FAQ
You will find FREQuently asked questions here
There’s no strict minimum investment requirement for StartupPal - whether you’re contributing £100 or £100,000+, we welcome your support. We’ve structured our pre-seed round through a SeedFAST agreement (similar to ASA), making it flexible and accessible for both UK and international investors.
When you invest in StartupPal, you are purchasing equity in the company through one of three options:
a SeedFAST agreement, SEIS/EIS (for UK-based tax-efficient investing), or a direct share purchase without any scheme. Most early-stage investors choose SeedFAST, a UK instrument similar to an Advance Subscription Agreement (ASA), where your investment converts into equity in a future funding round, typically with preferential terms like a discount or valuation cap, essentially locking in today’s terms.
For UK taxpayers, we are SEIS/EIS approved: you may receive up to 50% tax relief on the first £250,000 under SEIS, 30% under EIS thereafter, exemption from Capital Gains Tax on growth, and potential additional loss relief. These benefits are also supported via SeedFAST, and we provide all HMRC-compliant documentation.
Alternatively, if you prefer to invest immediately in exchange for ordinary shares and without using SEIS, EIS, or SeedFAST, we offer a direct share purchase route available to both UK and international investors through a standard share subscription agreement at our current valuation.
In the UK, investors are classified as either:
- High-net-worth individuals (annual income £100K+ or £250K+ in net assets), or
- Sophisticated investors (have invested in other startups, are members of angel networks, etc.)
You’ll self-certify your status before investing. If you’re outside the UK, your country’s regulations may differ.
SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are UK government-backed initiatives designed to encourage investment in early-stage companies by offering generous tax reliefs to investors.
SEIS - Seed Enterprise Investment Scheme
- Available for the first £250,000 a company raises
- Offers 50% income tax relief on the amount invested
- No Capital Gains Tax on any profits from SEIS shares held for 3+ years
- Loss relief available if the investment doesn’t succeed
- Maximum individual investment: £100,000 per tax year
EIS - Enterprise Investment Scheme
- Available for larger follow-on investments beyond SEIS
- Offers 30% income tax relief
- Capital Gains Tax exemption after 3 years
- Loss relief available
- Maximum individual investment: £1 million per tax year (or £2 million if investing in knowledge-intensive companies)
Why it matters?
These schemes make investing in startups like StartupPal more attractive by significantly reducing investor risk and offering strong tax benefits to eligible UK taxpayers.
SeedFAST (Seed Funding Advance Subscription Agreement) is a simple legal agreement used in the UK to raise funds for early-stage startups before a priced equity round.
It allows investors to invest now in exchange for future shares—typically issued automatically when the startup raises its next qualifying funding round or after a longstop date.
Key features of SeedFAST:
- No valuation negotiation needed up front
- Investment converts into equity in a future funding round
- Often used to qualify for SEIS/EIS tax relief
- Investors may receive a discount or other agreed terms when shares are issued
- Efficient, low-cost, and flexible for both startups and investors
Why we use it at StartupPal?
We use SeedFAST to offer investors a quick and flexible route to invest while we complete our pre-seed round. It allows us to issue your shares in a future round - usually once a larger equity raise takes place - on agreed terms, and often with tax advantages through SEIS or EIS (for eligible UK investors).
StartupPal welcomes investments from both UK and international investors, subject to local regulations and self-certification.
You can invest if you are:
- A UK-based investor qualifying under SEIS or EIS, such as:
- A High Net Worth Individual
- A Self-Certified Sophisticated Investor
- An experienced angel investor or member of a business angel network
- An international investor (non-UK), investing via direct share purchase or our SeedFAST agreement (note: SEIS/EIS tax benefits do not apply to non-UK investors)
- An institutional investor, family office, VC, or accelerator interested in pre-seed opportunities
- A private individual who meets their country’s criteria for early-stage investing (e.g. an accredited investor in the U.S.)
We currently have no minimum investment requirement, making StartupPal accessible to a wide range of early supporters.