The London Co-Investment Fund (LCIF) is an £85m fund set up by the LEP to address current SME finance gaps. The scheme, delivered by Funding London and Capital Enterprise, will leverage equity funding into early stage growth firms as they emerge from private accelerators, incubators and support programmes.
LCIF will co-invest in seed rounds between £250,000-£1m that are led by one of the chosen co-investment partners. The decision on who to invest in, and on what terms, lies solely with the LCIF partners. For every £1 LCIF invests, the partners are obliged to directly invest (or secure from their investors) at least £1, and on average £2.9, in the selected business's seed investment round.
The aim of the Fund
The stated aim of LCIF is not to fund London tech businesses that otherwise would not get funded, but rather to enable those who can raise funds to raise significantly more so that they have a sufficient money, time and resources to prove their business model. This way London-based tech startups will be better able to raise their next round of funding and thereafter become the great tech companies that London so wants and requires.
Who can apply
Startups eligible to apply must fulfill the following criteria:
- Provide a product or service within science, technology or the digital sectors
- Fundraise between £250,000 - £1m
- Have a London based office
How to apply
LCIF partners are contractually obliged to work with Capital Enterprise and Capital List to source and prepare good-quality eligible tech businesses for investment. Businesses can apply through Capital List and are guaranteed to be assessed, advised and, if they are suitable, be introduced to LCIF’s co-investment partners.
The London Co-Investment Fund was launched by LEP Members Stephen Howard and Kit Malthouse on the 4th December at City Hall. LCIF six co-investment partners has been selected based on their track records of investing and supporting early stage tech businesses in London.
John Spindler, the CEO of Capital Enterprise, is the Chairman of the LCIF Investment Committee. In 2013 Capital Enterprise founded Capital List, an online platform and an offline service that bridges the gaps between startups and investors.