Introduction to One Planet Capital’s SEIS Fund
One Planet Capital, a prominent venture capital fund with a focus on climate change, has announced the launch of a Seed Enterprise Investment Scheme (SEIS) fund. This fund is designed to support early-stage startups in the UK that are driving the transition to a net-zero economy and sustainable practices. The SEIS fund is set to raise approximately £1.0 million over the next year, specifically targeting SEIS qualifying climate tech businesses at the pre-seed and seed stages. The fund will leverage the recent enhancements to the SEIS tax incentive scheme, allowing startups to secure up to £250,000 in funding with tax reliefs, a significant increase from the previous limit of £150,000.
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Investment Strategy of One Planet Capital’s SEIS Fund
The co-founders of One Planet Capital will inject their own capital into the SEIS fund, aligning their interests with those of the investors. The fund aims to deliver an attractive return of £3 for every £1 invested over a 5 to 7-year period, coupled with a 50% SEIS income tax relief. By focusing on earlier-stage companies, the SEIS fund complements the investment strategy of One Planet Capital’s flagship EIS fund, which has grown to manage £10 million in assets with 31 investments since its launch in 2021. The SEIS fund will offer investors the opportunity to engage in the burgeoning climate tech sector and capitalize on the growth potential of innovative startups.
Successes and Achievements of One Planet Capital
In recent years, One Planet Capital has established itself as a leader in early-stage EIS climate tech investing. The fund has made strategic investments in notable businesses such as GT Green Technologies, Kelpi, and RAD Propulsion, contributing to the development of cutting-edge technologies in wind propulsion, bioplastics, and electric maritime drivetrains. The success of One Planet Capital’s EIS fund was recognized with accolades such as the best new EIS fund at the EISA awards and Team of the Year at the Growth Invest awards. The launch of the SEIS fund represents a natural progression in the fund’s evolution, expanding its reach to support startups at an even earlier stage of development.
Impact of One Planet Capital’s SEIS Fund on the Climate Tech Sector
The introduction of One Planet Capital’s SEIS fund is poised to make a significant impact on the climate tech sector in the UK. By providing crucial funding and support to early-stage climate tech startups, the fund aims to accelerate the development and adoption of sustainable technologies. The expansion of the SEIS tax relief limits and eligibility criteria will enable a broader range of companies to access funding, fostering innovation and growth in the sector. Investors looking to align their portfolios with environmental and social objectives will have the opportunity to participate in a fund that not only offers potential financial returns but also contributes to the transition to a greener economy.
One Planet Capital’s launch of the SEIS fund underscores its commitment to driving positive change through strategic investments in climate tech startups. The fund’s focus on early-stage companies, coupled with the enhanced SEIS tax incentives, positions it as a key player in supporting innovation and sustainability in the UK. As the fund deploys capital into promising ventures, it is poised to catalyze the growth of the climate tech sector and create lasting impact in the fight against climate change.
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