£1B toward training people on AI? Tell us more.

June 16, 2025


Hey there,

Another month, another batch of questions from UK founders, operators and business owners. 

We've pulled together the most useful insights and updates that affect how you run and grow your business, including:

  1. 🙋‍♀️ The legal question we’ve been asked most in May. 

  2. 📰 Noteworthy news (and why it’s relevant to you). 

  3. ✅ One legal reminder to check off your list.

  4. 💸 Funding and award opportunities to grow your business.

  5. 🎉 Events this month that could bring value to you and your business.

1. Our Most Asked Question in May:
How can I make my business more attractive to investors? 😏

Raising capital isn’t just about having a great idea, it’s about convincing someone to bet on your business. So, what are investors really looking for?

Here are 7 things to put in place before hitting “send” on that pitch deck (we’re also hosting a webinar this month on how to become investor-ready — join us!):

1. Build your foundation. Before investors even think about wiring you money, they want to see that you’ve done the groundwork:

  • You’ve identified a clear customer problem that you provide a solution to.

  • You can explain your market position and what makes you defensible.

  • You’ve mapped out realistic financial projections and can speak to them with confidence.


2. Assemble a strong team. Investors invest in people, not just products. So:

  • Highlight relevant experience and skills.

  • Secure founder and team agreements early.

  • Avoid messy or unclear equity splits.


3. Prove demand.

  • Do you have paying customers?

  • A waitlist?

  • Early pilots?

  • Rapid user growth?


4. Get your house in order. Investors want to see the back-office basics:

  • A clean cap table (avoid over-dilution or legacy shareholder issues).

  • IP owned by the company, not a founder, contractor, or third party.

  • A tidy data room with key documents: Articles, robust shareholders’ agreement, key customer contracts, strong team contracts.


5. Be investor-literate.

  • Know your valuation and how you arrived at it. Ensure it’s not too high or too low.

  • Understand investor rights (e.g., liquidation preferences, anti-dilution terms). Get advice on your term sheet if you’re unsure (IMPORTANT).

  • Be clear on what you're asking for and why.


6. Spend wisely. Show that you’re capital efficient with how you currently spend money in your business as well as how you’ll spend their investment. 

7. Think big. If you’re serious about scaling, have a plan for growth (even if it’s rough/a few years away).

8. Optimise for SEIS. Want to really de-risk the deal for early-stage investors in the UK? Find out if you’re SEIS-eligible. Here’s why investors love it:

  • Immediate tax relief: Investors can claim back 50% of their investment in income tax. £10,000 invested? £5,000 can come straight back.

  • Tax-free upside: If your business succeeds and they sell their shares after 3 years, there’s no Capital Gains Tax.

  • Loss relief if things go wrong: SEIS helps cushion the blow if the investment doesn’t work out. Investors can offset losses against their income tax.

  • Built-in credibility: If you’ve secured SEIS advance assurance, it shows you’ve done your homework — and passed a level of HMRC scrutiny.

The bottom line:
Investors want to see a strong team, real demand, clean legal structures and smart financial strategy. The less risk they see, and the more potential upside for growth, the more likely they are to invest.

2. Noteworthy News:
The UK delays AI law and launches £1B “TechFirst” initiative. 👾

88% of the UK public think regulators, not tech firms, should decide when an AI tool poses a serious risk. And the government agrees. 

Ministers have changed plans for a fast-tracked AI law focused solely on large language models (LLMs). Instead, they’ll introduce a comprehensive AI Bill in the next parliamentary session.

Here’s what’s coming:

📜 A Full-Scope AI Bill. The government will combine safety, copyright, and pro-innovation measures into one wide-ranging piece of legislation.

✔️ A cross-party working group will help shape it across 2025.
✔️ “Frontier model” thresholds will likely be based on compute power or parameter count.
✔️ New statutory duties will require companies to disclose training data and keep detailed logs of data provenance.


🧠 Copyright & Training Data Rules. The Bill will absorb the upcoming Copyright White Paper — meaning:

✔️ Model builders must honour rights-holders’ opt-outs.
✔️ Disclosure of training sources will be mandatory.
✔️ Civil penalties will back enforcement.


🖥 Public Compute & Skills Expansion. A £1B “TechFirst” initiative will:

✔️ Expand public-sector compute 20x.
✔️ Launch SME cloud-credit schemes.
✔️ Train 7.5 million people in AI and digital skills.

Why should this matter to you? 

For UK AI start-ups, the 18–24 month window before the Bill becomes law is a chance to get ahead of the curve:

🧼 Clean data = better deals. If you’re using copyrighted material, rethink your training pipeline. Cleaner, licensed datasets may cost more upfront, but they reduce the risk of legal action and unlock larger enterprise sales.

👨‍⚖️ Governance will be a hygiene factor. Expect investors (and regulators) to start asking for model cards, risk registers, and data documentation. Start building them now while it’s still a differentiator, not a requirement.

💷 Compute is getting cheaper. Public compute access and cloud credits will help early-stage ventures reduce R&D costs, especially for training or fine-tuning models.

⛑️ Safety certification is coming. Companies training large models may need external audits via a new UK AI Safety Institute (AISI). But if you’re working with open-source models or smaller-scale tools, you’ll likely avoid mandatory evaluation.

3. Legal Reminder Of The Month:
If you’re raising with SEIS/EIS, make sure to follow the rules. ✅

SEIS/EIS tax relief is one of the most powerful fundraising tools for UK start-ups. But it’s also one of the most revocable if you don’t get it right.

Here’s what you need to check:

1. Confirm you’re actually eligible. Your company must be:
✔️ Under 3 years old
✔️ UK-based
✔️ Carrying on a qualifying trade
✔️ Under £350k in gross assets
✔️ Fewer than 25 employees

2. Secure Advance Assurance.
Investors love a de-risked deal, so apply to HMRC before your round with a solid business plan, forecasts and proof of investor interest.

3. Issue shares correctly.
Only issue new, ordinary shares, fully paid in cash, with no preferential rights. 

4. File your SEIS1.
After 4 months of trading (or spending 70% of funds on qualifying activities), submit your SEIS1 form to HMRC.

5. Send SEIS3 certificates.
Once approved, send these to your investors — this is what they use to claim their tax relief. They will thank you for it.

6. Stay compliant for 3 years. This means:
✔️ Stick to qualifying business activities.
✔️ Don’t make structural changes that breach the rules (like getting acquired)
✔️ Keep an eye on investor eligibility

7. Avoid the common slip-ups.
Missed deadlines, issuing the wrong share class, or using funds incorrectly (such as with debt) can cause HMRC to revoke investor relief — and no one wants that phone call.

8. Get help if you need it.
FounderCatalyst (our trusted partner) offers streamlined support for SEIS applications, share issues and compliance. And we’re hosting a webinar this month with them — join us!

4. Funding & Award Opportunities 💸

💰 Innovate UK Innovation Loans, Round 21: Innovate UK is offering up to £25 million in loans to micro, small and medium sized enterprises (SMEs). Innovate UK innovation loans are for highly innovative late-stage research and development (R&D) projects with the best potential for the future. Competition closes July 2nd.

5. Upcoming Entrepreneurial Events 🤓

June 21st: Founderfest 2025 – With over 500 attendees and 50+ inspiring speakers, Founderfest is a powerhouse of innovation and collaboration.

June 24th: How to Get Investment Ready with SuLe x Founder Catalyst – ​Getting investment-ready takes more than a great pitch. It takes a solid foundation that gives investors confidence. ​In this practical session, you’ll hear from two experts who’ve helped hundreds of startups raise funding the right way. What we’ll cover:

​✅ Key steps to take before you even approach investors
✅ The legal and structural red flags that can kill a deal
✅ Should you ever pay to connect with investors?
✅ How to get your valuation right—and make it convincing

June 27th: Charity Padel Tournament: Founders, Investors, Changemakers  – We are bringing together leading entrepreneurs, investors, technologists, creatives, innovative businesspeople and other change-makers from the Forbes 30 Under 30 community, Horizon, World Economic Forum Global Shapers, Locals and more for an exclusive Charity Padel Tournament will raise money for the Prince's Trust.

July 2nd: The Future of AI with Yan Zhang, presented by Novabook – ​Alongside moderator Stephen Wilks, the evening will explore the future of AI - where the biggest opportunities lie, how AI startups can position themselves for success and what investors are looking for in this rapidly evolving landscape.

And that’s a wrap! May your inbox be light and your funding rounds full. 🙏

– The SuLe Team