The British Business Bank has announced £180 million in commitments across six venture capital and growth equity funds, strengthening the United Kingdom's funding environment for artificial intelligence and deeptech companies. The capital will support founders from inception and Pre-Seed stages through Series B and beyond, while the six funds have collectively raised more than £1 billion. The announcement follows a separate £10 million direct investment in Salience Labs, an Oxford University spinout developing optical switching technology for AI data centers.
Addressing the Funding Gap
The commitments target a structural mismatch between the UK's technical strengths and the depth of domestic capital available to scaling companies. The Bank is the largest investor in UK venture capital funds, having backed more than 150 funds to date. These new allocations are intended to create deeper pools of funding at all stages of growth, helping companies access greater capital domestically.
Breakdown of Fund Commitments
The largest single commitment is £55 million to Intrepid Growth Partners Fund I, a specialist AI growth investor with a US$525 million inaugural fund. The Bank also allocated £35 million to Crane III, which backs founders globally from inception through Seed, and £20 million to Connect V, which invests at the intersection of AI, hardware, and real-world automation. A further £22 million went to Entrepreneur First's Early Stage Fund, supporting emerging leaders at Seed, Series A, and Series B.
The remaining commitments include £26 million to Headline EU VIII, a US$400 million fund backing Seed and Series A companies across Europe with a focus on AI, and £22 million to Evantic Fund I, which invests in growth stage AI companies. Evantic has already invested or committed over £150 million in UK businesses, with nine non-UK portfolio companies opening London offices. The fund commitments span foundational technology, applied solutions, and AI infrastructure.
Direct Investments and Market Building
Beyond its commitments through funds, the Bank is backing UK AI companies directly. Recent direct investments include Wayve, Kraken Technologies, PhysicsX, PolyAI, and Ineffable Intelligence. The Bank also launched VentureLink earlier this year, an online portal that provides pension funds and other institutional investors with direct sight of Bank-backed funds open to investment.
Government and Investor Commentary
Leandros Kalisperas, Chief Investment Officer of the British Business Bank, said the UK has no shortage of ideas or talent, but its funding landscape does not currently match its technical excellence. Business Secretary Jonathan Reynolds added that the investment will help build safe, secure, homegrown companies and ensure the UK is an AI maker, not an AI taker. Both leaders framed the commitments as part of a sovereign capability agenda.
Fund managers also welcomed the Bank's backing. Matt Miller, Founder and Managing Partner of Evantic Capital, said the firm chose to build from London as a bridge between Silicon Valley and the UK. Carl Bishop of Entrepreneur First noted that the relationship with the Bank dates back to 2016 and has supported companies such as PolyAI, Accurx, and Hadean.
By committing £180 million across six specialist funds with more than £1 billion in combined capital, the British Business Bank is seeking to deepen the UK venture market and retain more economic value from innovation. The initiative aligns with the Government's Modern Industrial Strategy, which identifies digital and technology as a growth-driving sector. It represents a coordinated effort to convert the country's research excellence into globally competitive AI and deeptech businesses.