British Business Bank backs £180m AI & deeptech funds

The British Business Bank has committed £180 million to six venture capital and growth equity funds focused on AI and deeptech. Together, the funds have raised more than £1 billion.

The investments are intended to expand the supply of capital for UK technology companies, from pre-seed through to Series B and later growth rounds. The six commitments cover funds investing in foundational technologies, AI infrastructure, hardware, automation and growth-stage AI businesses.

The largest single allocation is £55 million to Intrepid Growth Partners Fund I, a specialist AI growth investor with an inaugural $525 million fund. The Bank also committed £35 million to Crane III, £20 million to Connect V, £22 million to Entrepreneur First's Early Stage Fund, £26 million to Headline EU VIII and £22 million to Evantic Fund I.

The vehicles span a range of investment stages. Connect V focuses on pre-seed technical founders in AI, hardware and automation, while Crane III backs companies from inception through seed. Entrepreneur First's fund will invest in businesses emerging from its platform at seed, Series A and Series B, and Headline EU VIII will target seed and Series A companies across Europe, with an emphasis on AI.

The latest commitments form part of the Bank's wider effort to deepen domestic funding for technology companies, in a market where UK start-ups have often struggled to secure larger later-stage rounds. It has now backed more than 150 UK venture capital funds, making it one of the market's most active investors.

The announcement follows a separate direct investment by the Bank in Salience Labs, an Oxford University spinout developing optical switching technology for AI data centres. That £10 million deal sits alongside recent direct investments in Wayve, Kraken Technologies, PhysicsX, PolyAI and Ineffable Intelligence.

Officials have linked the latest fund commitments to the government's industrial strategy, which identifies digital and technologies as a key growth sector. The Bank has also been trying to attract more institutional money into venture capital through VentureLink, an online portal that gives pension funds and other investors visibility into Bank-backed funds seeking additional limited partner investment.

VentureLink currently lists 18 funds open to further backing. The initiative is designed to help institutional investors assess the UK venture market and identify opportunities in an asset class that has historically attracted less domestic pension capital than in the United States.

Leandros Kalisperas, Chief Investment Officer at British Business Bank, said: "The UK has no shortage of ideas or talent. The problem is that our funding landscape does not currently match our technical excellence. This is what the Bank is changing. These commitments are part of our strategy to create deeper pools of funding at all stages of growth, helping companies to access greater capital domestically and allowing the UK to capture more of the economic value of its innovation."

The government has placed increasing emphasis on building domestic AI companies as international competition for talent, infrastructure and capital intensifies. Business Secretary Jonathan Reynolds said: "AI is going to be a transformative technology for our society and for our economy, which is why it is vital that the UK has its own sovereign capabilities. We have exceptional talent and world-class research capability; now we are working to make sure there are funding opportunities for AI entrepreneurs that match that potential. This £180 million investment from the British Business Bank will help build the next generation of safe, secure, homegrown companies, ensuring we are AI makers, not AI takers."

The selected funds also highlighted the role of public backing in attracting and scaling specialist investors. Matt Miller, Founder and Managing Partner at Evantic Capital, said: "We chose to build Evantic from London to be a bridge between Silicon Valley and the UK: helping non-UK companies invest and build here, and giving our UK companies a Silicon Valley network to help them win globally. We have already invested or committed over £150 million in UK businesses. Nine of our non-UK portfolio companies have opened London offices here. The British Business Bank understands growth-stage risk as we do and is committed to a stronger UK. We are grateful to have them as a partner. As the UK succeeds, we all succeed."

"Building the UK's AI ecosystem requires more capital, but companies also need the right investors at each stage of their development. The commitments announced today back specialist investors that will help AI founders build companies from their earliest stages through to global scale," said Robert Greenwood, Senior Director, Funds, at British Business Bank.

Entrepreneur First, which has worked with the Bank since 2016, said the relationship had extended beyond fund backing into direct support for portfolio companies. Carl Bishop, Partner and Head of Funds at Entrepreneur First, said: "Our relationship with the British Business Bank dates back to 2016, when it anchored EF's first institutional fund. The Bank has been an invaluable partner as we have scaled, providing sage advice along the way. It has also backed many of our companies, including PolyAI, Accurx and Hadean, with direct investments. We are delighted to continue our long-standing relationship through this fund, which will help maintain the UK's position as a global hub for AI talent and innovation as the importance and capabilities of this technology continue to grow quickly."

Mark Machin, Co-founder and Managing Partner at Intrepid Growth Partners, said: "The UK has an exceptional base of AI research, engineering talent and ambitious founders, but ensuring those companies can scale into global leaders requires deeper and more focused pools of long-term growth capital. The British Business Bank has been hugely impactful in strengthening that funding environment and helping more high-potential UK technology companies build and grow from here. We are delighted to have the Bank's backing to invest in the next generation of AI companies emerging from the UK."