SFC is one of the most active seed-stage investors in the UK. It manages an SEIS fund – selecting very early-stage companies to invest in, and supporting them through the first 12-18 months – and an EIS fund that makes follow-on investments in the companies it believes have the most potential. What should investors expect in terms of portfolio size, risks, and potential returns? And what are some examples of companies SFC has backed and exited to date? We talk to Ed Prior, head of investor services at SFC Capital, to learn more. In this interview:
0:00 About SFC Capital
1:35 What’s the purpose of the SFC funds?
2:13 “A key feature for investors in our funds”
2:51 Increased limits for SEIS investing
4:09 What goes into SFC’s “scoring system” for companies?
5:18 “Innovation hunters” – how SFC sources investments
6:12 Investing in Fussy (natural products in the bathroom), via the Beauty Accelerator programme
8:06 Does the gloom in the economy affect SEIS investment?
9:50 Investing in Ki Hydrogen (green hydrogen from biomass) and BirdsEyeView (automated underwriting platform)
10:56 Investing in 4D Bio (resorbable materials for surgeons)
11:56 Blue Skies Space (space data on subscription)
12:42 How does SFC work with over 400 portfolio companies in practice?
13:56 Exit activity, and the role of Jason Druker
15:17 Cognism – biggest exit so far
15:57 Risks
16:34 Losses vs zombies
17:08 Summary: why invest with SFC?

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IMPORTANT
The opinions expressed in this video are the interviewee’s own and do not necessarily reflect the view of Wealth Club Limited. This interview, like our service, is not advice and the products featured are not suitable for everyone. SEIS and EIS investments are high risk and illiquid. You could lose your capital. Tax rules can change and tax benefits depend on your circumstances. If you’re unsure an investment is right for you, please seek professional advice.