Investment

London-based investment firm Outward VC has announced the first closing at £51 million of its Fund II.

The fund has received a cornerstone investment of £30m from the British Business Bank, which is deploying capital through its Enterprise Capital Funds programme. 

A wide range of private investors are also participating in the fund, which will see Outward help founders break through during the early stages of their businesses. The fund will commence investing immediately.

Outward VC was established in 2019 to focus on early-stage founders operating at the intersection of financial services with global challenges such as data privacy, healthcare, pensions, education and artificial intelligence. 

It was amongst the earliest investors in Bud (raised an $80m Series B), Curve (raised a £133m Series C), Peppy Health (secured a $45m Series B), and Vauban (exited to Carta).

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As with its first fund, Outward VC will be leading pre-Series A funding rounds of up to £5m, with a significant portion of the fund allocated for follow-on investments.

“Starting out as a founder is one of the toughest challenges out there, especially at the early stage. Our new fund continues our mission to make the early-stage experience easier for Founders, starting with leading their first institutional funding round. As a testament to our personalised approach, we are often the first call that our Founders make when facing an important challenge,” said Devin Kohli, Outward VC co-founder.

Ken Cooper, managing director, venture solutions at the British Business Bank, added: “The British Business Bank’s 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. 

“The programme has backed 46 funds, representing more than £2bn of finance. Our commitment to Outward VC builds on that success and will help early-stage Founders across the UK to build their businesses.”

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