A New £2.5 Billion Pot of Cash Administered by the British Business Bank to Help Start-Ups Scale UpJune 08, 2018
The wait is almost over: a new £2.5 billion pot of money which from this month will be administered by the British Business Bank to small businesses struggling to scale up is aptly named.
This “patient capital” will use government funds to attract twice as much long-term private-sector money to fill what investment professionals call gaps in the funding ladder. In the UK, that is those firms looking to raise between £5 million and £25 million whose founders might otherwise sell out and start again instead of nurturing the next Google to global domination.
Looking around the world, not much of this is new. Another prong of the scheme takes its lead from the Small Business Investment Company debenture programme in the US — which began in 1958 — and the Yozma initiative in Israel, launched in 1993 and one explanation for so many high-tech firms having emerged from there.
So is this cash worth being patient for? Definitely. The vintage of companies in the FTSE 100 tells the tale.