S02E13 Crown Castê: Liz Bailey from the British Business Bank

Welcome to Crown Castê, your financial literacy podcast for small businesses. We publish inspiring, insightful conversations with investors and stewards of capital. In this episode, we welcome Liz Bailey, Senior Investment Manager at the British Business Bank, to discuss how the organisation supports emerging fund managers and addresses the equity funding gap for early-stage businesses. Liz shares her journey from corporate banking to venture capital, offering insights into how the British Business Bank plays a crucial role in fostering innovation and high growth in the UK’s startup ecosystem (1:00). The conversation dives into the Enterprise Capital Funds (ECF) program, designed to target pre-seed and seed-stage businesses. Liz explains how ECF serves as a cornerstone investor, covering 60-66% of fund sizes ranging from £25–100 million, and provides a leveraged return structure to attract private LPs (6:22). She highlights the rigorous due diligence process that distinguishes ECF-backed funds and attracts additional investment (8:26). Liz outlines the key criteria the British Business Bank uses to evaluate fund proposals, including team composition, track record, investment strategy, terms and structure, and fundraising plans. She emphasizes the importance of team dynamics, complementary skill sets, and a focus on commercial returns (12:10). The episode also touches on the strong performance of the Enterprise Capital Funds program, which outperforms the UK VC market across multiple metrics and has backed 11 unicorns to date. Liz attributes this success to early-stage investments in companies with low valuations and high growth potential (18:03). For aspiring fund managers, Liz advises researching LPs to tailor pitches effectively and understanding the unique motivations behind their investment strategies. She encourages them to explore the British Business Bank’s website for application guidance and resources (21:55). Join us for this insightful episode packed with practical advice for fund managers and a deep dive into the impact of the British Business Bank on the UK’s funding landscape. Where to connect Visit the ⁠British Business Bank website⁠ for more on the Enterprise Capital Funds Program. Connect with Liz on Linkedin.