Elbow Beach, a seed investor focused on climate technology, has secured a significant commitment.
According to Finextra, the British Business Bank has pledged up to £50m to the firm’s Climate Impact Fund 2 through its Enterprise Capital Funds programme. This fund has already gathered £63m in capital commitments and boasts £40m of immediately deployable capital.
The funding will empower Elbow Beach to invest in up to 36 pioneering British startups over the next four years. These startups are at the forefront of developing technology solutions that address major industry challenges, particularly in enhancing efficiency and reducing carbon footprints.
Elbow Beach focuses on a broad spectrum of climate technologies. Its investment portfolio includes advancements in automation, AI, carbon capture, electrification, and low-carbon materials. The aim is to support early-stage companies, including university spinouts and recipients of Innovate UK grants, which are poised to scale up and explore international markets.
The British Business Bank, a major player in UK venture capital, sees its Enterprise Capital Funds programme as crucial to nurturing venture capital provision in the country. To date, the programme has supported 47 funds, channeling over £2.3bn into the venture capital ecosystem, specifically aiding fund managers who focus on startups with high growth potential.
Christine Hockley, managing director and co-head of Funds at the British Business Bank, commented on the initiative. “We are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges,” she said. “Our Enterprise Capital Funds programme is key in helping to develop and maintain effective venture capital provision in the UK, lowering the barriers to entry for emerging fund managers.”
Jon Pollock, CEO and managing partner of Elbow Beach, shared his vision for the impact of this funding. “Elbow Beach is on a mission to ensure Britain remains a global leader in climate technology innovation,” he noted. “We’re going to help support the next generation of founders who are driving real transformational change.”
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