--- title: Searching for a Lead investor description: Searching for a Lead investor image: https://sfccapital.com/hubfs/AI-Generated%20Media/Images/A%20female%20founder%20looking%20through%20a%20magnifier%20to%20see%20lots%20of%20people%20with%20money.jpeg --- 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) # Searching for a Lead investor [Michael Theodosiou, Portfolio Executive](https://sfccapital.com/blog/author/michael-theodosiou-portfolio-analyst) Portfolio Executive at SFC, brings experience in Equity investments and Alternatives. 10 Jun 2024 [Startups](https://sfccapital.com/blog/tag/startups) ##### Share on - - - #### A quick guide into finding a Lead Investor for your funding round ##### The role of a Lead Investor In the dynamic world of early-stage investments, a Lead Investor can inspire trust in your startup and encourage other investors to join the journey. Some Lead Investors inject substantial funds, while others bring invaluable experience as five-star experts. Their backgrounds often feature past support for startups and successful exits, offering a network of contacts and industry knowledge. They typically maintain a distance from the day-to-day operations of the business but remain easily accessible. Lead Investors play a central role in concluding funding rounds by rallying fellow investors to follow suit and creating a ‘fear of missing out’ amongst the wider investor community. They perform crucial steps such as negotiating term sheets and conducting due diligence. The presence of a Lead Investor signals to other potential backers who may not be able to lead that a seasoned investor is attracted to the funding round, instilling confidence and mitigating risks. In summary, a lead investor is more than just an investor, contributing a substantial portion of the capital needed to finance a funding round. They open doors and propel startups forward. ##### How to find a Lead Investor Create a hitlist of VCs and angel houses that are likely to be interested in the venture you’re offering, considering both industry and product relevance. Leverage free sources like [Barclays Demo Directory](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Flabs.uk.barclays%2Fdemo-directory%2F&data=05%7C02%7CMichael%40sfccapital.com%7C2745fb8f1a74480887bd08dc2d8f9d2d%7C7a0ca08d852b44c4821543fcebf605ae%7C0%7C0%7C638435342033330361%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=m2cQ%2FiQx0q0KAvewh91xj1qpbBonxUALoy22cyLuxIk%3D&reserved=0), which connects founders with potential investors, and [Ship Shape](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.shipshape.vc%2Fsearch&data=05%7C02%7CMichael%40sfccapital.com%7C2745fb8f1a74480887bd08dc2d8f9d2d%7C7a0ca08d852b44c4821543fcebf605ae%7C0%7C0%7C638435342033339497%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=f06VUv%2BNKNJ15tHDDg4h4869qM6KwwbarIuOb300EdE%3D&reserved=0)to identify VCs and contact details for outreach. Explore premium platforms such as [PitchBook](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fpitchbook.com%2F&data=05%7C02%7CMichael%40sfccapital.com%7C2745fb8f1a74480887bd08dc2d8f9d2d%7C7a0ca08d852b44c4821543fcebf605ae%7C0%7C0%7C638435342033346372%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=fmPTxVBusPv6ao1pfEnFXFFBzdDKXHMfFM3w%2FyCo7Kc%3D&reserved=0)and [TechCrunch](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Ftechcrunch.com%2F&data=05%7C02%7CMichael%40sfccapital.com%7C2745fb8f1a74480887bd08dc2d8f9d2d%7C7a0ca08d852b44c4821543fcebf605ae%7C0%7C0%7C638435342033353062%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=mBxdMUdvWS0kJWOdOVEaTD8UlCyE9wun47QPlP8mgDw%3D&reserved=0)for investor information and market insights. Use [Beauhurst Invest](https://gbr01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.beauhurst.com%2Fproducts%2Fbeauhurst-invest%2F&data=05%7C02%7CMichael%40sfccapital.com%7C2745fb8f1a74480887bd08dc2d8f9d2d%7C7a0ca08d852b44c4821543fcebf605ae%7C0%7C0%7C638435342033359578%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=Wf0NPF7IWAUAp%2BQ3l6k8sxxp4Rp1bdVAvNuJPn9q2ro%3D&reserved=0) to extract ownership tables for companies operating in a similar environment. And scour LinkedIn for the loudest investor voices that align with your vision.  When reaching out to potential Lead, ensure the approach is warm and personalised. Connect using a contact name first, explore social media feeds for insights and craft emails with specific details to capture the interest of potential lead investors. #### How to approach a Lead Investor Begin by assessing the potential Lead Investor’s interest and avoid revealing your cards too early. Some prospective Lead Investors may seek information for a competitive advantage, so business details should be disclosed carefully. Create a desire for more information, and as the relationship deepens, progress to the next stage. Ensure you're well-prepared for the initial pitch by crafting a compelling deck about your business with key details, market strategy and forecasts. This is often necessary to capture a Lead's interest. When the initial pitch occurs, keep it concise with minimal slides and be ready for questions. The Lead Investor will inevitably seek more details, possibly including financial information. Once the Lead is engaged, assemble a term sheet with them. While not legally binding, it aligns critical deal terms before progressing towards a final shareholders’ agreement. Consider collaborating with platforms like [SeedLegals](https://seedlegals.com/)for a cost-effective and comprehensive term sheet. A term sheet is your bridge to the next stage, covering ownership, control, valuation techniques and crucial investor rights. ## Related Articles 12 Jan 2023 [Investors](https://sfccapital.com/blog/tag/investors) ##### [Becoming an Angel](https://sfccapital.com/blog/becoming-an-angel) How to build your Angel Investment portfolio and where to start. Please note: Capital at risk. For p... [Read More](https://sfccapital.com/blog/becoming-an-angel) 26 Jan 2025 [News](https://sfccapital.com/blog/tag/news) ##### [SFC Capital Invests Into 500th UK Startup](https://sfccapital.com/blog/500) SFC Capital is marking an important milestone: We have now officially invested in our 500th portfoli... [Read More](https://sfccapital.com/blog/500) 2 Mar 2023 [Startups](https://sfccapital.com/blog/tag/startups) ##### [The high valuation trap](https://sfccapital.com/blog/high-valuation-trap) Why maximising your startup’s valuation may not be a good idea Valuing a startup has never been easy... [Read More](https://sfccapital.com/blog/high-valuation-trap) [![SFC Logo + Title x web (white)](https://sfccapital.com/hs-fs/hubfs/SFC%20Logo%20+%20Title%20x%20web%20(white).png?width=2000&height=318&name=SFC%20Logo%20+%20Title%20x%20web%20(white).png)](https://sfccapital.com) - [Startups](https://sfccapital.com/raise) - [About Us](https://sfccapital.com/about-us) - [Blog](https://sfccapital.com/blog) - [Terms of Use](https://sfccapital.com/terms) - [Press](https://sfccapital.com/press) - [EIS Fund](https://sfccapital.com/eis-funds) - [SEIS Fund](https://sfccapital.com/seis-funds) - [SEIS Explained](https://sfccapital.com/seis-explained) - [EIS Explained](https://sfccapital.com/eis-explained) - [Advisors](https://sfccapital.com/advisors) - [Anti-Slavery Policy](https://sfccapital.com/anti-slavery-policy-statement) - [Privacy Policy](https://sfccapital.com/privacy) - [ESG Statement](https://sfccapital.com/esg-statement) - [Complaints Policy](https://sfccapital.com/complaints-procedure) - [FAQ's](https://sfccapital.com/faq) - - - [Login](https://portal.sfccapital.com/login) #### Partners: [![mayor of london logo](https://sfccapital.com/hs-fs/hubfs/mayor%20of%20london.png?width=564&height=247&name=mayor%20of%20london.png)](https://www.london.gov.uk/programmes-strategies/shaping-local-places/funding-opportunities/london-co-investment-fund-lcif) [![london coinvestment fund logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/london%20coinvestment%20fund.png?width=564&height=247&name=london%20coinvestment%20fund.png)](https://www.london.gov.uk/programmes-strategies/shaping-local-places/funding-opportunities/london-co-investment-fund-lcif) [![smb logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/smb.png?width=564&height=247&name=smb.png)](https://www.smb.london/) [![Young talent logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/Young%20talent%20(1).png?width=600&height=296&name=Young%20talent%20(1).png)](https://yourtalentsolutions.co.uk/) [![eisa logo](https://sfccapital.com/hs-fs/hubfs/eisa.png?width=564&height=247&name=eisa.png)](https://www.eisa.org.uk/) [![Bennet brooks logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/Bennet%20brooks.png?width=564&height=272&name=Bennet%20brooks.png)](http://www.bennettbrooks.co.uk/) [![SFC Web - HP - Partner Logos - British Business Bank (BBB BBI) (white; 104 x 50px)](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logos%20-%20British%20Business%20Bank%20(BBB%20BBI)%20(white%3B%20104%20x%2050px).webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logos%20-%20British%20Business%20Bank%20(BBB%20BBI)%20(white%3B%20104%20x%2050px).webp)](https://www.bbinv.co.uk/) [![ukri - innovate uk logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/ukri%20-%20innovate%20uk.png?width=564&height=248&name=ukri%20-%20innovate%20uk.png)](https://www.ukri.org/councils/innovate-uk/) [![investing in women code logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/investing%20in%20women%20code.png?width=564&height=248&name=investing%20in%20women%20code.png)](https://www.gov.uk/government/publications/investing-in-women-code) [![uk business angels logo](https://sfccapital.com/hs-fs/hubfs/SFC_Capital_Theme/Image/uk%20business%20angels.png?width=564&height=247&name=uk%20business%20angels.png)](https://www.ukbaa.org.uk/) [![SFC Web - HP - Partner Logo (white; 104 x 50px) - Home Grown](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Home%20Grown.webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Home%20Grown.webp)](https://homegrownclub.co.uk/) [![SFC Web - HP - Partner Logo (white; 104 x 50px) - Markel](https://sfccapital.com/hs-fs/hubfs/SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Markel.webp?width=520&height=250&name=SFC%20Web%20-%20HP%20-%20Partner%20Logo%20(white%3B%20104%20x%2050px)%20-%20Markel.webp)](http://www.markelinternational.com/) 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. © SFC Capital - 2026 ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Michael Theodosiou, Portfolio Executive", "url" : "https://sfccapital.com/blog/author/michael-theodosiou-portfolio-analyst" }, "dateModified" : "2024-09-30T11:28:06.712Z", "datePublished" : "2024-06-10T16:54:00.000Z", "headline" : "Searching for a Lead investor", "image" : [ "https://sfccapital.com/hubfs/AI-Generated%20Media/Images/A%20female%20founder%20looking%20through%20a%20magnifier%20to%20see%20lots%20of%20people%20with%20money.jpeg" ], "mainEntityOfPage" : { "@id" : "https://sfccapital.com/blog/searching-for-a-lead-investor", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" }, "name" : "SFC Capital" } } ```