Kraken, a software firm spun out of Octopus Energy that provides software to utilities companies, has raised a £25m investment from the British Business Bank as part of a $1bn share sale that values Kraken at $8.56bn.
The bank, which is a major limited partner in UK venture capital funds, also pledged to invest £50m apiece into two UK deep tech funds: Epidarex Capital, based in Edinburgh, and IQ Capital, based in London.
The transaction is the British Business Bank’s largest ever direct investment into a private company. Octopus Energy announced in December that it would spin Kraken out into its own entity; Kraken supplies software to utilities companies.
The investment follows reforms to the bank’s mandate allowing it to take higher‑risk stakes in businesses operating in areas prioritised by the UK’s Modern Industrial Strategy, including advanced manufacturing and clean energy. Business secretary Peter Kyle also used the announcement at Kraken’s headquarters to outline measures to improve conditions for UK businesses, including plans to allow virtual AGMs, streamline corporate reporting and consult on simplifying competition investigations.
“We are placing big bets on the industries where Britain can win, backing our innovators with real firepower, and cutting the red tape that holds them back,” said UK business secretary Peter Kyle.
