By Aisling Finn on Thursday 4 June 2020
Out of the 46 companies invested in the last round, 26 of those were UK-based technology startups.
British Business Investments, a subsidiary of the British Business Bank, has today committed up to £40m to London-based growth debt fund Columbia Lake Partners (CLP).
The cash forms part of the firm’s second fund and will be used to provide growth capital term loans between £3m to 10m to venture capital-backed technology businesses.
CLP can invest as part of an equity round, between equity rounds to allow a company more time to build enterprise value or to fund an acquisition.
Craig Netterfield, a managing partner at Columbia Lake Partners, said: “As a less-dilutive complement to equity funding our capital gives companies the extra cash runway they need to reach certain milestones.”
“In the current economic climate, our capital can be particularly valuable. Companies typically don’t want to be fundraising when there is uncertainty in the market, and we are providing founders and companies with enough cash runway to weather this period and build further value in the business,” he added.
Under the last fund, CLP invested in 26 UK-based technology startups and 20 more across Europe, including API content management platform Amplience and influencer-based marketplace Pollen.
Catherine Lewis La Torre, CEO of British Business Investments, said: “The availability and use of venture debt is another indicator of the increasing maturity of our technology ecosystem.”
“Columbia Lake’s latest fund will provide UK technology companies with an alternative and flexible source of capital at a time when periods between equity funding rounds are likely to be significantly extended as a result of the Covid19 crisis.”
The fund, which has already made four investments, is hoping to invest in a wide range of tech companies across a variety of sectors including, fintech, software infrastructure and software-as-a-service companies (SaaS).