British Business Bank deploys £400m per year into UK scaleups via 10 first-time VC microfunds

The British Business Bank announced it will commit up to £90 million as a cornerstone investor in 10 first-time venture capital fund managers, marking the debut of its £400 million Investor Pathways Capital initiative. The initiative aims for £400m+ per year in direct investments across life sciences, deep tech, AI, fintech, and climate sectors. The 10 selected microfunds—including Evertrue Capital, Common Ventures, Openseed VC, The Tech Bros Fund, Almanac Ventures, Future Impact Ventures, Blue Lake VC, Firstdoor VC, Mustard Seed Fund, and Twin Track Ventures—will each receive cornerstone commitments ranging from £10m to £20m.

The cohort is notably diverse: 57% of General Partners are women and 43% are from ethnic minority backgrounds. Seven of the 10 funds are led by solo GPs; the rest by two- or three-partner teams. All 10 managers are first-time institutional fund leaders. The program follows a competitive selection from 151 applications. The Bank has already doubled its direct equity portfolio from 31 companies (March 2025) to 50+ in nine months, investing £600m total since October 2025 and targeting £400m+ annually going forward.

The timing reflects a UK strategy to address the funding gap for underrepresented founders and emerging managers. The program is structured in three pillars: backing diverse fund managers through the Enterprise Capital Funds programme, investing in microfunds, and backing partners who deploy smaller amounts to build track records. For architects and founders in the AI/deeptech space, the diversification of institutional capital sources materially changes the capital landscape in the UK.