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British Business Investments Extends its Commitment to SFC Capital to £25m to Invest in Regional Startups

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Further £10m commitment comes as the UK’s most active seed-stage investor surpasses 500 portfolio companies

 
12th February 2025 – SFC Capital (“SFC”), the UK’s most active seed-stage investor, has received an additional £10 million commitment from British Business Investments, a commercial subsidiary of the British Business Bank, through its Regional Angels Programme, which is designed to reduce regional imbalances in access to early-stage equity finance across the UK.

SFC expects this new commitment to fund 100 early-stage businesses across the UK, unlocking a total of £100 million in new funding for startup and scaleup businesses across all sectors. This new commitment follows previous commitments totalling £15 million initially made by the Regional Angels Programme in 2020, which SFC fully deployed across more than 150 companies.

The investments made to date by SFC under the Regional Angels Programme are showing promising performance, with early investments made in 2020-22 currently posting a total value to paid-in (TVPI) multiple of 2x. SFC has also achieved several successful exits from the commitment, including Peopleforce, an HR software business which SFC exited to a leading European HR tech investor in a deal that returned 5x the original investment.

This latest commitment comes as SFC passes a key milestone, having invested in more than 500 startups across the UK since 2012 – including notable names such as Onfido, Cognism, and Transcend Packaging. SFC’s most recent investments include 4D Biomaterials, a Nottingham-based biotech company, Neurosight, a Canterbury-based HR software company, and CareLoop, a University of Manchester spinout focused on tackling severe mental illness.

Joseph Zipfel, Chief Investment Officer, SFC Capital: “We are incredibly pleased to receive this extension and grateful to British Business Investments for their continued trust. This was made possible by the strong performance of the companies that we have invested in so far under the programme, a testament to the strength of entrepreneurial talent that we have in the UK. The Regional Angels Programme is a formidable case study of how the private and public sector can collaborate to boost the startup ecosystem nationally while providing a positive return to taxpayers.”

Adam Kelly, Managing Director, 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. Following our earlier commitments in 2020, this further commitment of £10m will allow SFC Capital to build on its track record of supporting high growth-potential businesses across the UK.”

 

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SFC Capital Ltd (SFC) is an appointed representative of SFC Capital Partners Ltd which is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom (FRN 736284). This website is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell any securities.

Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution. Investment in SEIS/EIS eligible companies should be considered as part of a diversified portfolio. The availability of tax relief depends on individual circumstances and may change in the future. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. The investment products cited herein may place capital at risk and therefore investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up. Investors may not get back the full amount invested. Companies’ pitches for investment are not offers to the public and investments can only be made by members of SFC Capital. SFC Capital takes no responsibility for this information or for any recommendations or opinions made by the companies. Neither SFC Capital nor any of its employees provide any financial or tax advice in relation to the investments and investors are recommended to seek independent financial and tax advice before committing. This website is not directed at or intended for publication or distribution to any person (natural or legal) in any jurisdiction where doing so would result in contravention of any applicable laws or regulations. No warranties or representations of any kind are expressed or implied herein. This material is confidential and is the property of SFC Capital.

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