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For many investors, backing startups that go on to perform is as important as the construction of a meaningful legacy. Not just investing in the best companies, but in the companies that align with the investors's values.
In today's market, the obvious choice for investors who are eager to make an impact is to invest in climatetech. It makes sense on both axes: innovation in the name of preserving life on Earth for future generations, and encouraging growth. Contemporary analysis from global consultancies like PwC and McKinsey suggests it represents a fundamental, multi-trillion-pound realignment of the global economy, and a centrepoint for a convergence of sectors around a central objective.
According to McKinsey, the total market size for decarbonising operations and products will be $9-12 trillion by 2030. PwC’s research describes how contemporary industries are reorganising around essential human needs, spurred on by major disruptors like AI and climate change. For the experienced investor, this is not a trend to be chased, but a structural shift to be understood.
Investing in this transition, particularly at the early stages, can seem antithetical to a philosophy of capital preservation. Startups are inherently high-risk. But what if a structure existed to mitigate this risk, not through financial engineering, but through deep, hands-on expertise? And what if this structure was wrapped in one of the UK's most powerful tools for estate planning?
This is the proposition offered by venture builders like Carbon13, whose SEIS fund is designed for precisely this confluence of impact, legacy, and intelligent financial stewardship.
Carbon13 operates not just as a traditional fund, but as a venture builder. Instead of merely picking from a field of startups, Carbon13 carefully selects the best and most capable founders to build the companies it invests in.
Curated talent: For each cohort, Carbon13 sifts through hundreds of applications from scientists, engineers, and experienced commercial operators. It selects the top 80-100 individuals. The average age of their cohort participants is 37, a quarter hold PhDs and 63% of their teams are mixed gender.
Deliberate team formation: Over an intensive programme, these individuals are guided to form co-founding teams, pairing deep technical expertise with proven commercial acumen.
Investment in people, first: The fund invests in the people before the idea is even fully formed. This aligns with the C-suite understanding that execution is everything. As analysis from partners at True Ventures, an investor in Carbon13, notes, this "people-first" approach is central to their thesis.
The fund then invests in a diversified portfolio of the strongest companies to emerge from this process. This "portfolio" approach is a fundamental tenet of risk mitigation, spreading capital across 8-10 ventures rather than a single bet.
The goal for each company is not just profit, but a tangible impact: when assessing companies Carbon13 are considering whether each one has the potential to mitigate up to 10 million tonnes of CO2e emissions per year. Research indicates this model is working; portfolio companies from this ecosystem have an 80% follow-on funding rate, demonstrating a level of quality and resilience that the market validates.
Expert analysis from wealth managers and tax advisers is increasingly focused on SEIS as a key tool for high-net-worth individuals' estate planning, particularly in light of changing pension regulations.
For the investor focused on capital preservation and IHT efficiency, the benefits are key. Do be aware that tax reliefs described below may be subject to status and can change.
50% income tax relief: An investment of £100,000 provides an immediate £50,000 reduction in that year's income tax bill. This instantly halves the net capital at risk.
100% inheritance tax (IHT) relief: This is the legacy component. Provided the investment is held for just two years, it becomes 100% exempt from inheritance tax. This is one of the fastest and most efficient ways to move assets outside of an estate for succession planning.
Tax-free capital gains: Any and all profits from the sale of the shares after three years are 100% exempt from Capital Gains Tax.
Loss relief: In the event an underlying company in the portfolio fails, the net loss (after income tax relief is accounted for) can be offset against the investor's income tax at their marginal rate.
When you combine these reliefs, the proposition changes entirely. It becomes a highly efficient, tax-advantaged tool for estate planning that also carries the upside of venture capital.
This brings us to the final, and perhaps most important, consideration: values. An investor in this position is likely already a significant philanthropist, accustomed to writing cheques to support causes.
This model offers a different, and arguably more catalytic, form of impact.
Recent analysis from Mercer confirms that large asset owners, those with long-term horizons, are the primary drivers of sustainable investment. They understand that the transition to a low-carbon economy is not a burden, but the single greatest economic opportunity of the coming generation.
Investing in a fund like Carbon13 is an evolution from patronage to participation. It is the deployment of capital, not as a donation, but as a seed. This is an investment in the "bottom-up innovation" that market experts at platforms like ProMarket argue is the true engine of decarbonisation. It supports the next generation of entrepreneurs building the very solutions the world needs.
This is the ultimate alignment. It is a deliberate, strategic decision that:
Preserves capital through powerful tax reliefs, subject to status.
Manages estate planning through 100% IHT exemption, subject to status.
Builds legacy by funding global scale climate solutions.
Mitigates challenges through an expert-led, portfolio-based venture-building model.
For the investor who has seen it all, this is something new: a way to make your capital do more, aligning your portfolio with your principles and your estate plan with your values.
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