Why is the UK state investing in £6.45bn Kraken? It doesn’t need public money

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Nils PratleyJanuary 21, 2026 at 07:30 PM

AI Summary

medium article 3 min

The British Business Bank (BBB), a state-owned entity focused on funding small UK businesses, invested £25 million in Kraken Technologies, a software platform valued at £6.45 billion and being spun off from Octopus Energy. This investment is part of a larger $1 billion fundraising round led by a US fund. The BBB's mission is to support smaller businesses, and Kraken's size and ability to attract private investment raise questions about the rationale for public funding. The UK government, specifically Business Secretary Peter Kyle, suggested the investment aimed to influence Kraken's decision to list on the London Stock Exchange, though the small stake makes this unlikely.

Key Entities & Roles

Key Player Opposition Context

Sainsbury's 30% Pearson 30% New York 40% FTSE 100 40% London 40% DI Capital Partners 50% Greg Jackson ×250% Peter Kyle ×260% Octopus Energy ×370% UK ×370% British Business Bank ×490% Kraken Technologies ×895%

Keywords

kraken technologies 100% british business bank 90% investment 80% funding 70% public money 70% equity 60% stock market listing 60% tech company 50% venture capital 50% economic growth 40%