British Business Bank Investments Ltd, the commercial arm of the British Business Bank, has increased its commitment in BOOST&Co’s Industrial Lending 1 fund by £20m as part of an additional £40m extension to the fund.
BOOST&Co’s Industrial Lending 1 fund provides venture debt loans of between £2m and £8m to innovative, fast growing companies looking to scale-up. These loans are available to early stage technology startups which have an established business model and can support their rapid growth prospects. To date, the fund has made total commitments of £100m, with investments in 33 UK based SMEs. The additional investment announced today means that it will make up to £100m of further commitments to SMEs.
Previous recipients from BOOST&CO’s funding have spanned a range of technology companies, including Software as a Service (SaaS) for improving customer experience, data analytics, and smart digital tools for website bookings.
British Business Bank Investment Ltd’s Investment Programme, which is providing the additional funding, has so far committed over £580m to providers of finance to UK smaller businesses. The programme helps to widen the choice of funding SMEs can find on the market.
Lance Mysyrowicz, Partner at BOOST&Co commented on the increased investment: “We are delighted to receive continued support from British Business Bank Investment Ltd. We look forward to deploying the additional capital in innovative, growing UK SMEs with a passion for technology, and are excited about this next phase in our relationship.”
Catherine Lewis La Torre, CEO, British Business Bank Investments Ltd, added: “This £20m extension to BOOST&Co is a further demonstration of our commitment to promoting greater choice in the supply of lending to smaller businesses. Venture debt finance is an important option for innovative businesses that want to grow rapidly, as a form of capital that can help them scale-up without having to relinquish control of the business. We are pleased to support BOOST&Co as they expand the level of this type of funding they can provide to the market.”