Cambridge, UK VCs Launch Hefty $126 Million Fund to Propel Growth of Later-Stage Tech and Life Sciences Startups

The UK and Europe have often been perceived as being deficient in growth funding for later-stage startups, especially when compared to the expansive opportunities provided in the US. This reality backed by data from the European Investment Fund, which reveals the US hosts more than seven times the number of large-size VC funds than Europe.

The ‘Opportunity Fund’ is bolstered by contributions from Aviva Investors and British Patient Capital, and aims to foster the development of growth-stage deep tech and life sciences companies. Already, two investments have been made into Pragmatic Semiconductor, a large chip designer and manufacturer, and Riverlane, a quantum computing error correction company. The fund’s objective extends beyond mere capital injection; it seeks to address the long-standing funding gap prevalent in the UK startup scene. This financial void invariably leads to many promising enterprises seeking greener pastures overseas, usually in the US.

In an effort to reverse this trend and promote domestic growth, the UK government recently announced an ‘AI Action Plan.’ This plan encompasses a series of measures targeting economic expansion through the leverage of AI technologies. Part of this ambitious scheme involves transforming the technological landscape around Oxford and Cambridge universities into Europe’s Silicon Valley. Furthermore, the government plans to forge stronger links between London, Oxford, and Cambridge, colloquially known as the ‘Golden Triangle.’ This initiative, backed by a hefty £14 billion funding package, aims to provide these intellectual hotspots with improved transportation links and other resources.

Andrew Williamson, Managing Partner at CIC, disclosed to TechCrunch that while CIC has traditionally focused on early-stage companies, there was a growing pool of companies proving their technologies and emerging as lucrative investment prospects.