Early-stage venture capital firm supports diverse entrepreneurs with £84m funding

Ada Ventures, the London based early-stage venture capital firm that invests in entrepreneurs with “breakthrough ideas’’ has successfully reached a £36m first close of its second fund.

The firm’s fast second fund is testament to its LP’s belief in Ada’s unique scout network that uncovers the “hidden talent that will build the next generation of global companies”.

Ada Ventures’ successful Fund II fundraise is a reflection of strong performance in Fund I. Overall, Ada’s Fund I has invested in 28 companies, including Huboo, Organise, MOONHUB, SideQuest and Spill. Huboo in particular has grown to scale at “impressive speed’’, most recently raising a £60m Series B investment.

Ada’s Fund I portfolio has raised an aggregate of £100m in additional investment, from firms including Mubadala, GV and Index Ventures. Furthermore, Ada’s Fund I is amongst the “most diverse” portfolio of any fund in Europe, with approximately 55 per cent female founders and 30 per cent ethnic minority founders.

Ada Ventures Fund II will focus on funding early-stage entrepreneurs who are “solving some of society’s biggest problems”, with particular focus on the climate, healthcare and ageing, and economic empowerment.

Check Warner, founding Partner at Ada Ventures, commented: “Reaching this milestone of a second fund, backed by some of the biggest names in global venture and now having £84m under management follows on from the success of our first fund.

“Investors have seen how we source deals and how we find breakthrough companies making a positive societal impact. They can see our approach works. Not only have we opened opportunities for extraordinary founders, but we have also shown that a more diverse deal flow leads to exceptional returns.”

The investors in Ada Venture Fund II include: a cornerstone commitment from the British Business Bank through its Enterprise Capital Funds programme, Plexo Capital, University of Edinburgh, and a raft of entrepreneurs and investors including Taavet+Sten and the Supercell co-founders.

Established in 2006, the British Business Bank’s Enterprise Capital Funds programme aims to increase the supply of equity capital to high-potential, early-stage UK companies by supporting new and emerging VC fund managers who target the early stage equity gap.

Ada Ventures has been an innovator in how it sources deals through its scout network. There are 100 Ada Scouts, most of which are active within under-represented communities, who are sourcing opportunities and identifying visionary founders that need access to capital.

By Matthew Neville – Correspondent, Bdaily

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