The mayor’s office says the fund is expected to help over 150 small businesses over the next three years, creating up to 2,600 new jobs.
The £85 million pot will recieve £25 million from the mayor’s office through its ‘Growing Places Fund’, as well as up to £60 million from the private sector.
The fund is intended to support small companies in the fields of science, technology and digital that are stuggling to find investment. It’s anticipated that companies backed by the fund will be looking to raise between £250,000 and £1 million.
Applications to the fund opened Thursday. The mayor’s office said that successful applicants will need to be able to demonstrate the ability to create jobs and generate a 10-fold return on their investment.
London’s tech scene has received strong government backing, with Prime Minister David Cameron having got behind the capital’s Tech City hub. There have also been attempts by the mayor’s office to attract inward investment, with mayor Boris Johnson having launched a £100 million fund to attract Middle Eastern companies to the capital.
“London’s tech sector is flourishing and the city is a hotbed of talented young and ambitious people buzzing with exciting ideas who are setting up new companies in their droves,” Boris commented.
“Despite this boom, we know that many budding start-ups find it difficult to raise the finance they need to grow. This new fund will ensure the tech-giants of the future can get the support they need to bring their ideas to reality and deliver jobs and growth for the capital.”
The private partners involved with the fund are Wellington Partners, Playfair Capital, London Business Angels, Angel Lab, Firestartr and Crowdcube/ Braveheart Consortium.