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The British Business Bank, which works in partnership with other financial institutions to leverage private capital, offers to share the risk of certain losses on a portfolio of new loans made to companies.
The government has faced calls to encourage the publicly owned bank, set up by the Conservative-Liberal Democrat coalition government in 2014, to invest in start-ups and help offset the impact that Brexit will have on funding for the tech sector.
Last year it emerged that the European Investment Fund, a subsidiary of the European Investment Bank that specialises in financing small and medium-sized enterprises, had slashed deals with UK venture capital and private equity groups by more than two-thirds following Britain’s vote to leave the EU.
The UK had previously been the main recipient of EU venture capital funding, which is the single largest source of early-stage capital on the continent. [...]
Full article on Financial Times (subscription required)