£85m investment fund for London tech startups
by Startacus Admin
Jolly good news if you happen to be a tech startup in London
Up to £85Million of venture capital has just been announced, which will see 150 new London tech businesses benefit from a substantial cash injection between now and 2017.
Aimed at fresh high growth startups working within the science, technology and digital spheres, the London Co Investment Fund (LCIF) should help make securing large levels of seed investment, significantly more straightforward for startups who meet the selection criteria.
With £25Million in backing from the Mayor’s Growing Places Fund and the management of Funding London and Capital Enterprise, the money will find its way to some of the best and brightest tech businesses that London has to offer.
In fact, by the end of the co-investment project, it is hoped that 150 new businesses will have benefited from the fund and achieved a target of creating 2500 new jobs within the specified sectors.
Following the launch of the fund Mayor Boris Johnson said:
“London’s tech sector is flourishing and the city is a hotbed of talented young and ambitious people buzzing with exciting ideas who are setting up new companies in their droves. Despite this boom, we know that many budding startups find it difficult to raise the finance they need to grow. This new fund will ensure the tech giants of the future can get the support they need to bring their ideas to reality and deliver jobs and growth for the capital.”
Co Investment
As the fund’s name suggests, the investment process will take the form of a collaboration between Funding London, Capital Enterprise and 6 strategic partners, specifically selected for their connections to the early stage startup scene.
Crowdcube/Braveheart Consortium, Angel Lab, Wellington Partners, PLAYFAIR Capital, Firestartr.co, and London Business Angels will all operate as investment partners, under the proviso that for every £1 of initial investment taken from the fund they will invest at the very least 1 additional pound. This means that should all £25 million of the government’s input be allocated, a further £25 million in private funds will also be released. It is predicted though that actual partner investment figures will be much higher, with every £1 being matched with a £2.90 private input.
That would mean a total investment pot of almost £100m.
The Details
The focus of this fund is high growth and it’s designed to be a way of significantly increasing the level of capital investment which is available to burgeoning new businesses at any one time. The money will be released in seed rounds carried out by each of the 6 co-investment partners, with sums of between £250,000 and £1,000,000 being drilled into successful applicants.
The hope is that such large investments will accelerate their growth and help them to develop and mature as quickly as possible, creating jobs for the local economy and reaffirming London’s status as a leader of global technology.
Pop over to the LCIF site for more info.
(There’s no hurry though, since this particular fund is going to be around for quite a while).
Interested in investment? Check out some of our recent posts on the matter:
Explaining the Enterprise Investment Scheme and the Seed Enterprise Investment Scheme
Angel investment- Expalined
Asking your Family and friends to invest in your startup- The Basics
How to make the most of crowdfunding
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Got a business in the manufacturing sector? These tips on how you can reduce energy costs while being more sustainable are well worth a read...
 Daniel Dierkes, David Schara, and Maximilian Geißinger 2.jpeg)
Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.
Nassia Skoulikariti, Director of IoT Programmes, Mobile Ecosystem Forum shares some insights on how IoT is having a significant impact on all our lives.
.jpg)
Roger James Hamilton, Founder and CEO of Genius Group, a world-leading entrepreneur Edtech and education group, discusses how introducing a globalized curriculum will help better prepare students.
SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.
41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.
Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.
Thingtrax Secures £4.3M to Empower Manufacturers to Build the Factories of the Future
A measure of inflation relief for small firms sees transport costs fall but service price increases remain elevated
Bedfordshire-based HR tech startup HR DataHub has built a range of tools for HR departments
Published on: 10th December 2014
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- SureIn Secures €4M to Close the SMB Insurance Gap 15th Aug 2023 Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.
- SuperFi raises $1M pre-seed funding round 28th Jul 2023 SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.
- Startups rely on AI & sustainability for new partnerships 27th Jul 2023 41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.
- Another Round closes £300k Seed round to revolutionise personal training 21st Jul 2023 Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.
