Archive — US — techcrunch
Key Cambridge, UK VC launches $126M fund to stem later stage flight
Cambridge Innovation Capital has launched a £100 million ($126 million) 'Opportunity Fund' to address the lack of growth funding for later-stage startups in the UK, particularly in deep tech and life sciences. Backed by Aviva Investors and British Patient Capital, the fund aims to stem the flight of companies to the US by providing up to £20 million per investment and fostering development in the Cambridge ecosystem.
Key points
- CIC launches a £100 million fund for later-stage startups in the UK.
- The fund targets deep tech and life sciences sectors, addressing a significant funding gap.
- CIC has previously focused on early-stage investments; this fund allows for growth-stage funding.
- Funds are anchored by Aviva Investors and British Patient Capital.
- CIC already made two investments in established companies: Pragmatic Semiconductor and Riverlane.
- The UK government aims to revitalize tech ecosystems to prevent startups from relocating to the US.
- CIC's history includes successful exits from companies like Gyroscope Therapeutics and Abcam.
Why it matters
- The UK startup ecosystem has been historically underfunded in later-stage investments compared to the US.
- The launch of this fund aligns with the UK government's recent 'AI Action Plan' to boost economic growth through technology.
- The initiative supports the broader goal of creating a 'Silicon Valley' effect in the UK, particularly around Oxford and Cambridge.
The establishment of the 'Opportunity Fund' by Cambridge Innovation Capital marks a crucial step in overcoming the UK’s funding gap for later-stage startups, supporting innovation and economic growth in high-tech sectors while helping retain talent and companies within the region.