OnePlanetCapital, a venture capital firm focused on combating climate change, has announced the launch of a Seed Enterprise Investment Scheme (SEIS) fund aimed at supporting early-stage startups in the UK dedicated to accelerating the transition to net zero and fostering a green economy. The inaugural SEIS fund aims to raise approximately £1 million to invest in climate tech businesses over the next year. This new fund will concentrate on pre-seed and seed-stage companies, continuing the investment strategy of OnePlanetCapital’s flagship Enterprise Investment Scheme (EIS) fund but targeting earlier-stage businesses.
The SEIS fund will capitalize on recent expansions in the SEIS tax incentive scheme, which now allows startups to secure up to £250,000 in funding with tax reliefs, compared to the previous limit of £150,000. Additionally, companies up to three years old are now eligible, up from the previous two-year limit. The fund aims to deliver a return of £3 for every £1 invested over a 5 to 7-year period, coupled with 50% SEIS income tax relief. The launch is anchored by the capital of OnePlanetCapital’s co-founders, emphasizing their commitment and confidence in the initiative.
This SEIS fund builds on the success of OnePlanetCapital’s EIS fund, which launched in 2021 and has since grown to £10 million in assets under management with 31 investments made. The SEIS fund launch also follows the recent establishment of the OnePlanetCapital angel syndicate, offering a wide range of investment options for investors to support climate tech startups at varying stages of their lifecycle. Over the past year, OnePlanetCapital has invested in 12 businesses, including GT Green Technologies, a wind propulsion technology startup; Kelpi, a leading bioplastics innovator in the UK; and RAD Propulsion, an electric maritime drivetrain manufacturer.
In recent years, OnePlanetCapital has emerged as a market leader in early-stage EIS climate tech investing, earning accolades such as the Best New EIS Fund at the EISA awards and Team of the Year at the Growth Invest awards. Matthew Jellicoe, Co-Founder and Investment Director, expressed the belief that the SEIS fund market is underserved in the UK. He emphasized that introducing an SEIS climate tech fund will resonate with investors seeking to enter this fast-growing sector. The SEIS fund also allows for investments in earlier-stage businesses that the OnePlanetCapital EIS fund cannot accommodate, capturing value for investors in areas such as battery storage and hydrogen technology.