Key Takeaways
- • Deepbridge Capital has opened its UK Innovation Seed Fund to new investments for the 2026/27 tax year, with subscriptions now being accepted.
- • The fund, first launched in October 2024, targets pre-seed and seed funding for start-ups, university spin-outs and emerging-technology businesses.
- • Deepbridge, based in Chester, says nearly 90% of its investments since 2020 have been made outside London and it has backed spin-outs from 17 UK universities.
- • The fund operates under the Seed Enterprise Investment Scheme (SEIS), offering eligible investors 50% income tax relief on qualifying investments.
- • Deepbridge's Andrew Aldridge argues SEIS reliefs may be more attractive this year as VCT income tax relief falls to 20%, while cautioning the investments are high risk.
Summary
Deepbridge Capital, a venture capital investment manager based in Chester, has opened its UK Innovation Seed Fund for new investments in the 2026/27 tax year, according to Prolific North. The fund, first launched in October 2024, aims to widen access to pre-seed and seed funding for entrepreneurs, university spin-outs and start-ups developing emerging technologies. It sources deals through universities, incubators, accelerators and regional innovation hubs.
The fund focuses on what it calls "catalyst technologies," including artificial intelligence, quantum computing, cybersecurity, medical devices, biotechnology, advanced manufacturing and climate technologies. Deepbridge said nearly 90% of its investments since 2020 have been made outside London, and that it has supported spin-outs from 17 universities across the UK.
The UK Innovation Seed Fund operates under the Seed Enterprise Investment Scheme (SEIS), which gives eligible investors access to a portfolio of early-stage businesses alongside potential tax benefits, including 50% income tax relief on qualifying investments. The fund is now accepting subscriptions for deployment in the 2026/27 tax year.
Andrew Aldridge, Partner and Chief Operating Officer at Deepbridge Capital, said that with rising personal tax burdens and income tax relief on VCTs being reduced to 20%, SEIS reliefs could be more appealing for appropriate investors this year. He also stressed that SEIS investments are high risk and suitable only for investors who understand those risks and can hold for the long term.
The fund focuses on what it calls "catalyst technologies," including artificial intelligence, quantum computing, cybersecurity, medical devices, biotechnology, advanced manufacturing and climate technologies. Deepbridge said nearly 90% of its investments since 2020 have been made outside London, and that it has supported spin-outs from 17 universities across the UK.
The UK Innovation Seed Fund operates under the Seed Enterprise Investment Scheme (SEIS), which gives eligible investors access to a portfolio of early-stage businesses alongside potential tax benefits, including 50% income tax relief on qualifying investments. The fund is now accepting subscriptions for deployment in the 2026/27 tax year.
Andrew Aldridge, Partner and Chief Operating Officer at Deepbridge Capital, said that with rising personal tax burdens and income tax relief on VCTs being reduced to 20%, SEIS reliefs could be more appealing for appropriate investors this year. He also stressed that SEIS investments are high risk and suitable only for investors who understand those risks and can hold for the long term.
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