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The Inside Track: Why Long-Term Investors See What Others Don’t

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In early-stage investing, insight and access are everything. 

By the time a startup’s success is clear, the best value rounds are gone. Most investors end up chasing deals that are either oversubscribed or overpriced. 

At SFC Capital, we take an earlier and therefore longer view. Through our SEIS and EIS funds, we back founders from day one and keep backing the best as they grow. That early backing gives us our inside track: the access and insight that come only from being involved since the very start. 

Years of close engagement with founders provide deep insight into who delivers, who adapts, and who falls short.  

Getting the full story 

From the outside, investors see pitch decks, numbers, and promises. But that's not even half of the story. 

Inside the boardroom and in one-to-one discussions with founders, the real dynamics become visible. Behaviour under pressure reveals far more than a pitch ever can: how leaders respond when plans falter, when cash runway tightens, or when markets shift. It shows how they manage teams, resolve conflict, and make decisions with imperfect information. 

Patterns emerge over time. Founders who communicate transparently, attract and retain strong talent, and adapt quickly to change tend to outperform. These qualitative signals rarely appear in investor materials, yet they often determine the eventual outcome. 

One of our early portfolio companies was already expanding rapidly overseas when preparing its Series A. Having supported the founders from the very first investment, the opportunity to participate in the round arose naturally, alongside leading institutional investors. 

The follow-on EIS fund combines years of first-hand experience and established trust with portfolio founders. Rather than relying on speculation, the fund focuses on backing proven winners, building on operational insight and evidence of what drives growth. 

Why Access Matters 

In follow-on funding rounds, access is everything. In early-stage deals, the best rounds fill up fast and it helps to already have your name on the guest list. We’re close to our portfolio companies, and we often know when a major round is coming before the market does. 

The early years of a company are incredibly formative. When founders need advice, new hires, or another round, they turn to investors who’ve been with them from the beginning. 

That’s why SFC Capital often gets access to follow-on rounds that outsiders miss. That inside awareness and priority access means our funds can take part in rounds that could be closed or limited from other investors. 

SFC’s inside track creates two clear entry points for SFC’s EIS follow-on fund. We first build relationships and insight via SEIS then deploy EIS capital either: 

  1. in the first round after SEIS, once traction and market validation are evident allowing us to double down on rising stars ahead of broader revaluations; or 
  2. at the growth stage, backing companies with defensible IP, brand recognition, regulatory approvals, and repeatable sales where our early involvement often secures priority or exclusive allocations. 

Investors in the SFC EIS fund benefit from access to some of the most competitive opportunities in the UK early-stage market that others wouldn’t get. 

Capital at risk. 
Past performance is not indicative of future performance.
 

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DISCLAIMER:

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, high net worth investor or certified sophisticated investors only for the purposes of the FCA's Conduct of Business Sourcebook.; 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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