The Enterprise Investment Scheme (EIS) has long been one of the UK's most powerful tools for channelling private capital into innovation. For more than three decades it has supported early-stage companies, encouraged entrepreneurial activity and offered investors a tax efficient route into high growth businesses. Today, however, the EIS market is entering a more mature and discerning phase, and that evolution should be welcomed.
The November 2025 Budget marked an important inflection point. The decision to double the annual EIS investment limit for companies from £5 million to £10 million, and from £10 million to £20 million for Knowledge Intensive Companies, alongside an increase in the lifetime cap from £12 million to £24 million, is a clear statement of intent. The Government is signalling that it wants EIS-backed businesses to scale further, remain private for longer, and build more substantial operations in the UK. For investors and fund managers alike, this creates both opportunity and responsibility.
What the Budget changes really mean for EIS
At Maven Cognition [1], we view these changes as a part of a natural progression for a scheme that is evolving to meet market needs. The expanded limits are not an invitation to fund risk indiscriminately. Instead, they reinforce the need for selectivity, structure and institutional discipline. The EIS market has already been moving in this direction.
Recent HMRC data shows a contraction in overall fundraising and a decline in the number of companies raising capital, but this should not be mistaken for weakness. It reflects, in part, a recalibration towards quality over quantity, and towards businesses with credible routes to scale rather than purely speculative ambition.
A changing investor mindset
Investor priorities have shifted accordingly as well, with geopolitical instability at its highest in decades and the UK tax burden predicted to reach 37.7% of GDP in 2027 (surpassing the previous post-war peak of 37.2% in 1948/49). In this environment, investors are increasingly focused on resilience, capital preservation, and the credibility of underlying investment strategies. Governance, transparency and realistic valuations are now non-negotiable. Rising interest rates and tighter financial conditions have sharpened the focus on resilience, while regulatory developments such as Consumer Duty have placed greater emphasis on clarity and suitability.
Against this backdrop, EIS portfolios built around loose themes or hype-driven narratives look increasingly out of step. What investors want, above all, is a return on their investment-delivered through well-constructed portfolios backed by proven technology, validated markets, and management teams capable of execution.
We are a specialist EIS fund manager, bringing Maven's institutional pedigree and private equity discipline to early-stage investing. Our focus on innovation is matched by rigorous selection, active portfolio management, and a commitment to building resilient portfolios, so investors can have confidence that their capital is working towards meaningful, long-term returns.
Maven Cognition offers investors access to high-quality EIS opportunities through the Cognition EIS Fund, which provides year-round access to a diversified, actively managed portfolio. This structure reflects our belief that EIS should be approached as a long-term, portfolio-based strategy, delivering diversification and professional oversight to help mitigate risk while targeting attractive growth potential.
Why discipline matters more as capital limits rise
What sets Maven Cognition apart is not just what we invest in, but how we invest. Our approach mirrors the institutional standards that underpin Maven's wider private equity and VCT activity. We apply rigorous due diligence, active portfolio monitoring, and clear strategic planning from the outset. We focus on companies where the technology is proven, the market has been confirmed, and the business is genuinely ready to scale. This disciplined mindset is increasingly important as higher investment limits allow more capital to be concentrated behind fewer, larger opportunities.
Our track record reflects this philosophy. We have backed businesses demonstrating strong commercial traction and defensible market positions across a range of sectors. They are businesses building real value, with clear growth pathways and the potential to benefit meaningfully from the expanded EIS funding envelope.
Sensoteq, for example, has developed an industrial IoT platform addressing critical predictive maintenance challenges, combining robust sensor technology with scalable distribution.
Blackdot Solutions, based in Cambridge, offers Videris - a sophisticated OSINT platform that leverages explainable AI and intelligent automation to collect, analyse, and visualise open-source data, helping enterprise investigation teams detect fraud, strengthen due diligence processes, and combat economic crime.
PervasID has created patented RFID reader technology that solves complex asset tracking problems and is already gaining significant commercial adoption.
Importance of regional reach
Another defining advantage is our regional reach. Despite policy efforts, EIS capital remains heavily concentrated in London and the South East. Maven's national office network and one of the largest investment and portfolio management teams in the UK give us access to high quality opportunities across regions that are often underserved by traditional EIS capital. This breadth strengthens our deal flow and supports a more balanced and resilient portfolio construction. In a market that is becoming more selective, origination capability and local presence matter more than ever.
Looking ahead to a more resilient EIS market
Looking ahead, the EIS landscape should be approached with realism and ambition in equal measure. The expanded limits introduced in the Budget create the potential for EIS backed companies to become more substantial, durable businesses. Achieving that outcome will require fund managers to resist the temptation to simply deploy more capital faster. Instead, success will come from backing fewer, better prepared companies, supporting them actively, and aligning investor expectations with the realities of UK growth markets.
EIS is not losing relevance. It is maturing. The current environment represents an opportunity to raise standards, improve outcomes, and ensure that the scheme continues to serve both investors and innovators effectively. At Maven Cognition, we believe disciplined growth, institutional governance and a portfolio-led approach are the foundations of that next chapter, and the November Budget changes only reinforce the importance of getting that approach right.