Natwest has made its initial direct investment into an independently managed venture capital fund, joining other major British financial institutions in an effort to direct more domestic capital towards UK tech companies. The bank is investing in Phoenix Court's Localglobe, Latitude, and Solar funds, which support companies from early funding rounds through to scale-up phases.
This partnership is expected to bring several hundred million pounds of institutional capital onto the platform. The British Business Bank has separately committed £50m, and M&G and HSBC are also backing Phoenix Court’s funds. This initiative follows Natwest's launch of its dedicated Venture Banking business earlier this year.
Paul Thwaite, chief executive of Natwest, stated that for Britain to compete in future industries and jobs, it needs to improve its support for promising companies with capital, connections, and confidence to scale within the UK. He added that banks can contribute to this solution.
The investment by Natwest builds on its expansion into venture banking, which targets founders, venture capital firms, and high-growth businesses with specialist lending and banking services. The UK is the world’s third-largest venture capital market, but over 80 per cent of scale-up funding for its most successful companies reportedly comes from overseas investors.