Investing in the Future: 8 early-stage tech investment funds in the UK
Every week, we eagerly share funding news from both UK-based and international tech companies, celebrating their achievements in expanding their missions and highlighting the impressive amounts they raise. Just this week, we covered funding announcements from tech companies such as Nothing, Versori, Algorithmiq, and Upfront Diagnostics, with the total amount raised surpassing £100 million. These figures not only demonstrate the energy of the tech sector but also signify the presence of promising investment opportunities that can bring tomorrow's solutions to life.
So, why aren’t we seeing more pre-seed and seed tech investments coming out of the UK?
Well, the answer to this question is complex and multi-layered, deserving of its own in-depth article. For now, we can attribute this phenomenon to lack of knowledge and access rather than a scarcity of financial resources.
Hailed the tech investment capital of Europe, London has attracted a staggering $19.8 billion in venture capital funding in 2022 alone, solidifying its position as the third-largest recipient of tech investment globally, after China and America. The UK government, acknowledging the importance of fostering funding opportunities, is taking steps to facilitate easier access to public funding, as Prime Minister Rishi Sunak states, "We're overhauling our listing rules to make it easier for companies to raise public funding..."
Emerging from the humble kitchen table or the dynamic innovation hubs scattered across the UK, venture capitalists and angel investors have wholeheartedly recognised the nation's immense potential in spearheading advancements in the tech sector. Whether you are seeking funding or planning for future rounds, let’s unravel the tapestry of pre-seed and seed investment funds in the UK, showcasing the backers who are actively shaping the future of innovation and entrepreneurship.
But, first let’s define pre-seed investment:
Pre-seed investment is the initial stage of funding that occurs even before the seed funding round. It is the earliest form of financing that a startup can receive. Pre-seed funding is typically obtained during the ideation or concept development phase, when the startup is still in its infancy and lacks a fully developed product or a significant user base.
And seed investment:
Seed investment is the initial capital investment given to early-stage startups or entrepreneurs to fuel the launch of their business ideas or prototypes. It’s typically the first significant investment received by a startup and is aimed at supporting activities such as product development, market research, hiring key personnel, and initial marketing efforts.
Now, here are 8 active pre-seed and seed tech investment funds in the UK:
UK Innovation and Science Seed Fund
The UK Innovation and Science Seed Fund is a £40 million early-stage venture capital fund.
Concept Ventures is a dedicated pre-seed fund at £50M, backing founders laser-focused on reshaping how we work, play, and learn.
Ada Ventures invests at pre-seed and seed stage into 'overlooked founders' and ventures in underserved markets.
Fuel Ventures is an early-stage seed and seed growth stage EIS Fund that invests in startups.
Jenson Funding Partners invests in innovative and disruptive early stage businesses and supports them on their journey.
Ascension is an early-stage VC investing in the next generation of tech and impact founders
Octopus invests in 11 categories, including tech, with focus on providing venture capital investment for the people, ideas and industries that are changing the world for the better.
Antler is an early-stage investor with a growing portfolio of game-changing companies. They also provide a free online platform for new entrepreneurs.
Whether it’s seed or pre-seed investment, early-stage businesses need this launch pad to gain traction, build teams, refine their products, grow. As the tech startup ecosystem continues to evolve, early-stage funding will remain integral in supporting the next generation ofpioneers.
