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British Patient Capital commits £33m to IQ Capital Fund III

Press release 16 July 2019

British Patient Capital, a subsidiary of the British Business Bank, has committed £33m into IQ Capital Fund III, as it closes at £136m.

IQ Capital Fund III focuses on investing into companies at Seed and Series A stage, and in the last year has invested in 12 companies, including Causalens, Concirrus, and Iotic.

The partners, Ed Stacey, Kerry Baldwin, and I, have been investing in deep-tech for over 20 years, and during this time we’ve seen investment in the sector grow from tens of millions p.a. to $1.75 billion deployed across Europe in 2018 alone. Half of this capital was invested into UK start-ups, reinforcing the UK as a leader in Europe, with well-established technology ecosystems formed in Cambridge, Bristol, Oxford, and London.

IQ Capital has grown its funds under management over 10x in the last five years, following exits to Google, Apple, and Facebook, and a double-dragon to Oracle. The investment team has also tripled in size over the same period with recent joiners Rick Hao, Daniel Carew and Marek Chalupnik.

- Max Bautin Co-Founder and Partner at IQ Capital

IQ Capital has continued to build its team and has established itself as strongly-performing investor in fast growing deep-tech firms. As a business, we have a particular interest in supporting this area of the economy with better access to long-term patient capital.

The British Business Bank already had a strong relationship with the team at IQ Capital through its Enterprise Capital Fund programme, which made investments into their Funds I and II. We’re excited to be able to extend that relationship further by making this £33m commitment to Fund III through British Patient Capital.

- Catherine Lewis La Torre CEO, British Patient Capital

Further Information

Notes to editors

About British Patient Capital

British Patient Capital is the trading name of British Patient Capital Limited, a wholly-owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. It forms part of the British Business Bank’s commercial arm.

Its mission is to enable long-term investment in innovative firms led by ambitious entrepreneurs who want to build large scale businesses. British Patient Capital has been given new resources of £2.5bn and will deliver a programme designed to support high growth potential innovative UK businesses in accessing the long-term financing they require to scale up. 

British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. Neither British Business Bank nor its principal operating subsidiaries are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.

The investment from British Patient Capital into IQ Capital Fund III does not amount to any endorsement or warranty from British Business Bank, the British Business Bank plc, or the government of the UK.

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