Oct 18, 2018
The London Co-investment Partnership aims to maximise investments in emerging tech SMEs.
Raising funds for an SME isn’t just a headache; it can also be a serious distraction for enterprises that are already working all hours to prove their business model – particularly in the earliest stages of starting up.
Making the jump from an incubator or accelerator programme into a self-sustaining enterprise is a massive undertaking. Far too many small businesses end up falling into a finance gap, from which they often struggle to emerge.
It’s gaps like this which the London Co-Investment Fund aims to plug. Set up by the Local Enterprise Partnership, and delivered by Funding London and Capital Enterprise, the LCIF is an £85million fund for SMEs. With a focus on businesses that have proven that they can secure funding, it aims to provide an additional financial buffer on top, giving businesses more space and time to prove their concepts, and thereby giving them a much greater chance at success.
How does it work?
As the name suggests, LCIF works by co-investing in seed rounds led by one of their partners. The partners decide upon projects to invest in and set the terms, and the LCIF matches their capital pound for pound.
Who is eligible?
The fund is predominantly aimed at tech firms, and aims to help London fulfil its ambition to become one of the greatest tech hubs of the world. To be eligible, businesses must:
- Provide a product or a service within the technology, science, or digital sectors.
- Have raised funds of between £250,000 and £1million.
- Have offices based in London.
If you meet these criteria and would like to apply to the LCIF, you can do so here.