Data Science Investment Counter —Funding raised by UK data science companies in 2018.
£ 5.640 Million

Britain VC Firms Could Lose a Major Source of Funds after Brexit

Brexit might jeopardise British venture capitalists’ access to a European fund which funnels billions into the industry.

According to Business Insider, the European Investment Fund (EIF) has put on hold its contributions to several  VC firms, including Seedcamp, Dawn Capital, Hoxton Ventures and Episode 1 Ventures, which are now on the lookout for new sources of funding.

The websites implies that the EIF’s unusual rejection of several funding applications from British firms is linked to Britain’s shock decision to leave the European Union following a referendum in June 2016.

Episode 1 Venture, which had applied for funding before the referendum, eventually got its request rejected just after the UK government formally started the process to leave the EU in March.

The firm’s managing partner Simon Murdoch told Business Insider: “Until Theresa May said that we would trigger Article 50, in all that time, the EIF engaged with us in a fair and diligent way. Then after meeting them in January, they just went silent. Then we triggered Article 50 and the EIF [said] it wasn’t going ahead with us.”

 

The EIF itself denied being in the process of disengaging from the UK, while underlining that there is a “wider range of  factors” it has now to take into account when assessing UK projects.

Yet, some sources said the fund is only going to uphold commitments officially taken before the Brexit vote, while mothballing any further involvement  for the time being— including a previously planned £43 million fund for British angels.

The EIF is a mainstay of the UK’s tech investment environment: between 2011 and 2015, the organisation injected £1.9 billion into 144 VC firms, according to internal figures.

 

 

Image via bit.ly/2qHEDrI

SHARE THIS ARTICLE:
BY SHACK15

Co-working space and blog dedicated to all things data science.

Subscribe to our newsletter