The UK Innovation Seed Fund, managed by multi-award-winning venture capital investment manager Deepbridge Capital, has formally opened for subscriptions to be deployed in the 2026/27 tax year, providing financial advisers and appropriate investors with access to a diversified portfolio of some of the UK’s most promising early-stage technology and life sciences businesses.
At a time when artificial intelligence, medical devices, healthcare innovation, advanced engineering, quantum computing, climate technologies and next-generation digital infrastructure are reshaping industries around the world, the UK Innovation Seed Fund has been established to help investors gain exposure to these transformational opportunities at the earliest stages of their development.
The Fund focuses on what it describes as “Catalyst Technologies,” being innovative technologies capable of accelerating scientific progress, creating entirely new markets, improving productivity and addressing major global challenges.
The UK Innovation Seed Fund is built around an ecosystem-driven investment approach. Working alongside universities, research institutions, incubators, accelerators, angel networks and regional innovation hubs across the UK, the Fund seeks to identify exceptional companies before they become visible to the wider market. The objective is not merely to provide capital, but to help founders access expertise, commercial support, co-investment opportunities and strategic partnerships that can accelerate growth.
Since 2020, Deepbridge has made nearly 90% of its investments outside London and has supported spin-outs from 17 universities across the UK.
Investing in the Technologies That Shape the Future
The UK has a long-standing reputation for scientific discovery and entrepreneurial innovation. The Fund targets businesses operating within sectors that have the potential to deliver both commercial value and meaningful societal impact, including medical devices, MedTech, advanced manufacturing, artificial intelligence, quantum technologies, climate technologies, deep technology and advanced engineering.
These are sectors where breakthrough innovations can fundamentally alter how we diagnose disease, secure digital systems, power economies, manufacture products, explore space and address environmental challenges. Many of the world’s most successful technology businesses began as small, highly ambitious ventures raising seed capital to prove a concept or develop an initial product.
Why Advisers Continue to Look at SEIS
The Seed Enterprise Investment Scheme (SEIS) remains one of the most generous venture capital tax incentive schemes anywhere in the world. Recognising the risks associated with investing in the earliest-stage companies, the UK Government has created a framework that offers substantial tax advantages to eligible investors. These are subject to individual circumstances but can include:
- 50% income tax relief on qualifying investments.
- 50% capital gains tax mitigation.
- Tax-free gains on qualifying disposals.
- Share loss relief on unsuccessful investments.
- Potential inheritance tax benefits through Business Relief.
For many financial advisers, SEIS has become an increasingly important consideration for suitable clients seeking diversification, long-term growth potential and exposure to private markets.
Investments will be made into seed-stage and pre-seed companies, many of which may have limited revenues or be in the early stages of commercial development. As a result, SEIS investments are regarded as high-risk, illiquid investments and investors should be prepared to hold investments for five to ten years and accept that some companies may fail entirely. Capital is at risk and investors could lose some or all of their investment.
“The UK possesses one of the most vibrant innovation ecosystems in the world. Every day we meet founders developing technologies that have the potential to transform industries, improve lives and create significant economic value. With increasing personal tax burdens, and with income tax relief on VCTs being reduced to just 20%, for appropriate investors the generous tax reliefs available under SEIS could be more appealing than ever this year.
“The UK Innovation Seed Fund was created to connect investors with these opportunities through a diversified portfolio focused on catalyst technologies that can drive long-term change and has already deployed capital into some exceptionally exciting businesses and supported inspiring entrepreneurs. Our ecosystem approach is particularly important. We don’t simply write cheques. We work alongside universities, innovation centres, incubators, strategic partners and co-investors across the country to help identify, support and accelerate the next generation of high-growth businesses.
“SEIS investments are high risk and should only be considered by investors who understand those risks and can afford to hold investments for the long term. But for suitable investors, we believe there remains a compelling combination of growth potential, diversification across a portfolio of early-stage companies and tax incentives, alongside the opportunity to play a direct role in supporting innovation and economic growth across the UK.
“With another recent profitable investor exit from our longstanding SEIS portfolio, we are pleased to be able to demonstrate that SEIS investing, whilst a long-term investment, can be rewarding for appropriate investors.”
Andrew Aldridge, Partner and Chief Operating Officer at Deepbridge Capital
Open for Subscriptions
The UK Innovation Seed Fund is now accepting subscriptions for deployment in the 2026/27 tax year.
For advisers and investors who believe tomorrow’s category-defining businesses are being built today, the Fund provides access to an actively managed portfolio of innovative UK companies operating at the forefront of scientific and technological advancement.
