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Looking Back at 2024: A Landmark Year for SFC Capital

Joseph Zipfel, Chief Investment Officer With a background in investment banking and a Master's from ESCP Europe, Joseph manages SFC Capital's investments, investor relations, and portfolio company fundraising strategies since 2014.
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As we close the chapter on 2024, we reflect on another milestone year for SFC Capital. 

With nearly £20 million invested across 110 deals, we continued our mission to support the UK’s most innovative startups and scale-ups. This included investments in 75 new companies and 35 follow-on rounds for some of our standout portfolio performers.

This year, we were proud to be recognised as the UK’s most active Deep Tech investor by Beauhurst and to be named by Sifted as one of Europe’s top 10 investors in Climate, Healthtech, and Fintech

It is truly extraordinary to be recognised as a leading seed investor in some of the most exciting sectors of the innovation economy. This position provides us with a unique vantage point on the trends shaping the entrepreneurial ecosystem.

 

Trend #1: The Rise of Deep Tech

Deep Tech continues to take centre stage, driven by the rapid advancement and adoption of AI across sectors. From healthcare to enterprise solutions, the race to integrate and adapt is accelerating, with no room for complacency. 

We’re amazed at the speed at which some of our companies have made AI an integral part of their product and entire operations, such as Cognism, which basically became an AI-first company in the space of a few months, with a huge increase in operational efficiency. Truly incredible to see.

We are doubling down on Deep Tech and have deepened our ties with the UK’s top universities and accelerators, allowing us to identify groundbreaking startups at their earliest stages. We have now proudly invested in spin-outs from ALL the leading incubators of Deep Tech companies in the UK, including the Universities of Oxford, Cambridge, Imperial, Manchester, Bristol, UCL, Sheffield, and more.

Trend #2: Green Tech Comes of Age

While the headlines have recently focused on challenges faced by the European Green Tech sector such as those faced by EV-related ventures, we believe 2024 demonstrated the maturity of Green Tech. Clean Tech is no longer just a promise—it’s delivering results.

A shining example is Naked Energy, a solar technology portfolio company that closed a £17m Series B funding round led by E.ON and Barclays but also delivered groundbreaking projects, including the UK’s largest solar heat installation at the British Library. The commercial traction and funding momentum in Clean Tech are tangible and encouraging us to double down on this sector.

Trend #3: The Growing Role of Secondaries

Secondaries are becoming a more frequent feature in Series A rounds and beyond, reflecting a maturing ecosystem. These transactions allow early-stage investors to realise returns while reinvesting in the next generation of innovators—a trend we wholeheartedly welcome.

In 2024, SFC Capital closed four secondary deals, delivering positive returns of 10x, 6x, 4x, and 2.5x. These exits underscore the strength of our portfolio and the capacity to generate liquidity from early-stage investments. We are only expecting this trend to accelerate as we are witnessing the launch of several funds with dedicated secondary strategies in the UK and Europe.

Looking Ahead

As we celebrate these successes, we remain focused on the future. Our team’s hard work has positioned us for even greater accomplishments, and we are excited to share some major announcements in early 2025.

To our investors, founders, and partners—thank you for being part of our journey. Together, we are shaping the future of innovation. Here’s to an even brighter 2025!

 

 

Capital at risk. For professional investors only. 

Past performance is not indicative of future performance. 

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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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