Cheshire-based seed-stage investment firm SFC Capital has received a further £5m commitment from British Business Investments (BBI), as part of its Regional Angels programme.
Through the programme, BBI wants to reduce “regional imbalances” in UK small business financing.
Its investment follows on from an earlier £10m commitment in 2020. SFC Capital plans to use the £5m capital to back 200 early-stage businesses.
“Angel investors and early-stage funds are an essential part of the startup ecosystem and we believe that this kind of support, along with the preservation of the SEIS and EIS schemes, will allow the UK to retain its leadership as the innovation hub of Europe,” said Joseph Zipfel, chief investment officer, SFC Capital.
This follows BBI’s investment of £5m yesterday into Manchester-based venture capital firm Praetura Ventures.
Founded in 2012, SFC Capital now has over £100m under management and a portfolio of more than 200 companies outside of London. Recent investments include internet of things startup FourJaw.
BBI is a subsidiary of the UK government’s economic development bank, the British Business Bank.
Judith Hartley, CEO, British Business Investments, said: “Our Regional Angels programme is designed to address imbalances in access to early-stage finance in the UK, and to increase the overall amount of capital available to smaller businesses through angel networks.”
SFC Capital was listed in UKTN’S roundup of four Britsh VC funds that are investing in Northern tech startups.