Phoenix Court partners with British Business Bank and NatWest to support science and technology startups
Phoenix Court has announced new long‑term partnerships with the British Business Bank and NatWest as part of its Britain Backing Britain event, securing fresh domestic capital to support fast‑growing UK science and technology companies from seed stage through to scale‑up. The investment firm, home to the LocalGlobe, Latitude, Solar and Basecamp funds, also confirmed continued backing from M&G and HSBC.
Dealroom ranks Phoenix Court as the top investor in EMEA, and among the top 0.01% globally, for backing seed‑stage companies that go on to generate more than $100m in annual revenue.
Despite being the world’s third‑largest innovation economy, the UK still relies heavily on overseas capital to scale its most successful companies. Phoenix Court’s analysis identifies around 1,800 venture‑backed UK businesses generating more than £20m in annual revenue, yet fewer than 1% have received investment from major domestic asset managers involved in the Mansion House initiative.
The British Business Bank’s commitment forms part of a multi‑hundred‑million‑pound investment into Phoenix Court’s funds, aimed at providing patient capital to help UK companies grow into global businesses, while ensuring British institutions and savers benefit from the value created.
NatWest is investing in Phoenix Court’s LocalGlobe, Latitude and Solar funds for the first time, expanding its support for the UK innovation ecosystem through its innovation banking arm.
M&G is increasing its involvement following the success of its £50m investment in Phoenix Court’s Solar pilot fund, a three‑year proof‑of‑concept initiative focused on scale‑up capital. Solar’s portfolio spans AI, automotive, energy, financial services, advanced computing, robotics, semiconductors and travel, backing companies including Tide, Motorway, Monzo, Raspberry Pi and CuspAI. Together, these businesses generate £5bn in annual revenue and support more than 8,500 high‑value jobs across the UK, with 14 of the 18 companies surpassing £100m in annual revenue.
HSBC has also committed capital across Phoenix Court’s funds. Through HSBC Asset Management and HSBC Innovation Banking, Phoenix Court and its portfolio companies gain access to the bank’s domestic and international capabilities.
Phoenix Court says combining the scale and institutional capital of the British Business Bank, HSBC, M&G and NatWest with its own multi‑stage investment expertise will help keep more companies, jobs and investment returns in the UK.
Saul Klein, Co‑Founder and Chair of Phoenix Court, said the UK’s innovation economy is strong but underserved by domestic capital. “Britain has built the world’s third‑largest innovation economy, but too many companies still lack the domestic capital to scale here,” he said. “Our Solar pilot proved the opportunity is real: its 18 companies generate £5bn in annual revenue and have created more than 8,500 jobs in the UK alone. This meaningful partnership with British financial institutions will help us back more exceptional companies from seed to scale, keeping more of the jobs, prosperity and returns they create in Britain.”
Leandros Kalisperas, Chief Investment Officer at the British Business Bank, said increasing the flow of long‑term domestic capital could be transformative. “The UK already produces some of the best companies in the world, but increasing the flow of domestic long‑term capital will allow companies to grow faster, keeping jobs and growth here rather than trickling overseas.”
Alex Seddon, Head of Private Equity at M&G Investments, said the partnership reflects a shared ambition to connect institutional capital with high‑growth UK companies. “That is good for founders, good for the economy and good for UK investors, who should be able to share more directly in the value created by British innovation.”
NatWest Group CEO Paul Thwaite said Britain must improve its ability to back its most promising companies at home. “Too often, promising British businesses look overseas for the capital and support they need to reach the next stage,” he said. “Our investment in Phoenix Court’s platform is a good example of how NatWest can use its scale, capital and convening power to strengthen the UK’s innovation ecosystem and help exceptional companies start, scale and stay here in the UK.”
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