British Business Bank says it will dedicate £6.6 billion to support innovative, early stagefirms.
The Secretary of State for the Department for Business and Trade said the funds were being committed by the British Business Bank to “boost growth, marking a major step change in financing to support smaller businesses to start and scale in the UK.”
According to a release, £4 billion will go to the British Business Bank Industrial Strategy Growth Capital initiative supporting manufacturing, clean energy industries, creative industries, defence, digital technologies, financial services, life sciences, and professional and business services.
The balance of £2.6 billion will support entrepreneurs’ access to capital.
At the same time, the bank noted that reforms to its governance and financial arrangements will be implemented by the end of this financial year.
Louis Taylor, CEO of the British Business Bank, stated that by leveraging their market expertise and reach, they play a critical role in supporting smaller businesses in the eight growth-driving sectors to grow and remain in the UK.
“This is a strong endorsement of the Bank’s 10-year track record, market access and capabilities, including our position as the largest investor in UK venture and venture growth capital funds and the most active late-stage investor in UK life sciences and deeptech,” said Taylor.
As part of the plan to support entrepreneurs, the bank announced the launch of two new funds designed to address funding gaps in underserved areas in the East and South East of England.
Access to capital is vital to sustain any innovation-driven economy. Venture funding or risk capital is needed to support risky firms, many of which may fail. At the same time, successful firms can have a disproportionately large impact on job creation and prosperity.