The British Business Bank announced a five‑year plan to boost UK venture capital. Chief investment officer Leandros Kalisperas told the London Venture Capital Network that the bank will allocate £2 billion a year to venture and growth funds, a jump from the roughly £500 million it deployed annually over the previous decade. The commitment translates to about $2.66 billion or €2.31 billion each year.

Investors see the infusion as a direct response to a slowdown in private‑equity exits and a widening funding gap for scale‑up companies. By raising the public pool, the bank aims to crowd in additional private capital, improve fund performance and help UK startups compete with US and Asian ecosystems. The move could lift overall VC investment volumes by double‑digit percentages.

Analysts expect the bank’s annual outlay to reshape deal sourcing, prompting more early‑stage funds to launch and existing managers to scale. With a clear fiscal commitment, limited partners can plan allocations with greater certainty. The British Business Bank’s strategy therefore sets a new baseline for state‑backed venture financing in Britain and signal confidence that government backing can offset market volatility.