4 min read

How SeedLegals helps fuel SFC Capital's rapid-fire deal execution

Published: Jun 12, 2024

Contents

Streamlining the investment process to accelerate speed of execution

A dedicated funding strategist on each deal

Flexible funding terms save time later

Building trust with founders and developing industry-standard terms

Any advice for investors?

How can we help you streamline your investments?

Kirsty MacSween

When it comes to investing in early-stage startups, SFC Capital is a force to be reckoned with. As one of the most active funds in Europe, they’ve invested in close to 500 companies – completing a number of those investments through the SeedLegals platform.

In 2023, they became an official investor partner of SeedLegals, expanding on the existing support and getting access to streamlined investment and enhanced processes across a substantial portion of their deals. Through the partnership, SeedLegals provides beginning-to-end funding documents for SFC, prepopulated with the specific terms SFC requires, and also manages SEIS3 compliance certification on their behalf. Our formal relationship means rounds are frequently completed in just one week from Term Sheet to close, sometimes in as little as 24 to 48 hours.

We sat down with Investment Executive Edward Stevenson, who screens and selects investment opportunities for SFC, to find out more about how we help SFC:

Streamline the investment process, saving time and money
Build trust and confidence with their portfolio companies
Develop industry-standard terms for early-stage deals

SFC invests in SEIS-eligible companies across all sectors and stages

After investing up to the £250,000 limit from their SEIS Fund, alongside potential further funds from their wider investor network, SFC may provide follow-up funding for subsequent rounds through their EIS Fund.

In this way, they support the top-performing portfolio companies all the way through from prototype to revenue generation, and beyond.

Find out more and apply for funding

Streamlining the investment process to accelerate speed of execution

Before our official partnership began, SFC already had a lot of experience using the SeedLegals deal flow to negotiate terms and manage investment legals. Adding their documentation to the platform allowed them to save even more time and money.

We close roughly 100 investments a year, all of which require individual documentation and a number of these companies request to use the SeedLegals platform to complete the investment.
We need to work in as quick a timeframe as possible, and also in the most cost-efficient way. Traditionally within the legal industry, if left unchecked, there’s no cap on fees and costs and the longer a process takes, the more expenses mount up. Working with SeedLegals is great because we can get familiar standardised documents in place and on the platform.
Edward Stevenson
Investment Executive,
SFC Capital

Together, SFC and SeedLegals have the investment process down to a fine art. With SFC’s specific terms coded into our platform and the dedicated support of an account executive, SFC can move through the deal workflow at a truly impressive pace.

There’s little doubt that SFC holds the record at SeedLegals for fastest average close per deal. The next milestone? They’re gunning for the honour of fastest individual deal close at next year’s SeedLegals Startup Awards to keep beside their 2024 SEIS Fund of the Year trophy.

A dedicated funding strategist on each deal

Having a SeedLegals point of contact for both parties saves us so much time. Any requirements, concerns and questions can go through our dedicated account specialist, who knows us really well and understands whether there’s any room for movement or not.
Edward Stevenson
Investment Executive,
SFC Capital

SFC had some specific shout outs for the SeedLegals team. First up, Zlatina Trifonova for her unrivalled SEIS expertise.

From the founders’ perspective, their account specialist Boyan Vassilev functions as an indispensable resource to founders in SFC’s investment rounds. Because Boyan knows SFC’s requirements in detail, he helps founders understand the initial proposal, explains the implications behind each deal term, then helps the founders negotiate on areas which allow flexibility. This speeds up the process for both the founders and SFC and helps founders become more comfortable with the documentation they’re signing, and request any amendments which match their negotiating position.

The SeedLegals team also maintains rigorous conflict of interest policies to make sure it has separate unconnected advisors supporting SFC and the founders’ companies, making sure each party can achieve the most favourable commercial outcome for them in line with market and industry standards.

Flexible funding terms save time later

Another feature we find helpful is the ability to raise further funds as part of the round and the flexibility within the documentation to put those permissions in place upfront.
Edward Stevenson
Investment Executive,
SFC Capital

SeedLegals pioneered agile fundraising in the UK through SeedFASTs and Instant Investments. It’s now easier for companies to raise smaller amounts of money before, after or even instead of a traditional large funding round.

This flexibility is also helpful for investors, because these funding methods make it faster to get your investment closed and sorted – without having to wait around for other participants in the round. This is especially helpful when you’re coming up to the end of the tax year and racing to deploy your SEIS or EIS investments.

Building trust with founders and developing industry-standard terms

For many founders, raising capital is a daunting experience, especially when it comes to navigating complex legal agreements. SeedLegals’ platform has played a crucial role in building trust and confidence among SFC’s portfolio companies.

Having our documents on SeedLegals gives founders confidence that they’re signing industry-standard terms. It shows that we’re in line with what investors should expect at this stage, and that helps them feel more comfortable with the process. That third-party stamp of approval that comes with working with SeedLegals reassures founders. And that really helps with the two points of speed – execution and cost.
Edward Stevenson
Investment Executive,
SFC Capital

Any advice for investors?

Back people, not ideas. It’s easy to get distracted by a good idea or a nice shiny looking product, and it can be easy to be blinded by that. But if the right team isn’t in place to drive it forward, it’s not going to work.
Edward Stevenson
Investment Executive,
SFC Capital

How can we help you streamline your investments?

SeedLegals supports angels and funds to sort the documentation they need, speed up negotiations and close deals in record time. Book a time to chat with us to find out how we can help.