Lyle's journey began with a personal connection to entrepreneurship, having launched and run his own businesses, including an award winning children's nursery and a TripAdvisor  top-ranked Pizza restaurant. This experience gave him a deep understanding of the challenges and isolation founders face, a perspective he brings to his role. As he puts it, "It’s probably the toughest, loneliest job in the world."

A proven blueprint

The inspiration for the fund came from Lyle’s experience on the advisory committee of the successful London Co-Investment Fund. He saw how a similar model could support the West Midlands. In 2019, he pitched the idea to West Midlands Mayor at the time, Andy Street, arguing that a fund would not only provide much-needed capital but also foster a more collaborative and less siloed ecosystem.

The result was a £25 million fund – with £12.5 million coming from the West Midlands Combined Authority and an equal amount from the West Midlands Pension Fund – to invest in early stage scaleups in the WMCA region. While pension funds typically invest in established, large-scale ventures, this was a bold move into early-stage, regional investment, an innovation for which the pension fund received an award. The fund’s foresight in using pension capital also pre-empted recent national initiatives like the NatWest Cushion and Mansion House Accords, positioning the West Midlands as a leader in this space. Once Future Planet Capital Regional (formerly known as Midven) won the tender to manage the fund, they asked Lyle to join the firm as an Investment Director and lead the initiative as its principal. Since its launch in 2023, the fund has already made 12 investments, with a striking 50% going to female-founded or female-led businesses.

Beyond the check: the co-investment advantage

The West Midlands Co-Investment Fund's model is not about writing big checks alone. Its core principle is to co-invest, requiring companies to secure a private co-investor or investor syndicate. While some founders might see this as a hurdle, Lyle argues it’s a powerful advantage.

"Lots of founders come to us and think that raising equity investment  is the biggest event they will ever face," Lyle says. "In reality it’s just one of many life changing events a business will face."

Instead of simply providing capital, the fund helps founders build a syndicate of value added investors. This brings in individuals, corporate venture arms, sector specific VCs, or even suppliers who can offer more than just money. They provide a network of contacts, operational support, and can open doors to new markets and customers. This collaborative approach increases a startup’s chances of survival and helps them grow far beyond what a single investment could achieve.

Lyle's perspective on founders is grounded in empathy.  Investors should recognise that every founder has a different skillset – both emotional and business – and should therefore adapt their investment approach accordingly.

Some founders are driven by passion and purpose. Others are driven by financial rewards and status. Some are salesmen. Others are technical. But founders should also realise that when they start a business they don't know what they don't know. And what they don't know is a lot. There is no playbook. You adapt to circumstances as they arise. So just having a deck and a financial model doesn't make you an interesting investment proposition or even investment ready. There is so much more to it than that.

Ultimately, the West Midlands Co-Investment Fund is a testament to the power of a strategic, collaborative approach to funding. It’s not just an innovative use of capital; it’s a model designed to build resilient, successful businesses and strengthen the entire regional ecosystem. The fund, which is active until 2028, continues to be a crucial part of the region's growth story.