Innovative companies invested in by The British Business Bank to raise equity
The British Business Bank has added 108 companies in which the Bank’s Future Fund holds an equity stake, taking the total to 265.
Five companies from across the Midlands have been added to the list;
- Covatic in Birmingham. A digital developer that helps companies shape customers’ experience online without needing to expose personal data.
- Saas Holdings from Cannock. A recruitment technology company to help firms streamline their recruitment process.
- Alcuris in Loughborough. A digital telecare firm that uses data and services to prolong the independence of adults and older people.
- E-Bate from Leicester. A rebate management solution designed to give clear visibility of a firms rebate performance, outstanding payments and an up-to-date view of its financial position.
- Invma in Chesterfield. A tech company that helps businesses in any industry analyse data and monitor assets to achieve maximum productivity and efficiency.
The Future Fund was created to support businesses impacted by the pandemic. It has since issued 1,190 companies with convertible loan agreements worth £1.14bn. Third-party investors were required to at least match the Future Fund’s investment.
It specifically supports companies that typically rely on equity investment to fund growth by using a convertible loan. Unlike an equity investment, there isn’t a requirement to value the company or the price of its shares, which has been beneficial during a time company valuations have been impacted.
The loans are designed to convert into equity at the next equity funding round, converting at a discount to the price per share agreed between companies and investors in the funding round.
265 loans had converted into equity shares by the end of 2021, meaning that the Future Fund holds shares in an additional 108 companies which have successfully raised further private sector capital through an equity funding round since the last update.
Previous businesses in the Midlands that have benefitted from the Future Fund, include: