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Outward VC raises £51m in first close of Fund II to help early-stage founders breakthrough

Press release 10 September 2024

London-based investment firm Outward VC has announced the first closing at £51m 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, which has a strong track record in backing emerging, UK-based Venture Capital fund managers. A wide range of private investors are also participating in the fund.

With this new fund, Outward will be continuing its mission to help Founders breakthrough 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).

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. Devin Kohli Co-Founder, Outward VC
We help early-stage start-ups breakthrough by leading their first institutional funding round. In our first fund, after we deployed £20m into early-stage funding rounds, our portfolio companies went on to secure over £570m of follow-on equity funding within three years. Kevin Chong Co-Founder, Outward VC
Outward’s involvement in Curve has been significant and disproportionate to their shareholding in the company, and their network has been invaluable in navigating some of the most challenging periods in Curve’s journey. Shachar Bialick Founder and CEO, Curve
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. Ken Cooper Managing Director, Venture Solutions, British Business Bank
It is great to see Outward VC launch this new fund. 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. Michael Mainelli Lord Mayor of London
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. Janine Hirt CEO, Innovate Finance.

Further Information

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Notes to editors

About Outward VC

Outward VC is a London-headquartered early-stage venture capital fund on a mission to help Founders breakthrough. Since launching in 2019, Outward has backed over 20 companies solving the most important problems at the intersection of financial services and society, including Curve, Bud, Vauban (exited to Carta Inc) and Peppy. Outward partners with Founders at the most challenging stage in the scale-up journey by leading the first institutional funding round. Post investment, Outward works as a collective to support founders, with a significant portion of the fund allocated for follow-on investments.

About the British Business Bank

The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.

The British Business Bank’s core programmes support over £17.4bn 1  of finance to almost 64,000 2  smaller businesses.

As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.

The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4bn in finance to 1.67m businesses. These schemes are now closed to new applications.

British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. Wholly owned by HM government, the Bank and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for the group can be found on the British Business Bank website.

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