London Co-Investment Fund
Part funded through the Growing Places Fund, the London Co-Investment Fund (LCIF) is an £85m fund, with a £25m investment from LEAP, set up to address SME financing gaps, estimated at £2bn, to support economic growth across the capital. The scheme, delivered by Funding London and Capital Enterprise, leverages equity funding into early stage growth tech SMEs as they emerge from private accelerators, incubators and support programmes. LCIF co-invests £250k to £1m in seed rounds that are led by one of the chosen co-investment partners; the decision on who to invest in, and on what terms, lays solely with the LCIF partners.
LCIF enables SMEs that have raised small amounts of funding to raise significantly more, ensuring that they have sufficient resources to prove their business model – and in turn become the great tech companies that London requires.
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.