UK Sovereign Fund in the Works?

BBB's Sovereign Growth Fund Ambition, United Airlines Looks to Fuel the Future, and Scoot Scores Funding to Transform Video Meetings.

Author

Adam from VC Brags
February 22, 2023

Welcome Shareholders,

In this daily edition of the Brags Newsletter, we'll cover the UK's grand plans to launch a Sovereign Fund, United Airlines looking to give sustainable aviation fuel-focused startups a boost with a new fund, and a startup raises money to shake up video meetings.

So sit back, grab a snack, and enjoy!

Venture Today 👏

  • The British Business Bank (BBB) is looking for greater independence from the government to transform into a sovereign growth fund for the UK, enabling it to reinvest proceeds from its venture capital investments.

BBB invests in venture capital funds that finance companies in various sectors, including technology and life sciences, and manages regional investments and startup funds. BBBs venture capital arm, British Patient Capital (BPC), launched in 2018 with a 10-year mandate, was backed with £2.5 billion ($3.02 billion) in government funding. BPC is now the largest domestic investor in venture capital in the UK.

Politicians and Financial executives in London have long discussed creating a sovereign investment fund rivaling those of Saudi Arabia or Norway. Last year, veteran investment banker Nicholas Lyons said he was working with the city's institutions to raise an investment fund of up to $120 billion. As of March 2022, the BBB had $4.95 billion in assets under management, comprising $2.66 billion in debt financing to business and $2.29 billion in equity.

Who's Raising?

  • United Airlines Holdings is launching a fund, backed by major aerospace and financial companies, to invest in sustainable aviation fuel startups, marking one of the largest efforts to reduce air travel emissions.

The new fund is backed by Air Canada, Boeing, JPMorgan, Honeywell, and General Electric. United, along with Air Canada and other participating airlines, is expected to sign clean-fuel supply agreements with the sustainable aviation fuel startups they support from the fund. Additionally, the companies investing alongside United may have the opportunity to share carbon credits linked to fuel production.

Decarbonizing aviation is a major challenge as batteries are too heavy for all, but short flights and alternative jet fuels are expensive and require large amounts of water and energy to produce. Despite this, some startups are pursuing sustainable aviation fuel made from fats, oils, and waste, while others are exploring technologies like hydrogen fuel cells and electric flying taxis. However, most of these efforts are still far from achieving significant scale.

Startup of the Day

  • Scoot, which looks to reimagine video meetings with a dynamic chat interface, said it raised $12 million through a Series A led by Woodland Capital.

Scoot, previously known as Preciate, has now raised $16 million in funding with the recent round. The company is looking to reinvent videoconferencing, which often lacks the same energy as in-person meetings, by letting its customers choose background themes and music for meetings.

Admins also have access to meeting analytics, including who attended a meeting and the duration of each participant's stay. While these features are common across startups in the space, Scoot also offers unique features, like 'spontaneous conversations,' which enable participants to break out into smaller groups. This can be particularly useful for larger organizations, where meetings can exceed hundreds or even thousands of attendees.

Memes and Other Things

How was today's newsletter?

Give us your honest opinion. We really don't mind.