--- title: Reinventing Early-Stage Investment | SFC Capital description: Since its launch in 2012, the Seed Enterprise Investment Scheme (SEIS) and its older brother EIS have encouraged many investors to finance early-stage comp image: https://sfccapital.com/hubfs/Imported_Blog_Media/banner_1520349887.webp --- Disclaimer Please note, company introductions through SFC Capital Ltd ('SFC') are only suitable for ‘High Net Worth Individuals’, or ‘Sophisticated Investors’ as defined by the Financial Services & Markets Act 2000 (FSMA) who are familiar with and willing to accept the high risk associated with private investments. Any investor requesting to contact a company through SFC Capital does so at his/her own risk and is solely responsible for conducting any legal, accounting or due diligence review. There has been no investigation to the accuracy of any information or terms contained herein and we strongly suggest that you seek advice from a person authorised under the FSMA who specialises in advising on investments of this kind prior to commencement of any potential transaction. All content provided by SFC Capital is strictly for informational purpose only and does not constitute business, financial, investment, hedging, trading, legal, regulatory, tax or accounting advice or services. SFC Capital 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. SFC Capital does not sell or offer to sell any securities and no information provided by SFC Capital is intended to constitute or to be interpreted as any such offer. SFC Capital simply provides an introductory service where potential partners of all sorts can meet. The SFC Angel Fund is managed by SFC Capital Partners Ltd (‘SFCCP’) which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, firm reference number 736284. Information on the Fund 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 the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. Any decision by an investor to buy shares in a fund must be made solely on the basis of the information and terms contained within the Fund’s offering memorandum. Investment in the Fund is made entirely at the investor’s own risk and professional advice should be sought in case of doubt. SFC Capital Partners Ltd (‘SFC’) is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom, firm reference number 736284. This document 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 the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. The SFC Angel Fund is managed by SFC Capital Partners Ltd (‘SFCCP’) which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, firm reference number 736284. Information on the Fund 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 the securities mentioned herein. The SFC Angel Fund (the ‘SFC Fund’ or the ‘Fund’) is defined as an ‘unregulated collective investment scheme’ (‘UCIS’) and the promotion of a UCIS either within the UK or from the UK is severely restricted by statute. Consequently, this document is only directed at professional clients and eligible counterparties as defined by the FCA and also to persons of a kind to whom the Fund may lawfully be promoted by an authorised person by virtue of Section 238(5) of the Financial Services and Markets Act 2000 and COBS 4.12.4R. Any decision by an investor to buy shares in a fund must be made solely on the basis of the information and terms contained within the Fund’s offering memorandum. Investment in the Fund is made entirely at the investor’s own risk and professional advice should be sought in case of doubt. The SFC Angel Fund is an SEIS/EIS fund which raises money for early-stage businesses by investing in SEIS and EIS eligible ventures with the aim of returning a profit for investors in the fund. Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution. Investment in SEIS/EIS funds 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 product will be achieved or that the strategies and methods described herein will be successful. 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. No warranties or representations of any kind are expressed or implied on this website. I Accept The Terms ## FCA Mandatory Risk Warning & Risk Summary > ## Risk Warning > > **Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong.** ## Risk Summary **Estimated reading time: 2 min** Due to the potential for losses, the Financial Conduct Authority (“FCA”) considers this investment to be high risk.   What are the key risks? 1\. You could lose all the money you invest. Investments made by the SFC Angel Fund SEIS (the “Fund”) will be in shares in early-stage businesses. Investors in these shares often lose 100% of the money they invested, as many early-stage businesses fail. 2\. You are unlikely to be protected if something goes wrong Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here: [https://www.fscs.org.uk/check/investment-protection-checker/](https://sfccapital.com/fca-mandatory-risk-warning-and-risk-summary/%20https://www.fscs.org.uk/check/investment-protection-checker/)    Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here: [https://www.financial-ombudsman.org.uk/consumers](https://www.financial-ombudsman.org.uk/consumers) 3\. You won’t get your money back quickly Even if the businesses the Fund invests your money in are successful, it may take several years to get your money back. The most likely way to get your money back is if the businesses invested in by the Fund are bought by another business or list their shares on an exchange such as the London Stock Exchange. These events are not common. 4\. Don’t put all your eggs in one basket Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.  A good rule of thumb is not to invest more than 10% of your money in high-risk investments.  [https://www.fca.org.uk/investsmart/5-questions-ask-you-invest](https://www.fca.org.uk/investsmart/5-questions-ask-you-invest) 5\. The value of your investment can be reduced The percentage of each investee company that the Fund owns will decrease if the business issues more shares. This could mean that the value of your investment in each investee company reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.  These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment. 6\. S/EIS tax reliefs are not guaranteed Whilst it is the Fund's intention to invest mostly in companies qualifying under SEIS legislation, SFC cannot guarantee that all investments will qualify for S/EIS relief (or IHT relief) or, indeed, if they do initially, that they will continue to do so throughout the life of the investment. The tax advantages of investing through the Fund are therefore not guaranteed.  If you are interested in learning more about how to protect yourself, visit the FCA’s website here: [https://www.fca.org.uk/investsmart](https://www.fca.org.uk/investsmart)  Close Don’t invest unless you’re prepared to lose all the money you invest. This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 minutes to learn more. [![SFC Logo + Title x web](https://sfccapital.com/hs-fs/hubfs/SFC%20Logo%20+%20Title%20x%20web.png?width=2000&name=SFC%20Logo%20+%20Title%20x%20web.png)](https://sfccapital.com) - [Startups](https://sfccapital.com/raise) - Investors - [SEIS Fund](https://sfccapital.com/seis-funds) - [EIS Fund](https://sfccapital.com/eis-funds) - [SEIS Explained](https://sfccapital.com/seis-explained) - [EIS Explained](https://sfccapital.com/eis-explained) - [Angel House](https://sfccapital.com/angel-house) - [Advisors](https://sfccapital.com/advisors) - [Portfolio](https://portal.sfccapital.com/portfolio) - [About Us](https://sfccapital.com/about-us) - [Blog](https://sfccapital.com/blog) - [Login](https://portal.sfccapital.com/login) # Reinventing Early-Stage Investment [Alex Batlle Bosch, Brand Manager](https://sfccapital.com/blog/author/alex-batlle-bosch) Since 2016, Alex has led SFC Capital's digital communications, leveraging her background in social media management and creative work. - - 24 Oct 2017 [Investors](https://sfccapital.com/blog/tag/investors) ##### Share on - - - #### London-based Startup Funding Club has reinvented early-stage investment by developing a unique co-investment model – discover the journey of SFC. Since its launch in 2012, the [Seed Enterprise Investment Scheme (SEIS)](http://www.seis.co.uk) and its older brother EIS have encouraged many investors to finance early-stage companies attracted by the schemes’ generous tax breaks. While investment firms typically rely on managing one single type of investment – angel, fund, or crowdfunding –, the London-based [Startup Funding Club](http://www.startupfundingclub.com) has reinvented early-stage investment by developing a unique co-investment model. The new strategy established by the firm allows High Net Worths to choose between investing in startups via its Angel Network or its funds, or by combining both modalities. With this approach, SFC maximises the investor’s potential returns while also helping startups maximise the potential of their funding rounds. Investors meet startups at the latest SFC Pitching & Networking event. Launched on the same year as SEIS, Startup Funding Club originated as an angel network. Nonetheless, the company quickly developed its unique co-investment model and launched its first SEIS fund in 2014. Now in its fifth year, SFC co-manages six investment funds and fully manages a seventh. The organisation prides itself in being more than a simple “broker” and sets itself apart from other investment firms by, not only investing directly in startups, but also assisting with the investment process – including due diligence and deal execution. Furthermore, the early-stage investors are also heavily involved in the post-investment period, providing support to their [Alumni companies](http://startupfundingclub.com/track-record) and using its network of investors and partners to actively aid in their development. The one-of-a-kind investment model presents numerous advantages for both investors and entrepreneurs. While the latter are able to source their funding more efficiently and receive support from SFC’s team of entrepreneurs and business angels, the former have the opportunity to co-invest alongside experienced angels of the award-winning SFC Angel Network and Startup Funding Club itself. Investing at an SEIS/EIS stage also gives investors the chance to gain exposure to innovative products and disruptive technologies while the companies are still in its early days, meaning that they can have a greater influence on the management of the business and help ensure they get the right support from the beginning. Dozens of SFC-funded companies gathered for the SFC Alumni Summer Party last August. Investors also benefit from having a wide range of investment opportunities carefully sourced by SFC to choose from, with fund investors receiving exposure to a diversified portfolio assembled by the fund managers. Being based in one of the largest startup hubs in the world, SFC profits from an exceptional deal-flow and reviews 2,000 applications for funding every year. The high demand for its services has forced Startup Funding Club to become very meticulous in its selection process, on-boarding only the best candidates. The huge amount of applicants is also key in building [SFC’s portfolio](http://startupfundingclub.com/track-record), allowing it to have great diversification. As previously hinted, the relationship between Startup Funding Club and its investee companies does not finalise once the investment has been made. Startups are backed by the organisation and angel investors through their journey, with SFC often sitting at their board meetings. The young businesses also go on to become part of the SFC Alumni Network, enabling entrepreneurs to meet and support each other. Despite its young age, many investors and entrepreneurs have already relied on Startup Funding Club’s model and expertise. The organisation’s angel syndicate currently has over 300 active angel investors and, to date, SFC has invested over £13 million and boasts of a diversified portfolio of more than 100 businesses, which include high growth companies such as [Onfido](http://onfido.com) and [eMoov](http://emoov.co.uk). Investors and early-stage companies are not the only ones that have put their trust in the firm’s co-investment model. SFC counts on an extensive network of partners which includes the [London Co-Investment Fund](http://lcif.co). Angelika Burawska, Stephen Page and Joseph Zipfel collect the Lead Syndicate of the Year Award 2016. Startup Funding Club’s track record has not gone unnoticed by organisations as the [UK Business Angels Association](https://www.ukbaa.org.uk) either. The firm has been recognised as a leader in the early-stage investment world, with the SFC Angel Network being named the [Lead Syndicate of the Year award](https://www.ukbaa.org.uk/news/startup-funding-club-wins-lead-syndicate-year-award/) in 2016 and [finalist for the same title this year](https://awards.ukbaaevents.org.uk/). Further evidence on SFC being a referent in the UK startup scene is its [finalist status as Best Angel Syndicate and Best SEIS Investment Manager at the Growth Investor Awards 2017](https://growthinvestorawards.com/finalists/), which confirms its proficiency in its two investment modalities. These accolades bear testimony to the quality of the deal-flow and the strong activity and diversity of the SFC Angel Network and the SFC Funds. Having proved the effectiveness of its unique co-investment model, the group has now launched its first solo-managed SEIS/EIS fund, the [SFC Angel Fund](https://www.startupfundingclub.com/startup/140/sfc-angel-fund), which embodies the organisation’s core principles. The SFC Angel Fund follows the unique investment model of Startup Funding Club, allowing fund investors to co-invest with the SFC Angel Network and to get actively involved with fund companies. By following this model, fund investors gain access to the most exclusive early-stage deals in the UK, which are curated and advised by highly skilled and experienced entrepreneurs and business angels. Investors in the fund will acquire a portfolio comprised of the best 10-15 candidates that approach Startup Funding Club. In addition to being outstanding, all companies have the added value for investors of qualifying for SEIS or EIS. The SFC Angel Fund is a one-of-a-kind in its treatment of these schemes, allowing investors to choose which scheme they want to benefit from – with the option of investing through both. Despite having originated as a small-scale angel network, Startup Funding Club has evolved into much more. With the launch of its first fund and subsequent establishment of its innovative co-investment model, the firm soon became a stand-alone in its industry that is yet to be replicated. The system has proven advantageous for investors and entrepreneurs alike, who benefit from being part of an award-winning organisation that caters to the needs of both parts. The unique co-investment strategy has helped put SFC in a leading position in the UK’s early-stage investment world, and set the firm as an example of innovation for aspiring entrepreneurs that may one day ring Startup Funding Club’s doorbell. *Investment in early-stage companies involves high risks for investors. Investments through Startup Funding Club are only open to professional and sophisticated investors.* ## Related Articles 19 Apr 2017 [Events](https://sfccapital.com/blog/tag/events) ##### [Startup Funding Club holds its first Investor Event after the first close of the 2017 SFC Funds at The Ivy](https://sfccapital.com/blog/startup-funding-club-holds-investor-event-after-first-close-of-2017-sfc-funds-at-the-ivy) Startup Funding Club announces the close of the first tranche of the 2017 SFC SEIS/EIS Funds at its ... [Read More](https://sfccapital.com/blog/startup-funding-club-holds-investor-event-after-first-close-of-2017-sfc-funds-at-the-ivy) 26 Jul 2018 [News](https://sfccapital.com/blog/tag/news) ##### [SFC closes its 100th fund investment!](https://sfccapital.com/blog/startup-funding-club-closes-its-100th-fund-investment) SFC invests £570K into Blue Skies Space Ltd alongside the London Co-Investment Fund and Angel Invest... [Read More](https://sfccapital.com/blog/startup-funding-club-closes-its-100th-fund-investment) 22 May 2023 [News](https://sfccapital.com/blog/tag/news) ##### [The Latest on the New SEIS Rules](https://sfccapital.com/blog/the-latest-on-the-new-seis-rules) The Bill’s Parliamentary Process and Its Implications for Investors and Founders The highly anticipa... 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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. © SFC Capital - 2026 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Alex Batlle Bosch, Brand Manager", "url" : "https://sfccapital.com/blog/author/alex-batlle-bosch" }, "dateModified" : "2024-03-20T13:49:53.092Z", "datePublished" : "2017-10-24T05:38:00.000Z", "headline" : "Reinventing Early-Stage Investment | SFC Capital", "image" : [ "https://sfccapital.com/hubfs/Imported_Blog_Media/banner_1520349887.webp" ], "mainEntityOfPage" : { "@id" : "https://sfccapital.com/blog/reinventing-investment-startup-funding-club", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" }, "name" : "SFC Capital" } } ```