The British Business Bank has increased its commitment in Haatch’s pre-seed and seed funds by an additional £10 million.
This brings its total commitment to £30m through the Regional Angels Programme, which is designed to increase the availability of early-stage capital for businesses across the UK.
The additional capital means Haatch can maintain the pace of deployment across both its pre-seed and seed funds without diluting its regional focus.
Every company backed through a Haatch fund receives matched capital from the British Business Bank alongside the fund’s own investment, allowing Haatch to write larger cheques at the earliest stages and to exceed the typical SEIS funding cap by adding £85,000 to each £250,000 investment.
The commitment sits alongside a separate £32m platform managed by Haatch on behalf of the British Business Bank, which invests alongside a growing cohort of the UK’s most promising and diverse angel syndicates, including HERmesa, CircleRock Capital, The Games Angels, Sie Ventures and 2050 Capital.
Taken together, total British Business Bank capital managed by Haatch now stands at £62m.
To date, the British Business Bank and Haatch have co-invested in 208 companies with the number increasing every week. Haatch has backed more than 200 companies in total, with a combined portfolio valuation exceeding £1 billion, and has invested over 70% of its capital into companies headquartered outside London.
Fred Soneya, co-founder and general partner at Haatch, said: “Great companies are not built in one postcode, and the funding that backs them should not come from one either.
“This further commitment lets us keep deploying at pace across both our pre-seed and seed funds, and to keep writing meaningful first cheques in places where institutional capital has historically been thin on the ground.
“The British Business Bank has been alongside us in every company we have backed, and that consistency is what allows founders outside London to raise on the same terms as founders inside it.”
Mark Barry, senior investment director at the British Business Bank, added: “Haatch has built a strong track record of getting early-stage capital into the hands of founders right across the UK, and this additional £10 million allows that work to continue at scale.
“Alongside the syndicate platform Haatch manages on our behalf, this partnership is now directing £62m of co-investment towards some of the country’s most promising early-stage businesses, in the regions where that capital makes the greatest difference.”