In a significant move aimed at bolstering the UK’s startup ecosystem, Haatch, one of the most distinguished SEIS and EIS managers in the UK, has secured an additional £10 million investment from British Business Investments (BBI). This brings BBI’s total commitment to Haatch to £20 million. This injection of capital is directed towards supporting pre-seed B2B SaaS founders across the UK, underscoring a concerted effort to drive innovation and growth in this key sector. British Business Investments, a subsidiary of the British Business Bank, aims to enhance accessibility to capital for early-stage businesses through its Regional Angels Programme. Their focus on addressing the imbalance in early-stage finance aims to boost the capital available to smaller enterprises, many of which have struggled to secure the necessary funding to scale their operations.
Impact on the UK Startup Ecosystem
Since its inception, Haatch has made a substantial mark on the early-stage investment landscape by co-investing with BBI in 93 companies, demonstrating the tangible impact of strategic funding in fostering innovation. These investments include notable startups such as Aerocloud, which secured a $12 million Series A round, and Data Literacy Academy, which landed a significant contract after receiving pre-revenue backing. Over 120 companies now form part of Haatch’s portfolio, collectively valued at more than £900 million. This impressive track record highlights Haatch’s role as a pivotal player in scaling early-stage businesses and driving economic growth within the tech sector. The recent infusion of funds from BBI enables Haatch to surpass the conventional SEIS funding cap by adding £85,000 to each £250,000 investment. This significant increase in available funding provides pre-seed B2B SaaS startups the necessary financial runway to achieve their growth aspirations.
Haatch’s ability to exceed the typical SEIS funding cap is a testament to the confidence that BBI has in Haatch’s investment strategy and due diligence processes. This partnership is particularly valuable for startups located outside the London area, which often encounter more significant challenges in securing early-stage finance. The extended support to high-growth businesses in these underserved regions reinforces Haatch’s commitment to investing in areas that typically do not receive as much attention and investment. By focusing on these regions, Haatch aims to create a more equitable distribution of resources, fostering innovation, and growth more broadly across the UK. The infusion of additional funds will undoubtedly amplify Haatch’s capacity to nurture startups through critical stages of development.
Strengthened Partnership and Future Prospects
The strengthened partnership between Haatch and BBI represents more than just a financial boost; it signifies a strategic alignment to address regional disparities in startup finance. Scott Weavers-Wright OBE, Co-founder and General Partner at Haatch, expressed his pride in this enhanced collaboration. The increased investment supports Haatch’s mission to back high-growth businesses and inject capital into underserved areas. This focus aims to foster a new generation of B2B SaaS startups, setting a precedent for future funding initiatives aimed at balancing economic growth in the UK.
Adam Kelly, Managing Director at BBI, emphasized the importance of supporting entities like Haatch to ensure more capital flows to various UK regions. This regional focus aligns with BBI’s goal of mitigating access disparities in early-stage finance through programs like the Regional Angels Programme. These initiatives are essential for bridging funding gaps and providing support systems needed by early-stage enterprises to navigate the tech landscape.
This additional investment reaffirms the synergy between Haatch’s vision and BBI’s objective of enhancing capital flow to early-stage enterprises. By ensuring more accessible funding, Haatch and BBI are crucial in shaping the future of the UK’s B2B SaaS sector. Their concerted efforts validate Haatch’s investment model and bolster the ecosystem under the SEIS and EIS schemes, laying the groundwork for sustainable growth. The collaboration promises to transform the startup funding environment, driving innovation and growth in the UK tech sector.
