British Business Bank backs deeptech with £50M
The British Business Bank has committed up to £50 million to IQ Capital’s (IQC) Fund V. The Bank has made cornerstone commitments to all seven of IQC’s funds, the first of which was made to Fund I in 2006.
Founded in 2005, IQC is a UK-based early-stage deeptech venture capital firm based in London and Cambridge and supports companies from pre-seed through to the growth stages and has a track record of supporting over 250 deeptech founders.
The firm is built on the conviction that frontier technology will underpin the next generation of globally significant companies. IQC backs ambitious deeptech founders and supports them, with both capital and insights, at every stage on the journey from seed to scaleup and exit.
The British Business Bank is the largest investor in UK venture and venture growth capital funds. By making cornerstone commitments, the Bank helps funds achieve a first close and provides a strong signal of confidence that helps to mobilise additional private sector capital.
The British Business Bank has a long-standing relationship with IQC, having made cornerstone commitments to its five flagship funds and its two growth strategy funds. In addition, the Bank has supported IQC by co-investing into four deeptech companies from its portfolio: Thought Machine, Paragraf, CyberSmart, and Cambridge GaN Devices.
IQC’s Fund V will continue its early-stage venture strategy, focusing on five key deeptech thematic areas: (i) AI & Automation, (ii) Computing & Semiconductors, (iii) Health & Bio, (iv) Advanced Engineering & Energy, and (v) Security & Resilience.
Christine Hockley, Managing Director and Co-Head of Funds, British Business Bank, said: “We’re glad to expand our 20-year relationship with IQ Capital. The success of IQC perfectly demonstrates the long-term impact of the Bank’s fund commitments. We invested in their first fund, and the firm has steadily grown into the recognised and respected name it is today. This is why we consistently act as an anchor investor to UK venture capital firms, allowing new funds to get off the ground and helping to create a thriving venture landscape in the long run. It’s exciting to think that the first-time fund managers we back today could become the IQ Capitals of tomorrow.”
Chris Smart, Investment Director, Funds, British Business Bank, said: “IQ Capital has built a strong track record of identifying early-stage deeptech opportunities and supporting companies through critical stages of growth. Our continued support reflects both the strength of their investment approach and the role these companies play in building the UK’s technology market.”
Max Bautin, Managing Partner, IQ Capital, said: “The Bank has been a key partner in IQ Capital’s successful growth from a startup to £1Bn AUM, and we are grateful for their support over the past 20 years. The Bank’s investments into our funds have been transformative for IQ Capital and the hundreds of deeptech founders we’ve backed. This continued partnership enables us to support the next generation of ambitious founders as they build globally significant companies.”
For more startup news, check out the other articles on the website, and subscribe to the magazine for free. Listen to The Cereal Entrepreneur podcast for more interviews with entrepreneurs and big-hitters in the startup ecosystem.
