London launches £70m fund to back startups struggling to raise investment

A new £70m fund backed by the Mayor of London and the British Business Bank has launched to help growing businesses struggling to secure finance from traditional lenders. The Future London Growth Fund, managed by investment firm FSE Group, will offer loans of between £1m and £3m to companies across London’s 32 boroughs and the City. The fund, launched on Thursday, aims to bridge the gap between conventional bank lending and larger venture debt deals, targeting businesses with strong growth prospects that may not yet be profitable. It has secured cornerstone commitments from the British Business Bank, which is providing £20m, and Funding London, the Mayor’s investment arm. The launch comes as British businesses face mounting pressure over access to capital, with founders warning that funding shortages are forcing promising companies to scale overseas. Despite London’s status as a global financial centre, smaller businesses continue to struggle to secure growth funding.