{
  "id": 9336206,
  "title": "Natwest makes first VC fund bet in push to back British tech",
  "url": "https://urgent.news/2026/09/23/natwest-makes-first-vc-fund-bet-in-push-to-back-british-tech",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-23T12:08:25.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/natwest-makes-first-vc-fund-bet-in-push-to-back-british-tech/"
  },
  "original_language": "en",
  "account": "Natwest has made its inaugural investment in an independently managed venture capital fund, aligning with a growing trend among major British financial institutions to inject more domestic capital into UK technology enterprises. The banking behemoth is allocating funds across Phoenix Court's Localglobe, Latitude, and Solar funds, which support companies from their initial funding stages up to scale-up. This move is part of a partnership aimed at attracting several hundred million pounds of institutional capital to the platform. The British Business Bank has pledged £50 million, while M&G and HSBC have also contributed to Phoenix Court's funds. Natwest's foray into the venture capital market intensifies following the launch of its dedicated Venture Banking division earlier this year. Executive Paul Thwaite emphasized the necessity for Britain to enhance its backing of promising companies with capital, connections, and confidence to scale within the UK. The investment size remains undisclosed. This move comes amid a broader push by the government and City to leverage Britain's substantial domestic savings for swiftly growing private companies. While the UK ranks third globally in venture capital investment, behind the US and China, over 80% of scale-up funding for successful British companies still originates from overseas investors, according to the British Business Bank. Phoenix Court estimates there are approximately 1,800 venture-backed British companies generating more than £20 million in annual revenue, yet fewer than one percent have received backing from prominent UK asset managers involved in the Mansion House initiative. This scarcity has raised concerns about British pension funds, insurers, and other institutions potentially forfeiting returns generated by homegrown companies while startups increasingly seek larger pools of US and international capital as they expand. Natwest's investment builds upon its venture banking expansion, targeting founders, venture capital firms, and high-growth businesses with specialized lending and banking services. The bank acknowledged the UK's persistent challenge in securing scale-up capital despite signs of recovery. Natwest will now become a direct investor in these funds, gaining exposure to companies within Phoenix Court's portfolio while also offering banking services to the sector. Phoenix Court houses early-stage investor Localglobe, growth fund Latitude, and scale-up vehicle Solar. Its portfolio includes British tech companies such as Monzo, Raspberry Pi, Tide, and Motorway. M&G previously contributed £50 million to a pilot of the Solar fund, now backing 18 companies with combined annual revenue of £5 billion and employing over 8,500 people in the UK. M&G is increasing its investment across Phoenix Court's strategies, while HSBC has also committed capital to the funds. The British Business Bank's £50 million investment follows its recent £75 million commitment as a cornerstone investor in a new Molten Ventures growth fund, another effort to augment capital for later-stage British companies. The government agency supports £9.4 billion in financing for smaller UK businesses in the 2025/26 financial year, including £4.3 billion in private capital alongside its own funds. The latest deal arrives as the government prepares a separate £1 billion UK Scale-up Fund, backed by major pension schemes like Nest, Railpen, Border to Coast, and Local Pensions Partnership Investments. Phoenix Court co-founder and chair Saul Klein highlighted Britain's position as a world-leading innovation economy but noted that \"too many companies still lack the domestic capital to scale here.\" Klein expressed optimism about collaborating with British institutions to ensure that British savers reap the benefits of homegrown innovation, rather than relying on foreign investors in Denmark, Ontario, or Singapore.",
  "summary": "Natwest has made its first direct investment into an independently managed venture capital fund, joining a push by some of Britain’s biggest financial institutions to funnel more domestic money into UK tech companies. The banking giant is investing across top venture capital firm Phoenix Court’s Localglobe, Latitude and Solar funds, which back companies from their [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}