The British Business Bank has made a £40m cornerstone commitment to Eka Ventures’ second fund, supporting a final close of £80m.
The Bank previously backed Eka Ventures’ first fund in 2021, which closed at £68m, and said the latest investment forms part of its Enterprise Capital Funds programme, which aims to increase the supply of equity capital to early-stage UK businesses.
Other investors in the fund include Better Society Capital, Guy’s & St Thomas’ Foundation, WRAP, Esmée Fairbairn Foundation and The Health Foundation.
Founded in 2018, Eka Ventures invests in early-stage businesses focused on sustainability, health and inclusion. Its portfolio includes companies such as Runna, Axle and Urban Jungle.
Fund II will target pre-seed and seed-stage UK businesses, with plans to invest in up to 30 companies across areas including healthcare, sustainable consumption and wellbeing.
The British Business Bank said the investment would support the development of early-stage companies with long-term growth potential, with the Enterprise Capital Funds programme having backed 54 funds to date.
Peter Kyle, Secretary of State for Business and Trade, said: “The UK has world-class talent building innovative businesses that make a big impact. This commitment to Eka Ventures will help them to fulfil their ambitions here in the UK – creating jobs, boosting productivity, and growing the economy.”
Mark Sims, managing director and head of development equity funds at the British Business Bank, said: “We’re pleased to back another fund by Eka Ventures with a cornerstone commitment.
“By making these types of commitments, we aim to crowd in additional capital to funds, ultimately unlocking more funding for early-stage companies tackling important issues.
“Eka’s Fund II will focus on measurable impact and commercial ambition; those founders building solutions that not only improve lives but ultimately benefit the economy long-term.”
Misodzi Mukungurutse, senior investment manager at the British Business Bank, said: “Eka Ventures is working with founders who are rethinking how we consume, stay healthy and build more inclusive systems – areas where early-stage capital can make a huge difference.
“Our most recent commitment will ensure that pre-seed and seed-stage UK businesses have the support they need to grow, create jobs, and build a more sustainable and purpose-driven economy.”
Camilla Dolan, co-founding partner at Eka Ventures, said: “Our philosophy from day one has been that investing in the right founders and giving them the autonomy to move fast, take risks and set audacious goals is what unlocks truly game changing outcomes, both commercially and societally.
“We believe the next generation of category defining companies will be built at the intersection of technology and science, reshaping systems across consumer health, wellbeing and sustainable consumption.
“With additional firepower, we’re excited to deepen our investment into ambitious founding teams as they build businesses that deliver both meaningful impact and enduring value.”
Source: The Intermediary
