Judith Hartley, CEO of British Patient Capital, comments on the lack of UK institutional fund flow to venture capital.
Scale Up Week is a reminder that the UK has a deep pool of talent and a high number of innovative start-ups, many of which have subsequently grown to become leading businesses. Venture Capital funding can be crucial for these innovative high growth companies, to enable them to grow and fulfil their potential.
While we have seen a significant increase in capital flowing towards UK venture and venture growth funds, this has been mainly from institutional investors in the US and Canada. UK pension fund investment into this sector continues to lag far behind, meaning UK savers are missing out on the financial returns available from the UK’s tech successes.
At British Patient Capital, we work with best in class fund managers, to provide funding to the UK’s most promising and innovative growth stage companies. Some of these companies have become household names such as Revolut and Cazoo. Others are driving innovation across a diverse range of areas, for example, the discovery of new medicines, to the development of clean transport and cybersecurity. As the UK’s tech markets continue to mature, the venture capital sector offers a significant investment opportunity. This is especially so at the venture growth (series B+) stage, when companies are typically expanding internationally or gaining significant market traction or deepening R&D spend. By putting capital in to these venture growth funds, institutional investors can gain exposure to these innovative high growth companies and capture value as they rapidly scale.