UK State Backer Fuels Highland Europe's Growth Fund

The British Business Bank has injected significant capital into Highland Europe's latest growth equity fund, signaling continued support for scaling technology ventures across the continent. The state-owned entity committed €65 million (approximately £55.6 million) to Highland Europe's Technology Growth Fund VI, a substantial €1.1 billion vehicle dedicated to empowering high-potential European tech companies.

This strategic allocation by the British Business Bank underscores its commitment to addressing the critical funding gap for late-stage technology businesses. By backing experienced growth equity managers like Highland Europe, the bank aims to ensure that promising European scaleups can access the capital needed to achieve global reach and market leadership. The fund's focus areas include software, artificial intelligence, cybersecurity, fintech, data analytics, and consumer technology, targeting companies from Series B through to pre-IPO stages.

Highland Europe, a firm established in 2012 and headquartered in London, has built a strong track record, amassing over €3.75 billion across six funds. The firm has a history of supporting more than 80 scaleups, facilitating 30 successful exits. Notable liquidity events for portfolio companies such as Nexthink, Huel, and Bending Spoons highlight their ability to identify and nurture rapidly growing businesses. The firm's existing UK investments also include insurtech firm Hyperexponential and fraud prevention specialist Featurespace.

The partnership between the British Business Bank and Highland Europe is not new. The two entities have previously collaborated, notably co-investing in 9fin, a financial intelligence platform that achieved unicorn status following its Series C funding round. This established relationship provides a solid foundation for the current commitment, demonstrating mutual confidence in their investment strategies and execution capabilities.

Christine Hockley, managing director at the British Business Bank, emphasized the importance of specialized investors in the UK's vibrant tech sector. She stated, “The UK is home to a world-class technology sector, but entrepreneurs need specialist investors who understand the unique challenges of scaling a growth-stage company. Highland Europe brings deep expertise and a powerful network of founders, operators and early-stage investors across Europe’s technology ecosystems.”

Sam Brooks, a partner at Highland Europe, expressed gratitude for the continued support from their limited partners, including the British Business Bank. He remarked, “We are deeply grateful to our Limited Partners for their long-standing trust and commitment to Fund VI. Their support enables us to continue backing Europe’s most ambitious founders at a uniquely transformational moment, as AI reshapes every industry.” The fund's substantial size and strategic focus position it to play a crucial role in the ongoing evolution of Europe's technology ecosystem, particularly as advancements in AI continue to drive innovation across diverse sectors.