A new Government-backed fund is set to see $133m invested in around 150 London startups.

The London Co-Investment Fund is supported by a $39m investment from the London Mayor’s office and up to $94m additional investment from six UK investors.

The fund hopes to address the perceived funding gap in London’s tech scene by giving seed-stage businesses much needed investment.

London Mayor’s fund

“London’s tech sector is flourishing and the city is a hotbed of talented young and ambitious people buzzing with exciting ideas who are setting up new companies in their droves,” said Mayor of London Boris Johnson. He added:

This new fund will ensure the tech-giants of the future can get the support they need to bring their ideas to reality and deliver jobs and growth for the capital.

Read more: What the Autumn Statement means for tech

Investments from the fund will range from $390,000 to $1.6m. Private contributions must at least match every Government investment and the target is to achieve almost threefold investment from the private sector for every dollar spent by the Government.

Startups can apply for investment via the London Co-Investment Fund website. Businesses must have a London office.

Boost for crowdfunding

The private investors involved are Crowdcube, London Business Angels, AngelLab, Firestartr, Playfair Capital, and Wellington Partners.

Crowdfunding platform Crowdcube will work with a partner, Braveheart investment Group, to secure the investment.

“For the UK Government to invest in London’s top start-ups through Crowdcube, alongside the crowd, is an exciting prospect and underlines Crowdcube’s reputation as an effective way for high growth tech firms to raise finance,” said Crowdcube cofounder Luke Lang.