Triple Point has launched an initiative to help new start-ups, in recognition of the role innovation and technology will play in the UK’s economic recovery.
Triple Point’s investment initiative, called Kick Start, is designed to target the very early stage businesses that have yet to raise funding. It will be led by the firm’s VC funds team and invest ticket sizes of between GBP100-GBP150,000 in companies with pre-money valuations of between GBP1 million-GBP1.5 million, usually as the first external money into the startup.
The money is meant to be allocated to the UK’s most innovative start-ups. “High growth companies will be critical in driving the UK’s economic recovery, and early stage start-ups are the most exciting, innovative and dynamic companies in the country,” said Ian McLennan, partner at Triple Point.
The Government recently announced a range of measures to support growth businesses including the GBP500 million Future Fund, which is focused on early stage companies. To qualify for investment from the Future Fund businesses need to have raised at least GBP250,000 in private investment in the last five years however, which leaves many of the earliest stage start-ups struggling to access that funding.
McLennan commented: “Now is an opportune moment for investors to support compelling new investment opportunities, ensuring the best new start-ups have access to the vital early stage funding they need. Ensuring those start-ups have access to funding is fundamental to them playing a full role in our economic and business revival.”
According to research from innovation centre Plexal and data provider Beauhurst, start-ups raised GBP 663 million in investment during the first month of lockdown. However, deal flow was down 39 percent year-on-year and of the total amount raised only GBP50.2 million went to start-ups that had never raised capital before.
Founded in 2004, Triple Point manages over GBP1.5 billion of private, institutional and public capital and has invested in more than 130 early stage companies so far.