Government’s Welcome as London Co-Investment Fund to use Crowdfunding and Syndicates
- With new investments targeted at technology firms, the government backed London Co-Investment Fund turns to crowdfunding and syndicate investing for allocation of its funds.
The London Co-Investment Fund (LCIF) has announced a new venture capital fund to invest in London-based technology startups. Created by Funding London and Capital Enterprise, LCIF is a government-backed fund with 25 million pounds being contributed by the City of London and up to another 60 million pounds from private sector partners. In addition to providing additional funding, the private sector partners are also tasked with finding and reviewing technology startups for investment.
Among the six, and getting the largest investment pool of five million pounds to allocate, is a joint partnership of equity Crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term platform Crowdcube and asset management firm Braveheart Investment Group. Under the plan, the two firms will be investing funds in companies selling equity using the Crowdcube platform, with Braveheart conducting due diligence to spot suitable firms to fund.
The involvement of Crowdcube with the LCIF represents the first time a UK government entity is using a crowdfunding platform for allocation of investable funds. The UK has been one of the more accommodating jurisdictions around the world for promoting the use of equity crowdfunding. Therefore, the partnership with Crowdcube shows that the UK government isn’t only backing new financial technology but using it themselves.
Commenting about being selected in his company’s blog, co-founder of Crowdcube Luke Lang stated, “For the UK Government to invest in London’s top start-ups through Crowdcube, alongside the crowd, is an exciting prospect and underlines Crowdcube’s reputation as an effective way for high growth tech firms to raise finance.”
In addition to crowdfunding being utilized through Crowdcube, the LCIF has partnered with an angel investing consortium for syndicate funding. Combining resources of London Business Angels, Angel Lab and Firestartr, the three firms will be introducing potential technology investments for syndicate investing to their angel members.
A recent phenomena, syndicates have become an important part of the startup funding ecosystem, as combined funds from angels are often able to reach larger sums, thus competing with traditional venture funds. In addition, besides the monetary benefits, startups are seeing advantages with syndicates as it promotes the company and provides a wider shareholder base to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term for contacts.
The London Co-Investment Fund (LCIF) has announced a new venture capital fund to invest in London-based technology startups. Created by Funding London and Capital Enterprise, LCIF is a government-backed fund with 25 million pounds being contributed by the City of London and up to another 60 million pounds from private sector partners. In addition to providing additional funding, the private sector partners are also tasked with finding and reviewing technology startups for investment.
Among the six, and getting the largest investment pool of five million pounds to allocate, is a joint partnership of equity Crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term platform Crowdcube and asset management firm Braveheart Investment Group. Under the plan, the two firms will be investing funds in companies selling equity using the Crowdcube platform, with Braveheart conducting due diligence to spot suitable firms to fund.
The involvement of Crowdcube with the LCIF represents the first time a UK government entity is using a crowdfunding platform for allocation of investable funds. The UK has been one of the more accommodating jurisdictions around the world for promoting the use of equity crowdfunding. Therefore, the partnership with Crowdcube shows that the UK government isn’t only backing new financial technology but using it themselves.
Commenting about being selected in his company’s blog, co-founder of Crowdcube Luke Lang stated, “For the UK Government to invest in London’s top start-ups through Crowdcube, alongside the crowd, is an exciting prospect and underlines Crowdcube’s reputation as an effective way for high growth tech firms to raise finance.”
In addition to crowdfunding being utilized through Crowdcube, the LCIF has partnered with an angel investing consortium for syndicate funding. Combining resources of London Business Angels, Angel Lab and Firestartr, the three firms will be introducing potential technology investments for syndicate investing to their angel members.
A recent phenomena, syndicates have become an important part of the startup funding ecosystem, as combined funds from angels are often able to reach larger sums, thus competing with traditional venture funds. In addition, besides the monetary benefits, startups are seeing advantages with syndicates as it promotes the company and provides a wider shareholder base to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term for contacts.