HomeUKAda Ventures Closes £63M Second Fund

Ada Ventures Closes £63M Second Fund

Ada Ventures

Ada Ventures, a London, and Bristol, UK-based venture capital firm backing breakthrough ideas, closed a second fund, at GBP63M to back a diverse cohort of early-stage founders. 

Institutional investors backing Fund II included the British Business Bank, The University Of Edinburgh, Big Society Capital, Legal & General Capital, Atomico, the The Export and Investment Fund of Denmark (EIFO)and Molten Ventures. They have been joined by a number of founder investors, including Taavet Hinrikus, founder of Wise, and Illusian, family office founded by Ilkka Paananen, co-founder and CEO of Supercell.

With this new vehicle, the team will be making investments of between £250k and £1.5m in pre-seed and seed stage startups, with a significant amount allocated for follow-ons. With 12 investments already made from the second fund, the team plans to make between 10 and 12 investments per year in companies building breakthrough ideas across climate equity, economic empowerment and healthy ageing.

The fund has developed and now pioneers an ‘Inclusive Alpha®’ approach to its investment decisions. The investment strategy centres on the ability to beat the market using funds derived from an inclusive infrastructure and investing approach. This includes providing access to mental health support for founders and a commitment to supporting parents in their portfolio with the cost of childcare, an initiative which, since launching in October, has already been embraced by nearly 15% of the firm’s portfolio companies. 

Launched in 2019 by Check Warner, and Matt Penneycard, Ada Ventures has backed a range of successful companies including Huboo, Boundless, Bubble SideQuest, Spill, Materials Nexus, Greenworkx, Micrographia, Gizmo, and Tooth Fairy. Portfolio companies received co-investment and follow-on funding from leading firms including GV, NFX, DCVC and Index Ventures.

The firm has also developed an approach to sourcing deals through its Scout and Angel network. The Ada Scout program comprises nearly 100 scouts across the UK. This includes a 20-strong cohort of “Ada Angels” who each have access to an investment pot of up to £50,000. 30% of investments from Fund I and Fund II to date have been sourced through the Ada Angels or Ada Scout network. Following the success of these programs, the team will be helping to launch their model in new markets across Europe in the coming months.

VCWire

12/03/2024