London-based VC SFC Capital invested £25M in 120 companies over the past year; reaches £50M AUM

SFC Capital Image credits: SFC Capital

SFC (formerly Startup Funding Club), an early-stage investment firm providing capital and support to British startups, has recently invested £25 million in 120 companies (April 2020 – April 2021).

Notably, the London-based company raised its largest SEIS fund to date in Q1 of 2021, with £5 million deployed in 40 companies in just two months. 

The funds have been raised from private investors (SEIS and EIS funds), family offices, the SFC Angel Network, and a £10 million commitment from the British Business Bank in April 2020 as part of its Regional Angels Programme.

By combining its Angel Network and Seed Funds, SFC has created a unique model that allows investors to get exposure to SEIS and EIS eligible businesses, either directly or through a diversified portfolio curated and managed by our expert team. 

Last year investments

The company’s investment focus for the past year has been on innovation aimed at addressing the lasting economic and social changes triggered by the COVID-19 pandemic – in particular AI, healthtech, fintech, AR/VR, IoT, and B2B SaaS. 

Two-thirds outside London

In addition, and continuing its long-standing commitment to investing outside the M25 – investments include Transcend Packaging (Caerphilly), Condense Reality (Bristol), Novai (Reading), and 4D Biomaterials (Nottingham) – SFC Capital made over two-thirds of its investments outside of London and 40% of new investee companies were women-led/had female founders.

Stephen Page, founder, and CEO of SFC Capital said: “We have seen a great number of promising early-stage companies that have been looking for investment throughout the pandemic – especially those at the SEIS level that were not eligible for support via the Government’s Future Fund. We’re excited to have been able to back a really significant number of companies during such a difficult year, we are delighted that we are going to back more startups with game-changing potential in the ‘new normal’ – and quickly. 

“While our focus is on areas that will be to the fore in the post-pandemic economy, our perspective is long-term – we’re looking for companies with the potential to become world-leaders in their field over the next five to seven years. It’s great that our investors see the potential in the early-stage game-changing businesses we are backing, as well as recognising the benefits of our market-leading SEIS funds.”

Angelika Burawska, Chief Operating Officer, said: “For years SFC Capital has believed in the quality of innovation going on all around the UK, not just in London as the epicenter of the investment ecosystem – and we have the receipts in the shape of a geographically diverse portfolio spanning the length and breadth of the country. The past year has reiterated that innovative work can be done from more or less anywhere, which will hopefully support the long-term growth of regional ‘hotspots’ in all sectors.” 

“Beyond this, we recognise the woeful statistics for investment in female-founded startups, which is why we set a target of 50% of investee companies through 2020/21 being female-founded. To date, SFC Capital has invested in some brilliant companies, including Mevitae, Hunter & Gather, and Jack & Bry. We want to be seen to take action, and we’re well on our way, achieving 40% invested in female-founded businesses so far. We are confident that we are at the forefront of much-needed change in the industry, with a strong pipeline for the year to come.”