British Business Bank Invests £25m in Tech Firm Kraken Amid Controversy Over Public Funding
The UK's state-owned British Business Bank (BBB) has announced a £25 million equity investment in Kraken Technologies, a software platform that is being spun off from the Octopus Energy empire. The move has raised eyebrows among experts and politicians, who question the need for public money to support a company valued at $8.65 billion (£6.45 billion).
The BBB's mission is to drive economic growth by providing finance to smaller businesses. However, Kraken fits no such bill. As one of the UK's fastest-growing companies, it boasts recurring revenues of $500 million and has already secured funding from international venture funds. The company's valuation suggests that it does not need public money to scale up.
The BBB's investment is even more striking given that the majority of its investors are international, and the firm has made significant profits in recent years. It appears that the BBC has quietly rewritten its investment mandate to justify supporting large-scale companies like Kraken, which have already done extensive scaling up.
Critics argue that the £25 million investment represents a "seat at the table" rather than a meaningful contribution to the company's growth. Peter Kyle, business secretary, has tried to spin the move as part of efforts to keep Kraken in the UK. However, this argument is tenuous at best, and experts believe that the decision on listing venue ultimately depends on where the valuation will be higher.
The BBB's permanent capital has been increased by £6.6 billion since last year's Treasury spending review, taking the total to £25.6 billion. While it is understandable that the BBC aims to make a financial return on its investments, the lack of transparency in its investment mandate and mission creep raise concerns about whether public money is being used effectively.
The Kraken investment may or may not turn out to be a profitable use of taxpayers' money, but it highlights the need for greater scrutiny over the BBB's activities. As the UK looks to support innovation and growth, it is essential that its state-owned enterprises operate within clear guidelines and objectives rather than expanding their mandates without accountability.
The UK's state-owned British Business Bank (BBB) has announced a £25 million equity investment in Kraken Technologies, a software platform that is being spun off from the Octopus Energy empire. The move has raised eyebrows among experts and politicians, who question the need for public money to support a company valued at $8.65 billion (£6.45 billion).
The BBB's mission is to drive economic growth by providing finance to smaller businesses. However, Kraken fits no such bill. As one of the UK's fastest-growing companies, it boasts recurring revenues of $500 million and has already secured funding from international venture funds. The company's valuation suggests that it does not need public money to scale up.
The BBB's investment is even more striking given that the majority of its investors are international, and the firm has made significant profits in recent years. It appears that the BBC has quietly rewritten its investment mandate to justify supporting large-scale companies like Kraken, which have already done extensive scaling up.
Critics argue that the £25 million investment represents a "seat at the table" rather than a meaningful contribution to the company's growth. Peter Kyle, business secretary, has tried to spin the move as part of efforts to keep Kraken in the UK. However, this argument is tenuous at best, and experts believe that the decision on listing venue ultimately depends on where the valuation will be higher.
The BBB's permanent capital has been increased by £6.6 billion since last year's Treasury spending review, taking the total to £25.6 billion. While it is understandable that the BBC aims to make a financial return on its investments, the lack of transparency in its investment mandate and mission creep raise concerns about whether public money is being used effectively.
The Kraken investment may or may not turn out to be a profitable use of taxpayers' money, but it highlights the need for greater scrutiny over the BBB's activities. As the UK looks to support innovation and growth, it is essential that its state-owned enterprises operate within clear guidelines and objectives rather than expanding their mandates without accountability.
considering they're already raking in $500 million in recurring revenues. i think the BBB's mission should be more specific about what kind of companies it supports, and not just vague economic growth. it's like they're trying to justify public funding for a company that can clearly scale up on its own 
. what's next, investing in Google? 
. And what's up with the mission creep? The BBC needs to get its priorities straight and focus on supporting genuine small businesses that need a hand up, not just large-scale companies that can already fly solo 
, and it doesn't look good for taxpayers' money 
.
And what's with the BBC's mission creep? It seems like they're expanding their mandate without really thinking about how that's going to impact us as taxpayers. We need to be more careful about who gets our money and what they plan to do with it. 
. I mean, they've got international funds pouring in and they're valued at 8.65 billion bucks! Does the UK really need to foot the bill for this one? 
The BBC's mandate should be clear: supporting small businesses, not big players like Kraken 
. It's all about accountability now... or is it just more money wasted on a company that doesn't even need it 
It's also weird that international investors are backing this company, doesn't that mean the BBB isn't really doing its job to support UK businesses? 
, this is so interesting 
, how can a company like Kraken that's already doing well get £25m from the public? It feels like a lot of money for something that doesn't really need it 
.