UK govt group pumps 40m into cloud start-ups
A new investment fund is to pump £40 million into cloud and software-as-a-service companies in the UK. It will use a mix of government and private fundings to target high-growth SMEs with investments of up to £2 million each.
The fund is named 'Notion Capital Fund Two', after the cloud-focused investment company that will operate it, Notion Capital. It is hoped that it will repeat the success of its predecessor, which backed British technology SMEs including cloud services provider Star and e-invoicing service Tradeshift.
The fund's UK activity will fall under the Department for Business, Innovation and SKills' Enterprise Capital Funds programme, which aims to address market weaknesses in the availability equity finance to SMEs by combining government funding and private sector investment. The fund will be the 11th and largest ECF to date, BIS said.
