Around the World in TBED: UK Startups to Receive Infusion of Funding, New Commercialization Effort Announced

While the first quarter of 2016 was slow for venture capital investments in the United Kingdom (UK), recent weeks have seen significant new developments in both financing and converting technologies from six UK universities into the marketplace.  The goal of these new funding initiatives is, in part, to improve the survival rate of small- and medium-sized businesses (only 45 percent of all UK startups survive beyond the first five years).

The UK announced £180 million (260.8 million USD) in funding focused on clean energy activities in the Midlands region of the country. The UK Department of Treasury will commit £60 million (86.9 million USD) of public money to unlock an additional £120 million (173.9 million USD) in private sector co-investment from both national and international companies. The funding will help support commercialization efforts that transition energy technologies from the region’s six major universities (Aston University, the University of Birmingham, Leicester University, Loughborough University, the University of Nottingham and the University of Warwick) through a newly formed public-private partnership with industry – the global center of excellence for energy research and innovation.

Activities are intended to bring together the Midlands innovation-focused universities with the region’s industrial base to tackle some of the biggest energy challenges facing the UK. They also are intended to help create well-paying jobs through startup creation.

HSBC Bank, the UK-based banking and financial services organization, will commit up to £10 billion (14.5 billion USD) in financing for small- and medium-sized businesses (SMEs). HSBC said the fund is designed to meet strong demand from UK SMEs and follows a £8 commitment (11.6 billion USD) in 2015, according to the startupdonut.co.uk.

Three global crowdfunding sites (Seedrs, Crowdcube and SyndicateRoom) announced the creation of a £100 million (145 million USD) fund to help UK startups access financing to scale their business, according to startups.co.uk. The Race to Scale initiative will be a combination of debt and equity funding to plug the estimated £1 billion (1.45 billion USD) funding gap faced by UK SMEs every year. UK startups are eligible for an investment or loan between £100,000 (144,800 USD) and £5 million (7.2 million USD).