Are Fundraising Services FCA Regulated?

What UK startup founders need to know about compliance, credibility and risk.

When you’re building a startup, few things are more critical — or confusing — than raising your first serious round of funding. And right up there with pitch decks, valuation models, and investor outreach is a much murkier question:

Are the people helping me raise money actually regulated?

Whether you're working with a fundraising consultant, joining an accelerator, or being introduced to angel investors via a “network,” it’s fair to ask: Does this person need to be FCA authorised?

The short answer: Not necessarily. But the longer answer matters more — especially if you want to protect your business, your investors, and your reputation.

What Is the FCA — and Why Should Founders Care?

The Financial Conduct Authority (FCA) is the UK’s financial regulator. It oversees more than 50,000 financial services firms and sets rules designed to protect consumers, maintain market integrity, and promote healthy competition.

Its reach includes everything from banks and investment firms to fintech platforms and — critically — those involved in investment promotions or financial advice.

So where do startup fundraising services fit in?

Are Fundraising Services FCA-Regulated?

In most cases, no — fundraising services like introducers, accelerators, brokers, or startup consultants are not FCA authorised. And that’s usually fine — if they stay within legal limits.

The key distinction lies in what they do:

Many introducers rely on exemptions under the FCA’s regulatory framework — or partner with authorised firms who can approve communications when needed.

But the moment a service steps beyond “introductory” into “advisory” territory — or starts promoting investment opportunities — it may be crossing a regulatory line.

What Counts as a Financial Promotion?

According to the FCA, a financial promotion is any invitation or inducement to engage in investment activity. That includes things like:

• Sending an investor your pitch deck
• Promoting your raise on a website or social media
• Publishing an open call for investors

Unless you're promoting to self-certified high net worth or sophisticated investors, or your promotion is approved by an FCA-authorised firm, you may be in breach of the Financial Services and Markets Act (FSMA).

This is one reason many crowdfunding platforms are FCA regulated — because they publish and promote investment opportunities to the public, and therefore must meet strict compliance standards.

What Are the Risks of Using Unregulated Fundraising Services?

1. Legal risk

If your startup is involved in an unauthorised financial promotion, you — not just your introducer — could be liable. You may also have to withdraw offers or void agreements.

2. Investor risk

Sophisticated investors will often walk away from a deal that hasn’t been introduced or presented via compliant channels.

3. Reputation risk

Fundraising services vary wildly in quality. Without regulatory oversight, it's harder to assess who’s credible, experienced, or even operating in your best interest.

How Founders Can Protect Themselves

You don’t need to become a compliance expert — but you do need to ask the right questions.

Here’s a quick founder-friendly checklist:

✅ Are you or your firm FCA authorised?
✅ If not, are you working with a regulated partner to approve any financial promotions?
✅ Will you be giving advice on valuation, investor selection, or deal structure?
✅ Do you have references or verified track record with past clients?
✅ Can I see a sample of how my raise will be introduced to investors?

Even just asking these questions sends a clear message: I’m informed, and I take compliance seriously.

📍 Bonus tip: Before engaging any service, run a quick search on the FCA Register to check if they are authorised. It’s free, takes 30 seconds, and could save you a legal headache down the line.

Clarity Over Compliance

The UK startup fundraising ecosystem is fragmented — and in many places, only lightly regulated. That’s why transparency and due diligence matter so much.

Working with an unregulated fundraising service is not illegal — but working with one that misrepresents what they’re doing, or fails to act transparently, could cost you.

At ThatRound, we’re building a platform where founders can compare, evaluate and engage with a broad spectrum of fundraising services — with visibility into who does what, how they operate, and whether they’re FCA authorised (or working with someone who is). No more guesswork. No more grey areas.

Because clarity isn’t a luxury — it’s a necessity.

References & Resources:

• The Financial Services Register | https://register.fca.org.uk/s/