Investors in early-stage companies across the UK will be able to access £100 million in the latest stage of the British Business Bank’s Investor Pathways Capital initiative.
The scheme supports first-time venture capital investment fund managers from a wide range of backgrounds to back small businesses. The aim is to expand access to venture capital beyond London. Start-ups in the capital raise around 75% of UK venture capital annually.
Investor Pathways Capital will invest £400 million in total. In June, the British Business Bank committed up to £90 million to 10 new microfunds and applications for the next £100 million will open this autumn.
Chancellor John Healey said:
“One of my priorities as chancellor is wealth creation. 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 £100 million boost will help provide the fuel to drive new life into local economies up and down the country.”
Economic Secretary to the Treasury Lucy Rigby added:
“We want growth in every postcode and businesses are integral to that as the absolute backbone of our economy.
“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.”