UK expands venture capital access for early-stage firms

Move part of government's Investor Pathways Capital Initiative.

The UK government has announced the next phase of its Investor Pathways Capital Initiative, aiming to support early-stage companies across the country by widening access to venture capital.

As part of the initiative, which is implemented by government-owned economic lender British Business Bank, the plan is to invest more than $135m (£100m) to launch new venture capital funds for the benefit of businesses that are looking to grow.

"Investors in early-stage companies across the UK can access a multi-million-pound investment boost as the Chancellor backs growth in every postcode through the next £100m phase of the British Business Bank's Investor Pathways Capital Initiative," the announcement noted, referring to Chancellor of the Exchequer John Healey MP.

"Supporting talented, first-time venture capital investment fund managers from a wide range of backgrounds, the initiative, which will invest £400m in total, helps businesses scale up as the fund managers provide the catalytic early capital that innovative, early-stage businesses need to scale up drive local growth and create more good British jobs."

The idea is to broaden businesses' access to this crucial funding beyond London. Applications for this round will open in September. A previous cohort under the wider initiative was for microfunds amounting to £90m.

"We want growth in every postcode, and businesses are integral to that as the absolute backbone of our economy," said Economic Secretary to the Treasury Lucy Rigby, who recently met with stakeholders in Yorkshire.  

"Unlocking investment and capital for British businesses, backing firms with practical support, and ensuring businesses wherever they are can get the finance they need to grow, innovate, and create jobs."
             
Healey, meanwhile, pointed to wealth creation as a priority.

The Chancellor commented: "That means building an economy that helps people live well. I know there is a cost of business, and it will not go unnoticed.

"This must involve stepping up our support for the businesses who invest in people, and this £100m boost will help provide the fuel to drive new life into local economies up and down the country."