UK-based start-ups have received a boost from the news that the British Business Bank is establishing a programme worth £2.5 billion to assist new businesses to move to the next stage in their growth and development.
The bank estimates that by investing in parallel with private sector entities, it can mobilise £7.5 billion worth of investments through the British Patient Capital programme.
The programme has begun with an initial transfer of £400 million in existing and approved commitments from the British Business Bank to its British Patient Capital subsidiary.
Keith Morgan, Chief Executive, British Business Bank and Chair of British Patient Capital said: “A major barrier holding back the continued development of young innovative firms is access to longer-term investment.
“The lack of this patient capital slows these firms’ growth and holds back the UK’s productivity.
“British Patient Capital has been created in consultation with Government and the finance community to help ensure that high potential, high growth businesses can access the long-term finance they need to build the UK’s innovation economy.”
Further information on the scheme is available here.