The British Business Bank has made a commitment of up to £35m to VC Episode 1’s Fund IV.
Episode 1 is an investor backing early stage companies primarily at the pre-seed and seed stages. It takes an algorithmic approach to finding and evaluating software-driven UK companies with a specific focus on AI, software infrastructure, deeptech and tech bio.
The VC’s strategy demonstrates alignment with the UK’s industrial strategy sectors, with a majority of the Fund III portfolio operating within five of the eight priority sectors – digital and technology, financial services, professional and business services, clean energy and life sciences.
Fund IV will continue to largely back businesses within these sectors.
“Our fund investments are designed to increase the availability of capital for innovative UK businesses, allowing them to start, scale and stay in the UK,” says Christine Hockley, managing director and co-head of funds at British Business Bank.
“By making a cornerstone commitment to Episode 1’s Fund IV, we are expanding the pool of capital available to support high growth, high return innovative businesses.”
The commitment follows the Bank’s previous investments into Episode 1’s 2014 Fund I, the 2018 Fund II and the 2022 Fund III.
