London Co Investment Fund launches with £85m to invest in tech start-ups
New fund dedicated to London firms will invest in a tech, digital and science start-up every week for the next three years
A new venture capital fund was announced yesterday with up to £85m to invest in London based start-ups in the science, technology and digital sectors. The London Co Investment Fund (LCIF) will team up with co-partners to invest in over 150 new businesses from 2014 to 2017.
The LCIF was established by Funding London (FL) and Capital Enterprise (CE) with an initial investment of £25m from the mayor of London’s Growing Places Fund.
The FL and CE will invest between £25,000 and £1m in seed rounds directed by the six chosen co-investment partners: Crowdcube/Braveheart Consortium, Wellington Partners, London Business Angels, Angel Lab, PLAYFAIR Capital and Firestartr.co. 38 venture capital funds initially applied to be partners.
Partners are obliged to invest at least £1 for every £1 invested by the LCIF, but on average the fund is expecting partners to invest £2.90 per ever £1.
According to CE’s CEO John Spindler, the LCIF “will be investing in one start-up every week for the next three years,” with the aim of helping fast growth start-ups to scale up by subsidising finance acquired through the six partners. The aim is not to help start-ups unable to get funding but rather allow fast-growth firms who are already raising to raise significantly more.
Co-founder of Crowdcube Luke Lang, who along with association partner Braveheart Investment Group plc has been awarded £5m of the overall fund, commented:
“For the UK Government to invest in London’s top start-ups through Crowdcube, alongside the crowd, is an exciting prospect…
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“Working with Braveheart, with its extensive fund management experience, we’re determined to deliver returns for investors and help London’s best technology, digital and scientific start-ups secure the investment they need to expand, create jobs and become the global pioneers of tomorrow.”