London Co-Investment Fund

The London Co-Investment Fund (LCIF) was a significant initiative launched in 2014 by the Mayor of London, designed to bolster the capital's burgeoning tech, science, and digital sectors. Managed collaboratively by Funding London and Capital Enterprise, the fund's primary objective was to address the persistent funding gap faced by early-stage startups in the city. With an initial capital allocation of £25 million, LCIF aimed to stimulate economic growth and innovation by providing crucial seed and early-stage capital to promising London-based ventures.

LCIF operated on a co-investment model, strategically partnering with private investors such as angel networks and venture capital firms. This approach was instrumental in de-risking investments for private capital, as LCIF would typically match or contribute alongside private funding, thereby encouraging more private sector participation in early-stage deals. The fund focused on high-growth potential companies within the technology, digital, and life sciences domains. While the exact first cheque size varied depending on the round and co-investors, LCIF was capable of investing between £50,000 and £1 million into a single company, often through a series of investments as the company grew.

By the time the fund concluded new investments around 2018-2019, LCIF had made a substantial impact on London's startup ecosystem. It successfully invested in over 150 companies, playing a vital role in their early development and scaling. More impressively, the fund's co-investment strategy unlocked over £200 million in additional private capital for these startups, demonstrating its effectiveness in leveraging public funds to attract significant private sector investment. LCIF is widely regarded as a successful model for public-private partnerships in venture funding, having supported numerous innovative businesses and contributed to London's reputation as a global tech hub.