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SFC Investors Make 100x Return with Onfido Exit

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Onfido Acquired by Entrust in One of SEIS's Greatest Successes

Capital at risk. This communication is directed exclusively to professional investors only. 

The identity verification startup Onfido announced its acquisition by US payments giant Entrust with SFC Angel Network investors looking to make a 100x return in one of the largest tech exits of the decade, recognised by the UKBAA Awards as the ‘Exit of the Year’. 

Founded in 2012 by Oxford students Husayn Kassai, Eamon Jubbawy, and Ruhul Amin, Onfido received their first equity investment of £120k from the SFC Angel Network through SEIS after pitching at one of the first SFC Crocodile Lair pitching events in London. SFC's CEO, Stephen Page, was one of the angels who invested and became a board member. 

Over the years, Onfido has become a global leader in identity verification. It uses a wide array of AI tools to fight identity theft and spot deep fakes, preventing over 6 billion USD in potential fraud, according to a recent report from Onfido. 

Now, Onfido was acquired by the US payments giant Entrust in a remarkable acquisition for the UK's early-stage investment landscape. This acquisition represents one of the most significant tech exits in recent UK history and the second biggest ever reported SEIS exit

At the annual Angel Investment Awards by the UK Business Angel Association, Onfido was honoured with the ‘Exit of the Year’ award, sponsored by British Business Investments. 

This exit is a significant milestone for the SFC Angel Network, delivering staggering returns on investment. Stephen Page, CEO at SFC Capital, describes it as "one of the very best returns you can get in investing." 

Husayn Kassai recollects, "We were seeking £150,000 to grow our business to £2 million in revenue by 2016. It was a bold ambition, and though only a few investors initially showed interest, with one dropping out, we still received the investment to get us started." 

In Onfido's early days, when angel investing was more of an exception than the norm, the SFC Angel Network identified the exceptional potential of Onfido's founding team. Despite limited interest from the wider investment community, the network decided to back the three extraordinarily talented founders.  

This investment was not just a gamble on a promising business; it was one of the first under the Seed Enterprise Investment Scheme (SEIS), the then-novel government initiative designed to raise investment in early-stage startups. "Back when we invested in Onfido, nobody really understood the SEIS scheme," Stephen adds, "but its usefulness for both startups and investors cannot be exaggerated. This is one of the biggest exits under SEIS and a real testament to the scheme." 

Onfido and its initial investors were connected at one of SFC's first Crocodile Lair pitching events at the Home House, a private members' club in London. Home House and its sister club, Home Grown, are known for creating valuable networking opportunities between early-stage founders and investors, which also played a crucial role in Onfido's early success. "It's fascinating how places like Home House and Home Grown can bring together creators in a way that can make a real difference," says Stephen. 

Husayn Kassai, CEO and co-founder of Onfido reflects on the journey: "Our vision was always clear, but it required the right partners to believe in us from the start. The SFC Angel Network, and especially Stephen, saw beyond the immediate challenges to the potential impact we could have." 

Husayn has since become an investor in SFC Capital’s funds himself and already raised the pre-seed round for his new business. The edtech platform Quench.ai helps companies empower and upskill their workforce—lessons Husayn learned during his time at Onfido. 

Onfido's exit highlights the importance of angel networks like the SFC Angel Network in supporting startups. Also, it shows the incredible impact of government schemes like SEIS in manifesting the UK as an innovation hub. 

 

Past performance is not indicative of future results. The value of investments can go down as well as up. 

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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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