British Business Bank has committed up to €100m (£90.4m) to the first European venture capital fund being raised by a San Francisco-based financier.
It is understood that Top Tier Capital Partners is raising €300m in total for its first European fund of funds. The fund will invest in technology and healthcare. Top Tier was unavailable for comment.
The BBB’s investment is its first through its £500m Managed Funds Programme, administered by its British Business Investments subsidiary.
Top Tier, with offices in San Francisco and London, manages niche-focused funds-of-funds that invest in venture capital funds as well as making selected direct investments.
The US financier opened its London office last year.
Meanwhile, Top Tier is raising $600m across two other funds-of-funds.
It was reported in June that Top Tier Venture Capital IX LP and Top Tier Venture Velocity Fund 3 LP have a target size of $350m and $250m respectively.
Catherine Lewis La Torre, CEO of British Business Investments, said: “Top Tier Capital Partners has built a successful 20-year track record from investing in venture capital funds. This first commitment from the British Business Investments’ Managed Funds Programme provides a new pool of capital for the UK’s venture capital market, brings additional talent and expertise to the UK VC ecosystem and will increase access to patient capital.’’
A Top Tier spokesman said: “In Europe we believe the venture capital market is attractive. We see high rates of innovation, appropriate levels of capital and increasing amounts of liquidity which has led TTCP to open an office in London in order to be closer to the activity and to invest more into Europe.”
Exchequer secretary Simon Clarke, the minister in charge of implementing the Government’s drive to get more money invested in growth businesses, said: “The UK is a global business leader – creating more start-ups and attracting more venture capital funding than any other European country. We want to build on that record which is why we have invested billions of pounds into the British Business Bank to support our innovative and ambitious companies.