British Business Bank has made a £45m cornerstone commitment to a fund from Redrice Ventures targeting £75m.
Founded in 2018, Redrice Ventures specialises in seed-stage investments generally targeting “purpose-driven consumer brands” and related B2B technology.
The London-based VC firm has set a goal of backing the UK’s creative sectors through its investments. Redrice said that by backing the startups in its portfolio, it can create a knock-on effect to bolster creative jobs, driving demand for design, advertising and content.
“Creativity sits at the heart of every great consumer brand, and the UK has one of the deepest pools of experienced creative talent anywhere in the world,” said Tom March, founder and partner of Redrice Ventures.
“Pair that with rapid advances in technology and real technical expertise, and the UK is perfectly positioned to launch the next generation of globally ambitious brands.”
The British Business Bank’s commitment was made as part of the bank’s Enterprise Capital Funds programme, which aims to increase the supply of equity capital to early-stage UK companies with long-term growth potential and low barriers to entry for fund managers operating in the VC market.
“The creative industries are central to the UK’s growth mission, employing 2.4 million people and contributing £124bn of Gross Value Added to the economy,” said Christine Hockley, managing director and co-head of funds at British Business Bank.
“As a cornerstone investor we hope to crowd in capital to provide additional finance options for companies looking to scale. This will ultimately create more jobs in an already-thriving sector and support the UK to reach its full commercial potential.”