UK relaunches Office for Investment to attract scaleups

For startups looking to scale operations, venture capital is often the golden ticket to successful expansion. 

That’s why growth-ready founders will be pleased to hear the government has relaunched its Office for Investment (OfI) initiative to attract high-profile foreign investment to the UK. 

Tech, AI, and green energy are among the fast-growing, innovative sectors that will be targeted by the program. Amid the current funding drought, the government’s attention towards investment should help create a more startup-friendly climate in the UK.

What is the new Office for Investment — and why does it matter?

The Office for Investment (OfI) is a joint venture between No.10 and the Department for Business and Trade, designed to support “transformational” investment in the UK. 

It aims to facilitate inward investment by providing professional investor relations, commercial support, and tailored opportunities for investors interested in the UK market. 

The revamped program will focus on “high-impact” foreign direct investment (FDI), especially in industries that align with the UK’s tech and innovation agenda, like AI and green energy.

Since taking office, the current government has welcomed around £100bn in investment into the UK. This includes a £10bn partnership with OCBC, Singapore’s second largest bank, to encourage investment from the Asia Pacific region in energy, infrastructure, and real estate, as well as £500 million from JLR to support the production of electric vehicles.

Regarding the relaunch of the OfI, CEO of the London Chamber of Commerce and Industry, Karim Fatehi, OBE, commented, “Setting a new course for the Investment Office has the potential to drive greater investment in London and the rest of the UK, creating jobs, building businesses, and supporting economic growth.

“To remain relevant in a competitive market, we must create the best conditions for international investors to succeed and prosper in the UK.”

Government scales up innovation amid LSE chaos

While the UK was ranked the second-most attractive place in the world for investment in PwC’s annual survey of business leaders, it still trails behind the US. 

With UK-born household names, Wise and Deliveroo going stateside, Britain could be in danger of falling behind if it doesn’t attract more foreign investment. 

In its efforts to kickstart economic growth, the government has already announced several programs and initiatives. Namely, the AI Opportunities Action Plan, a £250m program to support AI development, offering funding, skills training, and access to tech for AI startups. 

Additionally, reforms to UK pension policies have this year seen seventeen major pension funds sign an agreement to invest in high-growth companies and VC-backed scaleups. The move could unlock up to £50bn for UK businesses and projects.

Lastly, the government’s recent push to cut red tape for foreign investors and help international scaleups to launch UK offices shows a clear determination to support the UK’s flourishing startup scene and create more jobs.

What should scaling startups take away from this?

It’s good news for UK startups, as it signals that more capital will be flowing into the UK, meaning more funding opportunities from international backers looking for credible UK deals. 

Importantly, the OfI is prioritising tech and innovation sectors for investment opportunities. Think AI, clean tech, and health innovation. If your startup operates in these spaces, it’s smart to spotlight this when defining your position and narrative for funding pitches. 

Since the government is finally trying to make the UK startup-friendly, now is the opportune moment to get noticed in investable sectors.