British Business Investments, the commercial arm of the British Business Bank, has announced a commitment of £20m to Kindred Capital’s first seed fund, which has closed at £80m.
Launched in 2015, equitable venture firm Kindred Capital offers seed-stage entrepreneurs the opportunity to co-own the fund that invested in their business. After money has been returned to investors, 20% of the fund’s profits is shared out among founders.
This means all Kindred-backed founders are aligned with each other, economically incentivised to nurture and grow each other’s companies and the Kindred Capital ecosystem.
Catherine Lewis La Torre, Chief Executive of British Business Investments said:
“As the commercial arm of the British Business Bank, we support financial innovation and diversity in debt and equity markets. Kindred’s innovative fund model provides just that and we’re delighted to support their first seed fund.”
“Our investment in this new vehicle means that more start-ups will be able to access the equity funding they need to grow and succeed.”
This commitment supports British Business Investments’ objective to support innovation in small business finance. The announcement will also help to improve the diversity of funds available to UK smaller businesses, especially outside of London, who are looking to grow. This new fund will provide equity finance, vital for scaling up, to UK smaller businesses looking to grow.
James Pignon, MHP Communications, +44 20 3128 8100, firstname.lastname@example.org
Scott Shearer, British Business Bank, Scott.Shearer@british-business-bank.co.uk
About British Business Investments: British Business Investments is the trading name of British Business Investments Ltd, the commercial arm of the British Business Bank. It aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any advantage from the government. Find out more at www.bbinv.co.uk.
British Business Investments Ltd is a wholly owned subsidiary of British Business Bank plc, the UK government’s economic development bank. Neither entity is authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).
British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.