The British Business Bank (“BBB”) is a government-owned business development bank based in the United Kingdom. It is not a banking institution in the traditional sense and does not operate as such. It does not lend or invest directly but works with over 100 partners, such as banks, leasing companies, venture capital funds and web-based platforms, to bring Government money to the smaller business finance markets.
The Enterprise Capital Funds (“ECFs”) programme is one of the BBB’s flagship programmes. It provides public money to venture capital funds looking to make equity investments in small and medium-sized high growth businesses, especially those operating in a part of the market where small and medium-sized enterprises are not able to access the growth capital they need.
Since inception, around £1.05bn (including third party money) has been committed through the ECFs programme. Over £573m of such funding has been drawn and the ECFs programme has quickly become a significant part of the UK venture capital industry, with 25 funds facilitating finance to around 380 SMEs.
At Budget 2017 on 22 November, the UK Government committed to maintaining the ECFs programme with up to £1bn of commitments over the next 10 years.
If you are a venture capital manager or serial entrepreneur looking to launch a venture capital fund with funding provided by the BBB, please contact us. FS REG can help you to apply and obtain such funding.
Disclaimer: This article provides general information only. It is not intended to be comprehensive and does not constitute the provision of legal or regulatory advice. FS REG is not responsible for any action taken or omitted to be taken on the basis of the information contained in this article. © 2018 FS REG Limited (www.fsreg.com). All rights reserved.