Specialist climate impact seed investors Elbow Beach has announced the first close of its second fund.
The targeted £80m Climate Impact Fund 2 has already secured commitments for £63m of capital, including up to £50m from the British Business Bank through its Enterprise Capital Funds programme.
With £40m of immediately deployable capital, the London-based firm has activated the fund which aims to back up to 36 early-stage British startups over the next 4 years, accelerating the scaleup, development and export potential of some of the nation’s best early-stage technologies.
The fund’s overarching objective is to back technologies that will make a meaningful impact by solving big problems, enabling industries to become more efficient and cost-effective while transitioning to low carbon operations.
Its strategy includes investment in automation and AI, carbon capture, electrification, and low-carbon materials.
“Elbow Beach’s new fund is targeting the intersection of efficiency gain and climate impact,” said Jon Pollock, Elbow Beach CEO and managing partner.
“Growth is what brings financial returns and impact together. The fund’s strategy is to help match technology against big customer problems and steer companies towards their end markets.
“We’re looking at investments including technology that halves energy use for household products like vacuums and dishwashers, and improves crop yields through robotics and AI.”
The firm has been supporting early-stage technology companies from pre-seed through to Series A and scaleup since 2021.
Its first £20m fund backed companies including Munro Vehicles, Anaphite and WASE.
Christine Hockley, managing director and co-head of funds at the British Business Bank, added: “We are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges.
“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.”
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