The Mayor of London has invested £2.5m in start ups since the EU Referendum from his Co-Investment fund.
The London Co-investment Fund – the Mayor of London’s early stage business fund – uses public-private venture capital for pump-priming investment in some of London’s most innovative science, digital and technology start-ups.
In June 2016 alone, the Fund invested more than £1 million in a range of start-ups despite a downturn in investment across much of the economy – further proof, says the Mayor, that London is open for business.
The Mayor of London, Sadiq Khan, said: “I have promised to be most pro-business Mayor that London has ever had – and now I’m delivering on that promise. And our great city is fertile ground for promising start-up business from a whole range of sectors. The level of investment being made and the performance powering forward shows very clearly how London is open to new talent and innovative ideas.”
The London Co-investment Fund is funded by the Mayor of London through the London Local Enterprise Partnership and is managed by Funding London on their behalf. Over its two-year history, it has invested more than £11 million in 67 businesses – from artificial intelligence to energy – and has leveraged nearly £70 million in investment from the private sector, creating more than 450 jobs and safeguarding nearly 200 more in the process.
Founder of smart energy company Powervault, Joe Warren, said: “Powervault has received tremendous support from the London Co-Investment Fund. The additional investment of £80,000 in July this year helped catalyse a further £1.4m from other institutional, angel and crowd investors.
”The Fund’s support has led to the creation of eight skilled jobs in London’s smart energy sector. City Hall has also helped by making relevant introductions and by responding to consultations with us, helping us to shape policy in the sector.”
The Fund supports companies which are using technology to improve lives and tackle significant challenges. For example, MoM Incubators – which makes inexpensive, inflatable incubators designed to cut infant mortality, and Pivigo – an online hub which connects businesses with data scientists and has already worked with KPMG, Marks & Spencer, British Gas, Barclays and Investec.
City Hall maintains an equity stake in these companies and provides legal, procurement, supply chain and marketing support. This enables them to grow and, in so doing, generate new jobs.