London businesses may receive a boost thanks to a new £22 million investment fund for start-ups.
The fund, unveiled yesterday by Mayor of London Boris Johnson, is intended to help firms in their early stages to grow. It will initially focus on firms in the creative industries, education, healthcare, leisure, and on digital businesses.
The MMC London Fund consists of £11 million of public money, matched by the same amount from private investors.
The fund has already made five investments, including in ticketing company Masabi and home exchange website Love Home Swap.
Johnson said: “London’s small to medium companies are a vital component of this city’s economy, supporting significant numbers of jobs.
“This innovative equity fund is using public and private money in order to offer much needed financing when more traditional routes are not available.”
The fund’s portfolio must also meet a number of “equality and sustainability objectives”. A specific portion of the fund will be dedicated to businesses from London’s most deprived boroughs, including Hackney and Tower Hamlets.
It is also intended that the fund will support new businesses in London’s so-called Tech City, which sits partly in Tower Hamlets.