Conducting an Independent Review of The London Co-investment Fund

The London Co-investment Fund seeks to support London’s start-ups to grow into high-performing tech businesses. Established in 2014 by Funding London, Capital Enterprise, and the Mayor of London, the £25 million Fund provides early-stage equity investment to companies in the Science, Digital and Tech sectors.

As the Fund approached the end of its Investment phase, Steer Economic Development was commissioned to undertake an Independent Evaluation. We were tasked with the objectives to: 

• Complete a Fund-Level performance appraisal;
• Assess the firm-level impacts for those who received funding;
• Complete a Green Book compliant assessment of additionality;  
• Consider the spillover effects for the local economy and broader regeneration efforts; and,
• Evaluate the ability of the LCIF to repay the initial capital and become an evergreen fund.

The evaluation found a strong performance of the Fund, aligned with its objectives and positive impacts generated for both the beneficiary firms and the Early-Stage Finance ecosystem in London.

At the time of the evaluation, businesses receiving investment had created over 1,600 gross jobs, equivalent on a net basis to £65 million of Gross Value Added. These figures are expected to grow as the fund now transitions to equity realisation.

Steer Economic Development’s Evaluation Report concluded with a set of recommendations for the Fund, and any successor, to consider. Findings and recommendations were presented to the Fund’s Steering Group and representatives from the GLA.