Against a backdrop of rising global temperatures, the new Labour government’s creation of the National Wealth Fund is an important step in accelerating the UK’s green transition. The fund’s blended finance model – providing debt and equity funding – will channel £7.3bn of public cash into low-carbon projects.
The hope is that the fund will bring together key institutions and private investors to mobilise over £20bn of private investment into green technologies and, crucially, help them to scale.
Traditionally, VC-backed companies have relied on equity funding as most software companies do not create major sunk costs until they launch their first version of a product and test customer demand.
However, debt financing is…
