PhysicsX secures backing from British Business Bank as part of Series C funding round
The British Business Bank has invested $25m into PhysicsX, the physics AI company for industrials, as part of its Series C financing. The investment includes the fourth investment made by British Growth Partnership Fund I since its £200m first close.
The round, led by Temasek, includes an investment from M&G Investments, demonstrating how the British Growth Partnership’s co-investment model can bring additional pension fund capital into UK venture. Pension funds can increase exposure to fast-growing UK companies while businesses can tap into large pools of domestic institutional capital.
Founded and headquartered in the UK, PhysicsX is building the new simulation software stack for industrial engineering. Its AI-native platform enables organisations across aerospace & defence, semiconductors, data centres & energy production, automotive, and materials to design, manufacture, and operate next-generation hardware faster and more efficiently. In doing so, it strengthens the productivity and competitiveness of advanced industrial sectors that underpin the UK and global economy.
At the core of the platform are PhysicsX’s Large Physics Models – physics foundation models that predict the physical behaviour of complex systems in near-real time rather than the days or weeks often required by conventional numerical simulation. By embedding AI inference into traditional engineering workflows, the technology empowers industrials to accelerate development cycles, reduce costs, and unlock breakthrough asset performance, supporting the UK’s ambitions to remain a global leader in advanced engineering and manufacturing.
The financing comes amid rapid growth. PhysicsX has doubled year-over-year recognised revenue, tripled booked revenue, while more than doubling its customer count over the past year. The team has grown to more than 300 people, doubling in size in the last twelve months.
This round will accelerate the company’s global growth, the expansion of its platform capabilities, and frontier research, including the development of larger, more powerful pre-trained physics AI models.
Charlotte Lawrence, managing director and head of direct equity at the British Business Bank, said, “PhysicsX is redefining how complex products are designed and built. Their platform combines world-class engineering heritage with frontier AI capability to create a company that we believe can be a global leader. As their technology is adopted by the world’s top industrial companies, we are thrilled to back their continued expansion whilst also allowing UK pension owners to share in the success of a true global innovator.”
Ian Connatty, managing partner of the British Growth Partnership and deputy CIO of the British Business Bank, said, “The British Growth Partnership was created to connect pension funds with the UK’s fastest growing companies. This transaction shows that model in action, and that we have built a platform for domestic pension fund capital to flow into the UK’s technology leaders.”
Jacomo Corbo, co-founder & CEO of PhysicsX, said, “The opportunity to transform how humanity designs, builds, and operates the world’s most critical infrastructure is one of the defining technological opportunities of our time. PhysicsX exists to realise that opportunity. We are building frontier physics AI technology in Britain, scaling it globally, and helping the world’s leading industrial companies innovate faster and unlock a new era of productivity. As the UK seeks to strengthen its position in advanced manufacturing and industrial AI, we’re proud to be contributing to that ambition from our headquarters in London, with the British Business Bank as an investor and partner in that journey.”
Niranjan Sirdeshpande, head of Catalyst at M&G Investments, said, “PhysicsX is an excellent example of the type of high-growth, technology-led business that institutional investors want to back. M&G has supported the company’s growth both through Catalyst’s direct investment and through our backing of British Growth Partnership, helping to channel long-term pension fund capital into innovative UK businesses with significant global potential. This investment demonstrates how government and industry can work together to improve access to growth capital for UK businesses, supporting innovation, skilled jobs and economic growth, while delivering attractive long-term returns for savers.”
In addition to PhysicsX, British Growth Partnership Fund I has invested in Wayve, Elliptic, and Draig Therapeutics.