The 25m LCIF is backed by the government, having been launched by Funding London and Capital Enterprise in June. The capital was approved by Boris Johnson and is supplied by the London Enterprise Panel’s Growing Places Fund.
In particular, the project seeks startups that are fresh out of incubators and support services to help them as they prepare for the growth phase, and is prepared to provide between 250,000 for each company. In order to secure the funding, companies will be required to showcase the potential to build jobs, with the LCIF having a total target of creating over 2,500 new positions.
As the name suggests, it’s a collaborative project that’s designed to co-invest alongside competitively selected players in the early stage investment community into very early stage digital, science and technology businesses based in London that are ready to accelerate growth and create jobs.
The campaign hopes to attract investment from the private sector too, aiming for 2.90 of private investment for each 1 from the LCIF.
Johnson, said: Londons tech sector is flourishing and the city is a hotbed of talented young and ambitious people buzzing with exciting ideas who are setting up new companies in their droves. Despite this boom, we know that many budding startups find it difficult to raise the finance they need to grow. This new fund will ensure the tech giants of the future can get the support they need to bring their ideas to reality and deliver jobs and growth for the capital.
Crowdcube has been named one of six partners including Wellington Partners, Playfair Capital,
London Business Angels, Angel Lab, Firestartr which were all chosen after a year-long process and it’s the only crowdfunding channel on the list.
Going forward, 5m of the total 25m fund will go through Crowdcube, with the overall pot to provide 156 seed stage tech startups in the next three years.
Luke Lang, co-founder of Crowdcube, commented: For the UK government to invest in Londons top startups through Crowdcube, alongside the crowd, is an exciting prospect and underlines Crowdcubes reputation as an effective way for high growth tech firms to raise finance.
According to a statement, 5m is the highest amount awarded to any of the six partners based on Crowdcube’s success in helping startups and high growth companies. It will work with investment group Braveheart, which will be responsible for making investment and fund management decisions while Crowdcube will source the companies.
“Working with Braveheart, with its extensive fund management experience, were determined to deliver returns for investors and help Londons best technology, digital and scientific startups secure the investment they need to expand, create jobs and become the global pioneers of tomorrow,” Lang added.
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