Outward VC has secured £51 million in the first close of its second fund. The London-based investment firm aims to support early-stage founders tackling societal challenges through financial services innovations. The fund received a cornerstone investment of £30 million from the British Business Bank through its Enterprise Capital Funds programme.
A wide range of private investors also contributed to the fund. Outward VC, established in 2019, targets new enterprises working on critical issues such as data privacy, healthcare, education, and artificial intelligence. The firm has been instrumental in nurturing early-stage companies, being one of the first investors in successful startups like Bud, Curve, Peppy Health, and Vauban.
The firm focuses on leading pre-Series A funding rounds, often investing up to £5 million, with a strategy that includes substantial follow-on investments. Co-Founder Devin Kohli emphasized Outward VC’s commitment to easing the early-stage journey for founders, often being their first contact point for addressing pivotal challenges.
“As a testament to our personalized approach, we are often the first call that our founders make when facing an important challenge,” said Kohli. Co-Founder Kevin Chong added, “In our first fund, after we deployed £20 million into early-stage funding rounds, our portfolio companies went on to secure over £570 million of follow-on equity funding within three years.”
Since its inception, Outward VC has supported over 20 companies that bridge the gap between financial services and societal needs. The new fund reaffirms their role in partnering with founders during the most challenging phases of their development, ensuring continued innovation and growth in the FinTech sector.
The British Business Bank’s Enterprise Capital Funds programme plays a key role in developing and maintaining effective venture capital provision in the UK. Ken Cooper, Managing Director of Venture Solutions at British Business Bank, said, “Our commitment to Outward VC builds on that success and will help early-stage founders across the UK to build their businesses.”
The launch of Outward VC’s new fund has been praised by industry leaders. Lord Mayor of London, Michael Mainelli, said, “Start-ups are essential to economic growth and offer an attractive opportunity for investors.
Their funding is essential to ensure we continue to foster innovation of early-stage companies in such pivotal areas as climate, healthcare, education, and AI.”
Janine Hirt, CEO of Innovate Finance, welcomed the launch, stating, “FinTech has been a significant success story for the UK over the last 10 years, creating over 75,000 jobs, filling the gaps in SME lending, and driving financial inclusion and growth across the country. We welcome the launch of Outward VC’s fund providing needed capital to early-stage founders and contributing to the growth of the sector.”
The fund will start investing immediately, signifying a robust commitment to fostering innovation and supporting early-stage start-ups in pivotal sectors.
