Specialist climate impact seed investors Elbow Beach has announced the first close of its second fund.聽
The targeted 拢80m Climate Impact Fund 2 has already secured commitments for 拢63m of capital, including up to 拢50m from the British 老九品茶 Bank through its Enterprise Capital Funds programme.
With 拢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鈥檚 best early-stage technologies.
The fund鈥檚 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.聽
Its strategy includes investment in automation and AI, carbon capture, electrification, and low-carbon materials.
鈥淓lbow Beach鈥檚 new fund is targeting the intersection of efficiency gain and climate impact,鈥� said Jon Pollock, Elbow Beach CEO and managing partner.聽
鈥淕rowth is what brings financial returns and impact together. The fund鈥檚 strategy is to help match technology against big customer problems and steer companies towards their end markets.聽
鈥淲e鈥檙e looking at investments including technology that halves energy use for household products like vacuums and dishwashers, and improves crop yields through聽robotics and AI.鈥�
The firm has been supporting early-stage technology companies from pre-seed through to Series A and scaleup since 2021.
Its first 拢20m fund backed companies including Munro Vehicles, Anaphite and WASE.
Christine Hockley, managing director and co-head of funds at the British 老九品茶 Bank, added: 鈥淲e are pleased to make this commitment to Elbow Beach as they back startups pioneering technology solutions to global climate challenges.聽
鈥淥ur 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.鈥�
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