Didcot-based venture capital firm Longwall Venture Partners has received a significant £50 million investment from the British Business Bank. This funding will bolster Longwall’s newest fund, Longwall 4, aimed at supporting early-stage, science and engineering-led deep tech companies. The investment is part of the British Business Bank’s Enterprise Capital Funds programme, designed to increase the availability of scale-up finance for high-growth businesses.
Key takeaways
- The British Business Bank has committed up to £50 million to Longwall Venture Partners’ new fund.
- The funding targets early-stage, science and engineering-led deep tech companies.
- Longwall Ventures has a track record of investing in over 50 businesses.
- The new fund, Longwall 4, aims to raise a total of £100 million and plans to invest in 14-16 companies.
Fueling innovation in deep tech
Longwall Venture Partners, headquartered in Didcot, specialises in identifying and nurturing nascent companies driven by cutting-edge science and engineering. With a history of backing more than 50 businesses, the firm is well-positioned to leverage this new capital injection. The investment from the British Business Bank, through its Enterprise Capital Funds programme, is crucial for early-stage funds to secure capital, thereby enhancing the availability of finance for rapidly expanding companies.
Mark Sims, managing director and head of development equity funds at the British Business Bank, highlighted the programme’s role in fostering growth. "The Enterprise Capital Funds programme plays a crucial role in helping early-stage funds raise capital with a cornerstone investment, increasing the amount of scale-up finance available for high-growth early-stage companies," he stated. Sims also expressed optimism about the continued partnership, noting its potential to "uncover the next generation of breakthrough technologies and UK success stories," referencing existing successes like OrganOx.
This marks the fourth fund that the British Business Bank has supported in partnership with Longwall Ventures, following previous commitments in 2008, 2012, and 2017.
Bridging the funding gap for deep tech
David Denny, managing partner at Longwall Venture Partners LLP, emphasised the UK’s strong research base as a fertile ground for innovation. "The UK’s strong research base across academia and industry has created a rich seam of opportunities to turn groundbreaking science into valuable businesses," Denny commented. He also pointed out the common challenge these companies face: "but these businesses often struggle to raise long-term capital to support them on their journey to commercialisation."
The Longwall 4 fund has already secured £86.2 million and is targeting a final close of £100 million. The firm intends to deploy this capital by investing between £500,000 and £2 million into approximately 14 to 16 promising deep tech companies. Denny added, "We are excited to find the next crop of deeptech investments for our new fund."
Sources
- British Business Bank to invest in Oxfordshire science fund, This Is Oxfordshire.
- British Business Bank to invest in Oxfordshire science fund, Oxford Mail.
