The Innovation Conversation

Innovation Conversation: SEIS, EIS, and Startup Valuations with Sam Simpson


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Innovation Conversation: SEIS, EIS, and Startup Valuations with Sam Simpson

In this episode of Innovation Conversation, host Ricardo Pascual sits down with Sam Simpson from Founders Catalystto discuss SEIS and EIS tax relief schemes, the evolving fundraising landscape, and how founders can approach startup valuations realistically. Sam brings practical advice on preparing for funding rounds and navigating the often fragmented UK startup ecosystem.

They dive into:

  • How SEIS and EIS tax schemes work and why they are crucial for both founders and investors.
  • Recent changes to financial promotion rules and how they impact fundraising.
  • Key challenges founders face when raising capital β€” and how to overcome them.
  • The fragmented nature of the UK funding ecosystem versus the US model.
  • How to approach startup valuation at pre-seed and pre-revenue stages.
  • Why factors like team composition, defensibility, and market fit are critical in determining a fair valuation.
  • The dangers of unrealistic valuations and the importance of sanity checks and market research.
  • Aligning founder valuation expectations with what the market will bear, using a simple but powerful car analogy.

Tune in for actionable insights on raising capital, valuing your startup, and preparing for investor conversations.

Brought to you by Startup Summit 2025 β€” Europe’s leading startup and investor summit, happening September 18–19, 2025, in Lisbon.

🎟️ Learn more and secure your spot at www.startupsummit.io

πŸ•’ Chapters 00:00 β€” Introduction to Sam Simpson and Founders Catalyst 01:20 β€” Motivation to Start Founders Catalyst 03:29 β€” Benefits of SEIS and EIS 07:00 β€” SEIS and EIS Explained 09:07 β€” Tax Benefits for Investors 11:56 β€” Changes to Financial Promotion Rules 17:44 β€” Challenges for Founders 21:15 β€” Preparing for a Funding Round 22:33 β€” Finding Investors 26:39 β€” Fragmented Ecosystem and Funding Rounds 29:33 β€” Comparison with US Funding Rounds 36:01 β€” Evaluation of Company 42:31 β€” Factors Affecting Valuation 43:28 β€” Defensibility and Valuation 44:27 β€” Unrealistic Valuations 45:20 β€” Sanity Checks for Valuations 46:37 β€” Founder's Perception of Valuation 47:05 β€” Car Analogy for Valuations 47:49 β€” Closing and Contact Information

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The Innovation ConversationBy Ricardo Pascual