A brand new fintech development fund will deploy as much as £800m per 12 months in funding for pre-IPO fintech corporations, in an effort to plug the £2bn fintech development funding hole.
The fund will make 4 to eight investments per 12 months on common, starting from £10m to £100m. The primary funding might be made throughout the last quarter of this 12 months. It’ll solely make minority investments for fairness and equity-linked securities.
The fund is backed by Barclays, London Inventory Change Group, Mastercard, NatWest and Peel Hunt. In addition to offering funding for development companies, it would additionally supply strategic help to its portfolio corporations.
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The Fintech Progress Fund was established following the publication of the Kalifa Overview in 2021, which referred to as for extra funding within the fintech sector.
“The fund represents one other key constructing block within the help ecosystem for development stage UK fintech companies,” stated Sir Ron Kalifa, writer of the Kalifa Overview.
“This is a crucial step ahead in direction of guaranteeing the UK retains its management function in fintech.”
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“The UK has all the time been on the forefront of innovation in fintech however there’s a very clear and well-evidenced development funding hole,” added Fintech Progress Fund co-founder and managing companion Phil Vidler.
“The Fintech Progress Fund will tackle the shortage of obtainable development capital by offering a first-of-its-kind home, growth-stage, fintech-focused enterprise capital fund backed by strategic traders.”
The fund’s non-executive advisory board might be chaired by former Chancellor of the Exchequer Lord Philip Hammond.
Dame Jayne-Anne Gadhia, Snoop founder and former Virgin Cash chief government might be a part of the crew alongside PensionBee chief government Romi Savova, former Lord Mayor of London Sir Charles Bowman and former Newton chief government Dame Helena Morrisey.
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