From Start-Up Nation to Scale-Up Superpower: The Case for a Scale Up Investment Scheme

The UK is one of the best places in the world to start a company. But, one of the hardest to scale one. 

Over the past decade, schemes like the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) have powered a wave of innovation and entrepreneurship. They’ve helped thousands of founders get off the ground and fuelled billions in early-stage investment. Venture Capital Trusts have also channelled more than £11 billion into young businesses. 

But when it comes time to scale, too many hit a wall - finding the capital they need to grow. 

A brilliant AI company born in Cambridge might raise £2 million under SEIS or EIS. But when it needs £20 million to enter the US market, it finds that funding only exists in San Francisco or Singapore.

This creates a natural pressure to relocate jobs or IP, and as a result, too many UK-born innovations scale elsewhere.

Introducing SUIS: A New Engine for Growth

At Boardwave, we believe that can change. 

In our formal submission to the Treasury ahead of this year’s Autumn Budget, we are calling for a new Scale-Up Investment Scheme (SUIS). The SUIS is a natural evolution of EIS and SEIS. This proposal builds on ideas in the Boardwave-supported Future Governance Forum paper, A mountain to scale, which can be found here as well as extensive consultation with members and partners of our 2,400 strong community. 

Our proposal would:

• Extend EIS eligibility to firms trading for up to 15 years - recognising that in capital-intensive sectors like software and AI, growth takes longer.

• Increase the investment caps to £10 million annually and £30 million lifetime, reflecting the scale of funding required to reach global markets.

  
  

SEIS and EIS were game-changers for Britain’s start-up scene, however their funding limits were set in 2015. Inflation has eroded their value over time, and they no longer meet the needs of today’s businesses. SUIS provides the opportunity to update these schemes for the next generation of scale-ups by giving founders the breathing room and domestic capital they need to grow faster, hire more people, and stay headquartered here.

The Benefits of SUIS

We believe SUIS would be a powerful catalyst for long-term growth.

It would help close the UK’s £15 billion annual funding gap for scale-ups, reduce our reliance on overseas venture capital, and ensure that more of Britain’s innovation value stays in the UK economy.

It would also give a crucial boost to deep tech, AI, clean tech and biotech. These are industries that need patient, large-scale investment to reach commercial success. By extending tried-and-tested tax relief models into later funding rounds, SUIS would give investors greater confidence to back British growth stories for the long haul.

Perhaps most importantly, it would help keep ownership and talent in the UK. Too many founders sell early or move abroad because the funding they need simply isn’t available here. SUIS would make it easier for those businesses to stay, scale and even go public on home soil.

And because it would apply nationwide, SUIS would also promote regional and inclusive growth - helping tech clusters outside London and founders from diverse backgrounds access the capital they deserve.

Why Scale-Ups Matter

Scale-ups represent just 1% of Britain’s SMEs, but they generate over half of SME output and employ three million people . Backing scale-ups isn’t just good economics; it’s how we turn British talent into global influence. 

Yet the data shows we’re falling behind. It can take UK firms twice as long as their US counterparts to scale-up from £10m to £100m. Pension funds and asset managers, who could be natural partners in this space, are still largely absent from the scale-up market, although the Mansion House Compact reforms will in due course address this. Without urgent change, the UK risks being a nation that creates innovation, but fails to grow it.

A Growing Coalition for Change

We are not alone in making this call - a growing coalition is calling for change. From software leaders in our own Boardwave network to investors, policy experts and industry bodies like the BVCA, the ScaleUp Institute and the Startup Coalition. The message is clear: Britain’s innovation economy is ready for its next evolution.

When experienced founders, investors and institutions are united in their message, the Government should listen.

The UK’s tech sector is one of our greatest success stories. It’s home to world-leading software firms, cutting-edge AI research, and a vibrant ecosystem of innovation. But without a stronger growth engine, that success can’t be sustained. We have the ideas, the talent and the ambition. With the right capital model, we can turn that into long-term economic strength.

We’ve built the foundation. Now it’s time to build the bridge.

Boardwave is calling on the government, investors and the wider business community to work together to make Britain the best place in the world not just to start, but to scale a company.