Friday, June 21, 2024

UK Ex-Chancellor Lord Hammond appointed to new £1bn fintech fund

Senior industry figures are creating a fund to back the growth of UK fintech companies and prevent founders from selling their shares too early.

According to an original report from Sky News, Lord Hammond is amongst a group of significant figures being recruited to support a new £1bn fund that aims to assist the expansion of the UK’s most promising fintech companies.

Lord Hammond has been selected to serve on the advisory board of the new initiative, which has been provisionally named the ‘Fintech Growth Fund’. Reportedly, the initiative would seek to raise funds from institutional investors and retain independence from the UK government.

Last year, former Worldpay executive, Sir Ron Kalifa published a government-commissioned review on the UK fintech industry. One of the key recommendations of that review provided the idea for the Fintech Growth Fund.

Several companies have reportedly been approached about providing seed funding for the new venture. Notable mentions include Barclays, Mastercard & the London Stock Exchange Group.

Other senior figures in fintech are also expected to play a role in the Fintech Growth Fund. Some of these include Al Lukies, an entrepreneur & government fintech ambassador, and Phil Vidler the CEO of Fintech Alliance.

Reports state that an announcement about the fund’s launch could be expected as early as this autumn.

The fund is expected to invest in companies that are seeking funding beyond their Series B stage. UK companies in this bracket could include the likes of Freetrade & GoCardless.

Last year’s fintech review highlighted a capital gap in the growth area for fintech companies. In his report, Sir Ron stated that a fund could “act as the catalyst in developing a world-leading ecosystem” and added that “With a £2bn fintech growth capital funding gap in the UK, many entrepreneurs prefer to sell rather than continue to build their promising company”

Read more Fintech & Finance news in the Fintech section of our website!

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