Phoenix Court has secured a £50 million commitment from the British Business Bank and first-time investment from NatWest, alongside continued backing from M&G and HSBC, in long-term partnerships announced at its Britain Backing Britain event in London. The commitments span Phoenix Court's platform, which is home to the LocalGlobe, Latitude, Solar and Basecamp funds and invests in British science and technology companies from seed through to scale-up stage.
The British Business Bank's investment forms part of a multi-hundred-million-pound commitment into Phoenix Court's funds, providing patient capital for UK companies to grow into global businesses while giving domestic institutions and their beneficiaries greater exposure to the innovation economy. NatWest is investing into LocalGlobe, Latitude and Solar for the first time, and extending its support to the UK ecosystem through its innovation bank.
Building on a £50 million investment in Phoenix Court's Solar pilot fund, a three-year proof of concept on scale-up capital, M&G is strengthening its commitment across the platform and through further investment into the strategies. These investments sit alongside HSBC, which has committed across the funds as an LP through HSBC Asset Management, with Phoenix Court and its portfolio companies also working with HSBC Innovation Banking to access HSBC's domestic and international capabilities.
The UK is the world's third-largest innovation economy, behind only the US and China, but its most successful companies still raise more than 80% of their scale-up capital from overseas investors. Phoenix Court's analysis has identified 1,800 venture-backed UK businesses generating more than £20 million in annual revenue across the country, of which fewer than 1% have received backing from the major UK asset managers associated with the Mansion House initiative.
Solar's pilot backs 18 high-growth businesses spanning artificial intelligence, automotive, energy, financial services, advanced computing, robotics, semiconductors and travel, including Tide, Motorway, Monzo, Raspberry Pi and CuspAI. Together these companies generate £5 billion in annual revenue, with 14 of the 18 turning over more than £100 million a year, and have created more than 8,500 high-value jobs across the country, including in Brighton, Cambridge, Cardiff, Edinburgh and Manchester. Dealroom ranks Phoenix Court number one in EMEA and in the top 0.01% of investors globally for backing companies at seed stage that go on to generate more than $100 million in annual revenue, and 13th globally for backing high-growth seed-stage companies, the only non-US fund in the global top 15.
Britain has built the world's third-largest innovation economy, but too many companies still lack the domestic capital to scale here. Our Solar pilot proved the opportunity is real: its 18 companies generate £5bn in annual revenue and have created more than 8,500 jobs in the UK alone. This meaningful partnership with British financial institutions will help us back more exceptional companies from seed to scale, keeping more of the jobs, prosperity and returns they create in Britain. Working with these British institutions we can make sure that British savers benefit from our innovation, not just nurses in Denmark, teachers in Ontario and the Singapore metro system.
The opportunity in closing the scale up gap cannot be overstated. The UK already produces some of the best companies in the world, but increasing the flow of domestic long-term capital will be transformative - allowing companies to grow faster, keeping jobs and growth here, as opposed to trickling overseas. As well as making commitments to leading UK fund managers like Phoenix Court, the Bank is working to help institutional investors to access the attractive investment opportunities on their doorstep. It's genuinely encouraging to see the momentum building towards this.
Through M&G's Catalyst strategy, we have seen first-hand the opportunity created by the UK's world-class innovation ecosystem. Our partnership with Phoenix Court reflects a shared ambition to connect more institutional capital with high-growth British companies. That is good for founders, good for the economy and good for UK investors, who should be able to share more directly in the value created by British innovation.
Too often, promising British businesses look overseas for the capital and support they need to reach the next stage. If Britain wants to compete for the industries and jobs of the future, we need to get better at backing our most promising companies with the capital, connections and confidence to scale here in the UK. We want to be a long-term partner to the founders, investors and businesses building the UK's next generation of category defining companies. That means not only providing banking services, but helping bring together the capital, expertise and networks that innovative businesses need to grow. Banks can be part of the solution. Our investment in Phoenix Court's platform is a good example of how NatWest can use its scale, capital and convening power to strengthen the UK's innovation ecosystem and help exceptional companies start, scale and stay here in the UK.
