David Miliband and John Browne join Giant Ventures, a new UK venture capital fund

Former foreign secretary David Miliband and ex-BP chief executive John Browne have joined a new venture capital firm that formally launched on Friday.

The pair will sit on the advisory board of London and Los Angeles-based Giant Ventures, which will invest in the areas of the environment, health and wellness, sustainable cities and financial inclusion.

Giant plans to invest $1bn over the next decade in backing companies throughout various stages of their lifespan. The company will have a “multi-stage” approach, meaning it will invest in both early and late-stage rounds. Investments in early-stage companies will average $1m, the company said.

The new firm was co-founded by Cameron McLain and Tommy Stadlen. Mr McLain was previously a principal at London-based Hummingbird Ventures and founder of data analytics company Beehive, which was sold in 2016 to US real estate data company Wedgewood.

Mr Stadlen also co-founded live photo app Swing Technologies, which was sold to Microsoft in 2017.

“The world faces severe challenges, from climate change to pandemics, which governments cannot fix alone,” Mr McLain said. “Giant exists to fuel innovation that matters.”

Mr Stadlen said he believed the largest companies of the decade will be those which are built to solve "critical societal and environmental problems”.

While the company officially launched on Friday it has already invested in a series of start-ups, including sleep app Calm, US healthcare platform Sesame, and 3D printing platform Mighty Buildings.

The company will draw on the expertise and contacts of Mr Browne and Mr Milliband to help identify future investment opportunities.

Since leaving BP in 2007, Mr Browne was a managing partner at energy investor Riverstone Holdings. Mr Miliband is president of the International Rescue Committee, an aid organisation for victims of humanitarian crises.

Giant has also recruited several other big names to its board, including David Helgason, the co-founder of Unity Software, the game engine company that listed earlier this month.

Alice Steenland, chief sustainability officer of French technology company Dassault Systemes, and Tensie Whelan, director of New York University’s Stern Centre for Sustainable Business have also joined the venture capital firm.

Pierre Denis, the former chief executive of luxury shoe brand Jimmy Choo, is a venture partner at the company.

So-called “purpose-driven” investment has become increasingly popular among wealth firms in recent years.

Environmental, societal, and governance (ESG) investing has reported enormous growth with the value of the industry now topping $30 trillion, according to McKinsey. The value of the industry is up 68pc since 2014.

In June, Mr Miliband told the Telegraph that the US had been “running interference” on tackling the coronavirus crisis by fighting with the World Health Organisation.

He outlined a “striking lack of global leadership” - particularly from the US - and the impact it has had on the ability of poorer countries to deal with the pandemic.

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