The British Business Bank has committed £180m to six venture capital and growth equity funds that have collectively raised more than £1bn to support the UK AI sector.
The six funds have collectively raised more than £1bn, intended to increase the availability of capital for technology companies and help UK businesses scale domestically.
The largest commitment is £55m to Intrepid Growth Partners Fund I, a specialist growth fund focused on artificial intelligence. Other investments include £35m for Crane III, which backs founders from inception to seed, and £20m for Connect V, which focuses on pre-seed businesses working across AI, hardware and real-world automation.
The bank has also committed £22m to the Entrepreneurs First’s Early Stages Fund, £26m to Headline EU VIII and £22m to Evantic Fund I, which invests in AI businesses at the growth stage.
The commitments span different stages of the investment lifecycle, providing capital for businesses developing foundational models as well as companies seeking to scale internationally.
Leandros Kalisperas, chief investment officer of the 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 across the investment lifecycle, helping companies to access greater capital domestically and allowing the UK to capture more of the economic value of its innovation.”
Jonathan Reynolds, business secretary, 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 that there are funding opportunities for AI entrepreneurs which match that potential.
“This £180m investment from the British Business Bank will help to build the next generation of safe, secure, homegrown companies, ensuring we are AI makers, not AI takers.""
