NatWest backs UK innovation with first VC fund investment
NatWest has today announced an investment into Phoenix Court’s funds, marking its first direct limited partner(LP) commitment to an independently managed Venture Capital Fund and a significant step in supporting the UK’s innovation economy following the launch of NatWest Venture Banking in April.
Phoenix Court is a venture capital firm focused on investing in high-growth innovation-led companies, supporting businesses from seed-stage through to scale-up. The funds – LocalGlobe, Latitude and Solar – aim to provide long-term backing to founders as they develop, grow and scale their businesses.
The investment reflects NatWest Venture Banking’s role in supporting the full lifecycle of venture-backed businesses and strengthening connections across the innovation ecosystem, from founders and investors to scale-stage companies. It complements the work of NatWest’s Open Innovation team, which invests in and partners with leading startups, strengthening the bank’s ability to support and scale innovative businesses across the UK.
By partnering with Phoenix Court, NatWest is extending its support beyond banking services, helping to unlock capital for early-stage and scaling businesses and reinforcing its commitment to enabling sustainable growth across the UK innovation economy.
Paul Thwaite, CEO of NatWest Group, said: “Too often, promising British businesses look overseas for the capital and support they need to reach the next stage. If Britain wants to compete for the industries and jobs of the future, we need to get better at backing our most promising companies with the capital, connections and confidence to scale here in the UK.
“We want to be a long-term partner to the founders, investors and businesses building the UK’s next generation of category defining companies. That means not only providing banking services, but helping bring together the capital, expertise and networks that innovative businesses need to grow. Banks can be part of the solution. Our investment in Phoenix Court is a good example of how NatWest can use its scale, capital and convening power to strengthen the UK’s innovation ecosystem and help exceptional companies start, scale and stay here in the UK.”
Jenny Edwards, head of NatWest Venture Banking, said: “Our ambition is to be more than a banking provider. We want to be a long-term partner to the investors and founders building the UK’s next generation of category-defining companies.
“Supporting Phoenix Court as an LP reflects that strategy and our shared belief that the UK must bring together founders, investors, corporates, pension funds and policymakers if we are to compete on the global stage.
“Phoenix Court has long championed this kind of collective ambition, and we are proud to support its work to strengthen the ecosystem and help exceptional UK companies start, scale and stay here.”
Saul Klein, co-founder and chair of Phoenix Court, said: “Britain has built the world’s third-largest innovation economy, but too many companies still lack the domestic capital to scale here. Our Solar pilot proved the opportunity is real: its 18 companies generate £5bn in annual revenue and have created more than 8,500 jobs in the UK alone.
“This meaningful partnership with British financial institutions like NatWest will help us back more exceptional companies from seed to scale, keeping more of the jobs, prosperity and returns they create in Britain. Working with these British institutions we can make sure that British savers benefit from our innovation, not just nurses in Denmark, teachers in Ontario and the Singapore metro system.”
Phoenix Court invests across the innovation lifecycle, providing flexible funding and strategic support to companies as they develop new technologies, products and services. The fund’s focus on supporting businesses from early-stage through to scale aligns with NatWest Venture Banking’s ambition to be a long-term partner to founders and investors.
NatWest Venture Banking brings together specialist expertise, capital solutions and ecosystem connectivity to help venture-backed businesses scale and succeed, working closely with investors, founders and partners across the UK. This investment marks the first LP commitment from NatWest Venture Banking and signals its intention to play a more active role in supporting venture capital and the broader innovation ecosystem.