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British Business Bank: Enterprise Capital Fund

Finance and Risk Capital

Impact for scaleups

545

Companies backed

47%

Investment outside of London

Key sectors

Building & Construction Creative, digital, film, games & media Defence & security Engineering / Advanced Engineering Environmental Science & Technology Farming, fisheries & forestry Finance Food & drink Healthcare Impact ventures / Social Impact Life Sciences & Biotech Manufacturing / Advanced Manufacturing Professional services Technology & Communications Transport & Logistics

The British Business Bank’s Enterprise Capital Funds (ECF) programme is a significant part of the UK venture capital industry, combining private and public money to make equity investments in high growth businesses. In 2017, the Government announced a commitment of up to £1bn to the programme over the next ten years.

The ECF programme is designed to increase the supply of equity to UK growth companies and to lower the barriers to entry for fund managers looking to operate in the venture capital market.

Since their inception in 2006, 28 ECFs have been launched, supporting 545 innovative growing businesses across a range of sectors. The top five sectors supported by ECFs are SaaS, AI, industrials, e-commerce, and healthcare – 47 per cent of the investments are outside of London.

The British Business Bank invests alongside VC funds on terms that improve the outcome for private investors when those funds are successful. The ECF programme has helped 16 fund managers to raise their first institutional fund and so far 63% of these have already gone on to raise a further fund. The average size of an ECF has increased from £20m to closer to £60m during the lifetime of the programme.

From inception the ECF programme has committed more than £1.2bn of finance, of which British Business Bank has contributed almost £700m. The bank operates a rolling investment programme for commitments to new ECFs and welcomes new applications from UK fund managers.

The current fund partners are: Accelerated Digital Ventures, Active Partners, Amadeus Capital Partners, Catapult Ventures, Dawn Capital, Edge Capital, Entrepreneur First, Episode 1, Foresight Group, Imbiba, IQ Capital, Longwall Ventures, MMC Ventures, Notion Capital, Panoramic Growth Equity, Passion Capital, Pentech, Seraphim Capital, Sussex Place Ventures, and VGC Partners.

                       

British Business Bank: Enterprise Capital Fund website