British Patient Capital Interim Evaluation

In 2017, the UK Government’s Patient Capital Review (PCR), led by HM Treasury, identified the lack of long-term finance preventing innovation-focused UK companies from scaling. As part of its response, the UK Government launched the British Patient Capital (BPC) programme in 2018: a £2.5 billion Venture Capital Investment Fund set up as a subsidiary of the British Business Bank with both policy and commercial objectives. BPC is intended to enable high-growth and innovative companies to access the long-term finance they need to grow, and to do this in a way that delivers value for money for the UK taxpayer.

SQW, in collaboration with, St John’s Innovation Centre, Middlesex University, Beauhurst and Qa Research, was commissioned by the British Business Bank to undertake an interim evaluation of BPC. The work involved a process, impact, and economic evaluation of BPC. The evaluation adopted a mixed method approach, including a telephone survey of beneficiary companies and follow-up case studies, and econometric analysis of impacts.

Overall, the evidence suggests that BPC has made good progress against its objectives at this interim evaluation stage. It has increased the supply of additional capital and enabled funds of greater scale, with a greater UK focus and that have been able to close more quickly. Companies have used BPC-backed finance to support innovation and growth. The findings suggest that BPC-backed investments are providing value for money for the taxpayer so far.

The Interim Evaluation Report is available here.