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UK government

Europe, England, United Kingdom, London

Description

The UK government plays a significant and multifaceted role in the nation's venture capital ecosystem, primarily operating through the British Business Bank (BBB). Established in 2014, the BBB's mandate is to increase the supply and diversity of finance for UK businesses, addressing market failures and fostering economic growth. While it primarily acts as a fund-of-funds, investing in private venture capital firms that then deploy capital into startups, the government also engages in direct and co-investment initiatives to support strategic sectors and address specific market needs. This approach aims to de-risk private investment, stimulate innovation, and ensure capital reaches promising companies across the country.

A notable direct intervention was the Future Fund, launched in response to the COVID-19 pandemic. This program provided convertible loans to innovative UK companies facing funding challenges, deploying a substantial £1.14 billion to 1,190 businesses before its closure. Building on this experience, the government introduced Future Fund: Breakthrough, a £375 million program designed to co-invest alongside private capital into highly innovative, R&D-intensive companies. This successor fund targets later-stage deep tech and life sciences firms, with typical investments ranging from £20 million to £100 million per company, reflecting a commitment to scaling ambitious ventures.

Beyond these national initiatives, the UK government supports regional economic development through various investment funds, often managed by local fund managers but capitalized by the BBB. Examples include the Northern Powerhouse Investment Fund (NPIF) and the Midlands Engine Investment Fund (MEIF). These funds provide a range of finance options, including equity investments that can start from as little as £50,000, catering to earlier-stage businesses and ensuring access to capital outside of traditional London-centric hubs. Through this diverse portfolio of programs, the UK government acts as a crucial enabler, bridging funding gaps and fostering a dynamic environment for high-growth enterprises.

Investor Profile

UK government has backed more than 50 startups, with 8 new investments in the last 12 months alone. The firm has led 43 rounds, about 86% of its total and boasts 3 exits across its portfolio.

Investment Focus Highlights

  • Concentrates on Grant, Series A, Series D rounds (top funding stages).
  • Majority of deals are located in United Kingdom, United States, Canada.
  • Strong thematic focus on Education, Higher Education, Renewable Energy.
  • Led 6 rounds in the past year.
  • Typical check size: $50K – $100M.

Stage Focus

  • Grant (94%)
  • Series A (2%)
  • Series D (2%)
  • Seed (2%)

Country Focus

  • United Kingdom (86%)
  • United States (6%)
  • Canada (2%)
  • Germany (2%)
  • Ghana (2%)
  • India (2%)

Industry Focus

  • Education
  • Higher Education
  • Renewable Energy
  • Cleantech
  • Manufacturing
  • Universities
  • Energy
  • Clean Energy
  • Sustainability
  • Information Technology
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FAQ

Frequently Asked Questions

Learn who this investor regularly partners with—both firms and angels—and explore their latest activity.

Who does UK government frequently co-invest with?

BlueYard Capital
Europe, Berlin, Germany, Berlin
Co-Investments: 1
Eos
Europe, Fife, United Kingdom, Saint Andrews
Co-Investments: 1
Alix Ventures
North America, California, United States, San Francisco
Co-Investments: 1
Possible Ventures
Europe, Bayern, Germany, Munich
Co-Investments: 1
Innovate UK
Europe, Wiltshire, United Kingdom, Swindon
Co-Investments: 1
Rocketship.vc
North America, California, United States, Los Altos
Co-Investments: 1
Horizons Ventures
Asia, Hong Kong Island, Hong Kong, Hong Kong
Co-Investments: 1
Government of Canada
North America, Quebec, Canada, Gatineau
Co-Investments: 1
Scottish Government
Europe, Edinburgh, City of, United Kingdom, Edinburgh
Co-Investments: 1
TC
North America, New York, United States, New York
Co-Investments: 1

Which angels does UK government often collaborate with?

SA
North America, California, United States, San Francisco
Shared Deals: 1

What are some of recent deals done by UK government?

LanzaTech

Skokie, Illinois, United States

LanzaTech is a carbon recycling company that converts waste carbon into sustainable fuels, chemicals, and materials.

Carbon CaptureClean EnergyCleanTechNatural ResourcesRecyclingSustainability
GrantJul 22, 2025
Amount Raised: $8,623,292
Sizewell C

Leiston, Suffolk, United Kingdom

Doing the power of good for Britain

UndisclosedJul 22, 2025
Amount Raised: $336,847,325
Ionic Technologies

Belfast, Belfast, United Kingdom

Ionic Technologies recycles permanent magnets to recover magnet rare earths.

Recycling
GrantJul 14, 2025
Amount Raised: $11,000,000
Cranfield University

Bedford, Bedfordshire, United Kingdom

Cranfield University is a postgraduate university that is a global leader for education and transformational research in technology

EdTechEducationHigher Education
GrantJun 17, 2025
Coventry College

Coventry, Coventry, United Kingdom

Coventry College is an education management company. It provides exceptional education, skills, and training to meet the needs.

EducationHigher EducationTraining
GrantApr 9, 2025
Amount Raised: $1,729,918
Epoch Biodesign

London, England, United Kingdom

Epoch develops natural solutions to unnatural problems. First up: enzymes that transform plastics into circular chemicals.

Biotechnology
GrantMar 5, 2025
Amount Raised: $1,000,000
AUDITSU

Leeds, Leeds, United Kingdom

A data-driven accessibility risk intelligence platform that lets businesses instantly assess and address accessibility failures at scale.

Artificial Intelligence (AI)Data Collection and LabelingEnterprise SoftwareSaaS
SeedFeb 26, 2025
Orbex Space

Forres, Moray, United Kingdom

Orbex is a space company that offers orbital launch services specifically designed for small satellites, with a focus on reusability.

AerospaceAutonomous VehiclesSatellite CommunicationSpace Travel
Series DJan 29, 2025
Amount Raised: $28,639,844
Smart Green Shipping

Devizes, Wiltshire, United Kingdom

Smart Green Shipping develops technical, commercially viable, digitally enabled wind-powered solutions.

Marine Transportation
GrantOct 22, 2024
Kofa

Accra, Greater Accra, Ghana

Kofa is an automotive company that utilizes the latest electric battery and motor technology.

CleanTechElectric VehicleSmart Cities
GrantSep 17, 2024
Amount Raised: $4,937,719