Haatch, a venture capital firm headquartered in Stamford, has received an additional £10M investment from British Business Investments (BBI). This funding is part of BBI’s Regional Angels Programme, which seeks to improve access to early-stage financing for startups across the UK. The new commitment increases BBI’s total investment in Haatch to £20M, further strengthening their collaboration. The additional capital allows Haatch to expand its financial support for emerging businesses, particularly in regions outside London.
BBI’s investment in Haatch aligns with its broader strategy of enhancing regional funding opportunities. Over the years, Haatch and BBI have co-invested in multiple early-stage businesses, including Aerocloud and Data Literacy Academy. These investments have facilitated significant funding rounds and key business deals. The latest injection of capital represents a continued effort to provide resources for early-stage entrepreneurs and ensure a diversified startup ecosystem.
How Will Haatch Use the Additional Capital?
The new investment will strengthen Haatch’s ability to back pre-seed startups in the UK. By increasing its financial contribution, Haatch can allocate £85,000 more to each £250,000 investment. This added support is expected to help startups extend their operational runway, hire key talent, and accelerate early growth. Scott Weavers-Wright, co-founder and General Partner at Haatch, acknowledged the importance of the investment, stating:
“We are proud to strengthen our partnership with British Business Investments. Their increased commitment enables us to continue supporting high-growth businesses across the UK and drive more capital into underserved regions, building on our track record of already investing over 70 per cent outside of London.”
What Impact Does This Have on UK Startups?
The increased funding allows Haatch to offer larger pre-seed investments of £325,000 instead of the previous £250,000. This additional capital provides startups with increased flexibility and financial security at a critical stage. BBI’s Managing Director, Adam Kelly, highlighted the significance of the investment, stating:
“We are pleased to continue our support with a new commitment of £10M, taking our investment to £20M. This further investment will allow Haatch to continue to drive more capital into the Nations and Regions of the UK.”
Since its inception, Haatch has invested in over 120 businesses, with its portfolio now valued at more than £900M. By focusing on early-stage B2B software startups, Haatch aims to support businesses with high growth potential. The firm co-invests alongside BBI to ensure a more robust financial foundation for emerging companies.
Haatch operates through two primary funds, SEIS and EIS, each catering to different startup stages. The Haatch SEIS Fund supports a diverse portfolio of 10-15 pre-seed companies, targeting a potential return of 5x. Investors in the fund benefit from SEIS tax reliefs, including 50 per cent income tax relief. Meanwhile, the Haatch EIS Fund backs 4-6 seed-stage businesses, targeting a 3x return and offering 30 per cent tax relief. Both funds collaborate with BBI to co-invest in promising startups.
Expanding financial backing for early-stage startups plays a critical role in fostering innovation and entrepreneurship. By securing increased funding from BBI, Haatch enhances its ability to help companies scale. The investment strengthens Haatch’s role in the UK startup ecosystem, ensuring that businesses outside of London receive adequate financial support. With a focus on B2B SaaS companies, Haatch continues to shape the early-stage investment landscape. As the firm deploys this new capital, startups in underserved regions could benefit from greater funding opportunities and improved chances of long-term success.
