Sohrab Vazir
Consultant | Founder | Global Citizen
Tag Archives: Funding
SEIS vs EIS: Understanding the UK’s Startup Investment Schemes
The United Kingdom is one of the world’s most supportive environments for startups, especially when it comes to funding early-stage ventures. Two of the most powerful tools available to attract investors are the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS). If you’re a founder seeking funding or an investor looking for tax-efficient opportunities, understanding the difference between SEIS and EIS is crucial. What Is SEIS? The Seed Enterprise Investment Scheme (SEIS) was created by the UK government to encourage investment in very early-stage startups: those still developing their product or entering the market. Key SEIS Criteria for Companies To qualify for SEIS, your company must: Benefits for SEIS Investors Investors receive significant incentives, including: These benefits make SEIS one of the most generous startup investment schemes in Europe. What Is EIS? The Enterprise Investment Scheme (EIS) targets more established startups and growth-stage businesses seeking to scale. Key EIS Criteria for Companies To qualify for EIS, your company must: Benefits for EIS Investors EIS investors enjoy: EIS is particularly attractive for high-net-worth individuals and venture capital firms looking to invest in scale-ups. SEIS vs EIS: Side-by-Side Comparison Feature SEIS EIS Company age Up to 2 years Up to 7 years (10 for KICs) Maximum raise £250,000 £12m (£20m for KICs) Employee limit 25 250 (500 for KICs) Investor tax relief 50% 30% Investor limit £100,000/year £1,000,000/year Stage Pre-seed / seed Growth / scale-up (KIC = Knowledge-Intensive Company) Why SEIS and EIS Matter for Founders For entrepreneurs, SEIS and EIS can make your business significantly more attractive to investors. When investors know their tax exposure is reduced, they are more likely to back riskier, early-stage ideas. By becoming SEIS or EIS-approved: It’s common for startups to start with SEIS for their seed round, then move to EIS as they grow. Why SEIS and EIS Matter for Investors For investors, both schemes are a strategic way to diversify portfolios while benefiting from generous tax reliefs. Combined, they offer a pathway to support innovation while offsetting tax liabilities. How to Apply for SEIS or EIS Approval Companies can apply through HMRC’s advance assurance process, which provides investors confidence that the business qualifies before funds are raised. Founders typically work with advisors or consultants who prepare: Whether you’re a startup founder or an investor, understanding SEIS and EIS is key to navigating the UK’s startup funding ecosystem. SEIS is perfect for seed-stage ventures that need proof-of-concept capital. EIS is ideal for growth-stage businesses ready to scale. Both schemes represent a win-win: startups get access to crucial funding, and investors enjoy substantial tax benefits. About | My name is Sohrab Vazir. I’m a UK-based business consultant and venture capital scout, dedicated to helping founders secure funding and expand globally.
How the Dragons’ Den Investors Misjudged HungryHouse
In the world of entrepreneurship and investing, hindsight is often 20/20. Many startups that were rejected early go on to become massive successes. One of the most famous examples in the UK is HungryHouse, the online takeaway-ordering platform. In 2007, the founders pitched on Dragons’ Den but turned down investment from the Dragons and later raised money elsewhere, eventually growing to be acquired for around £200 million. In this post, I’ll examine exactly where and why the Dragons got it wrong, not in a blame game, but in showing key lessons for investors and founders. We’ll break down the original pitch, the objections, what HungryHouse did post-show, and what this tells us about startup evaluation. The Pitch That Nearly Changed Everything HungryHouse appeared on Dragons’ Den in 2007. Its founders, Shane Lake and Tony Charles, were looking for backing to expand their online takeaway ordering service. At that time, ordering food online was still a novelty, and most people were used to picking up the phone to call their local restaurant. The Dragons, cautious about the risks, offered investment but at a steep price: 50% of the company for just £100,000. The deal never materialized, and the founders walked away. Why the Dragons Misjudged HungryHouse The Dragons’ decision reflected a failure to recognize how quickly consumer behaviour was changing. In the mid-2000s, internet penetration and later smartphone adoption were accelerating. People were ready for the convenience of ordering food with a click, but the panel seemed to underestimate how big that market could become. Their focus was too heavily placed on present revenue and logistical concerns, rather than future scalability. Another key mistake was in valuation. By demanding half of the company for a relatively modest sum, the Dragons undervalued both the business and the entrepreneurs’ ability to grow it. For the founders, giving up that much equity would have killed long-term incentives, so it is no surprise they chose to seek investment elsewhere. The Rise of HungryHouse Instead of folding under rejection, the founders secured funding from angel investors who believed in the vision. With that support, HungryHouse rapidly expanded its network of restaurants and customers. Over the following years, it positioned itself as a serious player in the online takeaway market. The timing worked in their favour. As online food ordering became mainstream, HungryHouse was well-placed to capitalize. In 2013, it was acquired by Delivery Hero. Just a few years later it was sold to Just Eat in a deal valued at around £200 million. What the Dragons saw as a small, risky idea turned out to be one of the biggest UK tech success stories of the decade. Lessons for Investors and Entrepreneurs The HungryHouse story is a reminder to investors that future potential can be more important than present numbers. Startups often look fragile in their early stages, but disruptive ideas rely on anticipating shifts in consumer behaviour. Investors who focus too much on short-term risk may miss the long-term reward. For entrepreneurs, the lesson is equally powerful. Rejection from big-name investors does not define the future of a business. The HungryHouse founders showed that with persistence, alternative funding, and belief in their idea, it is possible to outgrow early setbacks and achieve an extraordinary outcome. HungryHouse remains one of the most memorable missed opportunities from Dragons’ Den. What the Dragons dismissed as a risky, low-value venture became a £200 million acquisition. The story is a reminder to entrepreneurs. Rejection can lead to better opportunities, and to investors that true vision requires looking beyond today’s numbers to tomorrow’s potential. About | I’m Sohrab Vazir, a venture capital scout and business consultant helping founders secure funding and scale their startups. I built my own PropTech company from scratch, expanding it across 30+ UK cities, and now I use that experience to connect ambitious entrepreneurs with VCs, angel investors, and growth opportunities. My mission is simple: to bridge the gap between innovative ideas and the capital needed to make them thrive.
UK Company Share Types: A Complete Guide for Business Owners
When setting up a limited company in the UK, one of the most important decisions is how to structure your share capital. Different company share types in the UK come with different rights, responsibilities, and benefits for shareholders. Choosing the right type of share can impact voting power, dividend distribution, and control of the company. This guide will break down the main types of company shares in the UK, their features, and why businesses use them. 1. Ordinary Shares 2. Preference Shares 3. Non-Voting Shares 4. Redeemable Shares 5. Deferred Shares 6. Multiple Share Classes (“A”, “B”, “C” Shares) Why Do Share Types Matter? The choice of company share types in the UK is crucial for: Therefore, when drafting articles of association, it’s important to clearly define each share type to avoid future disputes. Understanding company share types in the UK is essential for entrepreneurs, investors, and business owners. Whether you choose ordinary shares for simplicity, preference shares for investor security, or a mix of multiple share classes, the structure should align with your business goals. If you’re unsure which share structure best suits your company, seek advice from a corporate lawyer or accountant before issuing shares. About | I’m a UK-based business consultant and venture capital scout. At 22, straight after my postgraduate studies, I founded a Property Technology (PropTech) startup with the support of Newcastle University. Over the following years, I expanded the business to 30+ UK cities, built a team of four, and gained recognition for my entrepreneurial work. Today, I help founders with a range of business services, from structuring and scaling their ventures to connecting with investors and uncovering strategic opportunities for sustainable growth.
What is Corporate Venture Capital (CVC)?
In today’s fast-paced business landscape, large corporations are increasingly investing in startups to fuel innovation and stay ahead of the competition. This strategic investment approach is known as Corporate Venture Capital (CVC). Unlike traditional venture capital (VC), which is primarily focused on financial returns, CVC combines financial objectives with strategic goals to drive business growth and innovation. Understanding Corporate Venture Capital (CVC) Corporate Venture Capital refers to investments made by established corporations in emerging startups, usually in exchange for equity. These investments are typically managed through a dedicated CVC arm or corporate venture fund, separate from the company’s core business operations. CVC investments serve a dual purpose: How does it work? CVC operates similarly to traditional venture capital but with a corporate twist. Here’s how the process works: CVC | Key benefits 1. For Corporations: 2. For Startups: Examples of successful CVC programs Several leading companies have established successful CVC programs: CVC | Challenges & risks While CVC offers numerous benefits, it comes with challenges: Corporate Venture Capital (CVC) is a powerful tool for both corporations and startups, enabling innovation, strategic growth, and financial success. As more corporations establish dedicated venture arms, CVC is set to play an increasingly pivotal role in shaping the future of industries worldwide. Interested in Corporate Venture Capital? If you’re an entrepreneur or corporate leader looking to explore CVC opportunities, get in touch to learn how strategic investments can drive success for your business! About | My name is Sohrab Vazir. I’m a UK-based business consultant and VC Scout. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business under the endorsement of Newcastle University. I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) and British citizenship. I help founders with raising funding and investor relations.
What is Media for Equity Investment? Guidance for Startups and Founders
In the world of start-up financing, Media for Equity investment has emerged as a powerful funding alternative for high-growth companies looking to scale. This model allows start-ups to access valuable advertising and media exposure without the upfront costs associated with traditional marketing. But what exactly is Media for Equity investment, and how does it work? Let’s dive in. Media for Equity | Overview Media for Equity is a funding model where media companies provide advertising space—such as TV, radio, digital, or print—to start-ups in exchange for equity stakes. This approach helps start-ups grow their brand awareness and customer base without needing immediate cash reserves to fund large-scale marketing campaigns. How does it work? Benefits For Startups: For Media Companies: Who has used this investment model? Media for Equity is commonly used by digital-first brands, e-commerce startups, and consumer-facing businesses that benefit from high visibility. Some well-known companies that have leveraged this model include: Media for Equity funds and investors Several specialised funds and media houses actively invest in start-ups through this model, including: Is Media for Equity right for your start-up? This emerging investment model is best suited for start-ups that: Media for Equity investment offers a win-win situation for both startups and media companies. It provides early-stage businesses with much-needed exposure while allowing media companies to invest in high-growth ventures. If you are a start-up considering this model, it’s essential to evaluate your growth stage, media needs, and long-term financial strategy before entering into an agreement. By leveraging this innovative investment approach, start-ups can supercharge their marketing efforts while preserving cash, ultimately setting themselves up for long-term success. About | My name is Sohrab Vazir. I’m a UK-based entrepreneur, business consultant and VC Scout. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business under the endorsement of Newcastle University. I currently help other entrepreneurs and start-ups with a range of business & funding services.
How Venture Capital Funding Works: A Beginner’s Guide
Venture capital (VC) funding plays a pivotal role in the startup ecosystem, providing businesses with the financial backing they need to scale and succeed. Whether you’re an entrepreneur looking to secure VC funding or simply curious about how it works, understanding the basics is crucial. In this blog post, I’ll walk you through how venture capital funding works, from the initial stages of investment to the potential returns for investors. What is Venture Capital? Venture capital is a type of private equity financing provided by investors to early-stage companies that have high growth potential but are also considered high-risk. In exchange for their investment, venture capitalists (VCs) typically take an equity stake in the company. Their goal is to support the business’s growth, with the hope of generating a significant return on investment (ROI) through exits, such as acquisitions or IPOs. Key Players in Venture Capital Funding To understand how venture capital works, it’s important to know the key players involved: Funding Stages Venture capital funding typically occurs in several stages, with each round of investment serving a different purpose in the startup’s journey. 1. Seed Stage At the seed stage, startups are usually in the idea or early development phase. They may have a product prototype or a business plan but lack the funds to bring their product to market or scale operations. Seed funding is often used for market research, product development, and team building. 2. Early Stage (Series A & B) Once a startup has developed its product and has some traction, it may seek early-stage funding to refine its business model, expand its team, and start acquiring customers. Series A funding is typically the first round of institutional investment, while Series B funding helps the company grow even further. 3. Growth Stage (Series C and beyond) At the growth stage, the company is well-established, and its product or service is showing significant promise. Series C funding and beyond are used to expand into new markets, develop additional products, or prepare for an IPO or acquisition. How Does VC Funding Work? 1. The Investment Process The venture capital investment process typically follows these steps: 2. Ownership and Control In exchange for funding, the venture capitalists receive equity in the company. The amount of equity depends on the valuation of the business and the investment amount. In most cases, VCs also negotiate for seats on the board of directors. This allows them to have a say in the company’s strategic decisions. 3. Exit Strategy VCs typically expect to exit their investment within 5 to 10 years. The most common exit strategies include: How Do VCs Make Money? Venture capitalists make money by helping startups grow and eventually achieving a profitable exit. They make a return on their investment through: Venture capital funding is a critical lifeline for startups looking to grow, scale, and reach their full potential. Understanding the stages of VC funding, the key players involved, and the investment process can give entrepreneurs the tools they need to attract investors and secure the funding they need to succeed. For venture capitalists, it’s a way to potentially make a significant return by backing the next big thing in the business world. Whether you’re an entrepreneur seeking funding or an investor looking to understand how VC works, the dynamics of venture capital funding are essential to the innovation and success of tomorrow’s businesses. About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, I started my own Property Technology (PropTech) business. I grew my business to over 30 UK cities, and a team of four, and also obtained my Indefinite Leave to Remain (Settlement) in the UK. I now help other migrant entrepreneurs, such as myself, with their businesses.
Startup funding: a simple guide
Navigating the world of startup funding can be a daunting task for founders. Securing the right type of cash injection at the right time is crucial for your startup. This comprehensive guide will walk you through the various stages of startup funding, the types of funding available, and best practices to attract investors. What is Startup Funding? Startup funding refers to the money that entrepreneurs raise to launch and grow their new business ventures. This funding can come from various sources, each with its own benefits and requirements. The primary goal is to secure enough capital to cover initial costs, sustain operations, and scale the business until it becomes profitable. Stages of Startup Funding 1. Pre-Seed Funding Pre-seed funding is the earliest stage of funding, often coming from the founders themselves, friends, family, or small angel investors. This stage focuses on developing the initial business idea, market research, and creating a minimum viable product (MVP). 2. Seed Funding Seed funding is the first official equity funding stage. It helps startups conduct product development, market research, and business model validation. 3. Series A Funding Series A funding focuses on scaling the product and user base. Startups use this funding to optimize their product offerings, expand the team, and enter new markets. 4. Series B Funding Series B funding is used for scaling operations, including expanding the market reach, hiring additional team members, and improving technology. 5. Series C Funding and Beyond Series C funding and subsequent rounds are aimed at scaling the business rapidly, developing new products, entering international markets, or preparing for an acquisition or IPO. Types of Startup Funding 1. Bootstrapping Bootstrapping involves funding the startup using personal savings or revenue from the business. It allows founders to retain full control and ownership but can limit growth due to limited capital. 2. Angel Investors Angel investors are high-net-worth individuals who invest their personal funds in startups in exchange for equity. They often provide mentorship and valuable industry connections. 3. Venture Capital (VC) Venture capital firms invest in startups with high growth potential in exchange for equity. They typically get involved in later stages (Series A and beyond) and provide significant funding along with strategic guidance. 4. Crowdfunding Crowdfunding involves raising small amounts of money from a large number of people, typically via online platforms like Kickstarter or Indiegogo. It’s an excellent way to validate market interest and gain early customers. 5. Grants and Competitions Grants and competitions offer non-dilutive funding, meaning you don’t have to give up equity. These are often provided by government programs, non-profits, or industry competitions. 6. Bank Loans Bank loans are traditional funding methods where startups borrow money and repay it with interest. This option does not require giving up equity but does require a solid business plan and creditworthiness. Best Practices to Attract Investors 1. Develop a Solid Business Plan Investors need to see a well-thought-out business plan that outlines your vision, market analysis, revenue model, and growth strategy. Ensure your plan highlights the potential return on investment. 2. Build a Strong Team A talented and dedicated team is crucial for success. Investors are more likely to fund a startup with a strong leadership team that has relevant experience and a proven track record. 3. Create a Minimum Viable Product (MVP) Developing an MVP demonstrates your ability to execute your idea and provides a tangible product for investors to evaluate. It also helps validate your business concept in the market. 4. Network and Build Relationships Attend industry events, join startup incubators, and use online platforms like LinkedIn to connect with potential investors. Building relationships can lead to valuable introductions and funding opportunities. 5. Show Traction Demonstrate market demand and your startup’s potential by showing early sales, user growth, or partnerships. Traction proves that there is a viable market for your product or service. Conclusion Understanding how startup funding works is essential for any entrepreneur looking to turn their business idea into a successful company. By familiarizing yourself with the various stages and types of funding, and following best practices to attract investors, you can secure the capital needed to launch and grow your startup. About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business, StudyFlats. I now help other entrepreneurs, such as myself, with their businesses, and mainly with obtaining endorsements from the endorsing bodies.
5 elements of a good business plan
Writing a good business plan can be a challenging task. In essence, business planning is the first major challenge an entrepreneur faces as it is a blueprint of their venture. In this article, I will outline 5 elements that make a good business plan. This is based on my own experience as a tech founder, consultant and writer. Writing a good business plan goes beyond proposing a viable business proposition. It entails clear articulation, milestones, well-written content and a thorough blueprint of how your business will succeed. There are plenty of articles that will refer to the basic and compulsory parts of a business plan such as SWOT analysis and regard them as factors contributing to a good business plan. However, my aim in this article is to provide you with the correct mindset and approach to: With the aforementioned in mind, let’s highlight the 5 key elements of a good business plan. Inclusion of the key standard sections Okay, so let’s briefly highlight an obvious part, which many entrepreneurs surprisingly fall short of. Regardless of the purpose of your business plan and where you are, several key sections must be included in every business plan. These key sections are: Clear & realistic business vision Entrepreneurship and starting a business require vision. And it is fantastic to set high goals. Nevertheless, this is where many entrepreneurs make a mistake. And the mistake is that they “fly too high” and set goals and visions that are essentially unrealistic. Your vision and anticipated goals should be realistic and based on market trends supported by research. Clear business milestones The ideal business plan is not a fancy document to impress your investors or other parties. It is the blueprint of your business as a commercial entity. And what does a blueprint entail? Clear procedural steps with timelines and outcomes. Moreover, this is not just related to one part of the business plan, for example, product development. Each aspect of the business (plan) should be subjected to prior anticipation with clear input/output estimations, whether it is product, marketing, sales or anything else. Objective market research and avoiding the “founder bias” As stated earlier, I will not highlight standard business plan sections. However, this part is crucial and you notice that I have used the word “objective”. You may have a business proposal that does respond to a genuine market need. However, this is where what I call the “founder bias” kicks in. The “founder bias” is when a founder only states market research that supports the notion that there is a need for their product and/or service. This eliminates the “objectivity” aspect. Your plan must be supported by objective market research, and this is why a business consultant like me is useful. By highlighting all the facets of the market, you demonstrate enhanced commercial awareness. Plus, it enables you to anticipate and prepare for unexpected market shifts and how to respond accordingly. Money, money, money (the financials) Regardless of the type of project, the primary goal of a venture is making money. Even if you are starting a non-profit/charity, your finances matter the most. This is one of the most neglected aspects of many business plans. You must anticipate and account for cash inflows and outflows of your business. And I get it: this is perhaps among the most difficult aspects, and hence why it is often neglected. However, without a financial analysis that is subject to scrutiny, you are almost always doomed for failure. About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business, StudyFlats. I grew my business to over 30 UK cities, and a team of four. I now help other migrant entrepreneurs and all founders with their businesses, including their business plans.