LCIF boosts 20 startups with $3m
Posted on 13 December, 2016 by Nicole Idar Lee, reporter
London Co-Investment Fund, backed by $32m in public funding, has continued to support local startups since Britain’s June 23 vote to leave the EU.
London Co-Investment Fund (LCIF), a vehicle backed by the city's mayor, has injected £2.5m ($3.2m) into 20 startups since Britain’s June 23 European Union referendum, Business Quarter reported yesterday.
Launched in 2014, LCIF secured an initial £25m from the mayor of London’s £730m Growing Places Fund – which supports infrastructure projects intended to bolster economic growth, create jobs and build houses in England – to invest in tech, science and digital startups in the English capital.
LCIF co-invests in seed rounds sized at between £250,000 to £1m and is managed by Funding London, an independent company and holding fund for investing in small and medium-sized businesses, and Capital Enterprise, a nonprofit that supports London entrepreneurs.
The fund put more than £1m to work in various startups in June alone, at a time when uncertainties over the Brexit referendum were weighing on the pace of investment in London’s economy.
LCIF has poured more than £11m into 67 businesses since it was launched two years ago, triggering close to £70m in private sector investment and creating more than 450 jobs along the way.
Portfolio companies include smart energy provider Powervault, which makes a home energy device to store solar power collected during the day and release it at night when demand for electricity surges. Powervault secured £200,000 from LCIF in June 2015 and received an additional £80,000 from the fund in July 2016, a boost that helped the company leverage a further £1.4m from other investors.
Sadiq Khan, mayor of London, said: “I have promised to be most pro-business mayor that London has ever had – and now I am delivering on that promise. The level of investment being made and the performance powering forward shows very clearly how London is open to new talent and innovative ideas.”
– Image courtesy of US Embassy London (source)
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