British Business Bank backs Highland Europe fund VI

The British Business Bank has committed €65 million to Highland Europe's Technology Growth Fund VI, a fund of more than €1 billion.

The investment is intended to support technology-enabled businesses across the UK and Europe, as Highland Europe continues to focus on growth-stage companies from Series B to pre-IPO.

Based in London and Geneva, Highland Europe has raised €3.75 billion across six funds since launching in 2012. It says it has backed more than 80 companies and recorded 30 exits, with investments spanning 14 countries.

The latest fund will target data, artificial intelligence, software infrastructure, cyber security, fintech and consumer technology. Those sectors align with government priorities in digital and technology and financial services.

The two organisations already have a connection through 9fin, the AI-based intelligence platform. They recently co-invested in the company's Series C round, after Highland Europe had led its Series B financing.

Scaleup funding

The investment adds to the British Business Bank's role in channelling capital to smaller and faster-growing UK businesses. In the 2025/26 financial year, it said it helped 38,000 UK businesses access £9.4 billion in finance, including £1.3 billion of public funding, £4.3 billion of private capital and £3.7 billion of guaranteed lending.

That total included about 30,000 businesses the bank had not previously helped to finance. Wholly owned by the UK government, the organisation was set up to improve access to funding for smaller businesses looking to start, grow and remain in the UK.

Growth equity funds such as Highland Europe's operate in a part of the market where companies have moved beyond early venture rounds but are not yet ready for a stock market listing. For UK technology companies, access to this stage of funding has often been cited as a challenge compared with the United States.

"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. By backing Fund VI, we're ensuring more investment flows into the UK and that companies with global ambitions can grow, scale and succeed here at home," said Christine Hockley, Managing Director and Head of Commercial Equity Funds at British Business Bank.

Michael Laycock, Investment Director at British Business Bank, described the deal as the start of a new relationship with the investor.

"Our commitment marks a new relationship with one of Europe's leading growth-stage investors. Highland Europe has a proven track record of backing innovators and helping them become global businesses. This investment will support the continued deployment of vital scaleup capital into ambitious UK technology companies," said Laycock.

Fund focus

Highland Europe has focused on software and internet businesses since it was founded. Its portfolio includes Featurespace, hyperexponential and ME+EM, while other investments named by the firm include 9fin, AMCS, Bending Spoons, Camunda, EGYM, GetYourGuide, Huel, Nexthink, n8n, Wolt and Zwift.

The British Business Bank's backing is another example of public money being used to anchor private investment vehicles in sectors seen as strategically important to the UK economy. By investing through specialist fund managers rather than directly into most companies, the bank aims to widen the pool of capital available to scaling businesses.

For Highland Europe, the fund comes as investors continue to assess the effects of artificial intelligence on software, financial technology and broader digital markets. The firm says the current environment is reshaping business models across industries and influencing where growth investors deploy capital.

Sam Brooks, Partner at Highland Europe, said: "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."