By Bill Anderson, Senior Valuation Advisor & RICS Associate, Assetica — 2026-04-24
How UK startups set a pre-money valuation for EIS and SEIS funding rounds, what investors and HMRC expect, and how an independent valuation supports a fair, defensible raise.
Pre-revenue and early-stage businesses are hard to value on earnings alone. Methods such as the scorecard and Berkus approaches, DCF on forecast cash flows, and market comparables from recent UK rounds are combined to produce a defensible pre-money figure.
A higher valuation means less dilution for founders but a higher bar to deliver returns. A lower valuation attracts investors but gives away more equity. An independent valuation helps you find a fair, evidence-based middle ground.
SEIS and EIS investors rely on the scheme's tax advantages and on a credible valuation. An independent report reassures them that the price is fair and grounded in methodology rather than optimism.
How do you value a pre-revenue UK startup?
Using early-stage methods such as scorecard and Berkus, DCF on forecast cash flows, and comparables from recent UK rounds, combined to produce a defensible pre-money valuation.
What pre-money valuation should I raise at?
One that balances acceptable dilution against a return investors can believe in. An independent valuation gives you an evidence-based figure to negotiate from rather than a guess.
Does SEIS or EIS require a formal valuation?
It is not strictly mandatory, but an independent valuation strengthens investor confidence and supports a fair, defensible raise under the schemes.