British Business Bank invests £40m in Eka Ventures to fuel UK impact economy
The British Business Bank has made a cornerstone commitment of £40m to Eka Ventures’ Fund II, supporting a final close of £80m. The Bank previously supported Eka’s first fund in 2021, which closed at £68m.
The Bank is joined by other LPs in the fund, including Better Society Capital, Guy’s & St Thomas’ Foundation, WRAP, Esmée Fairbairn Foundation, and The Health Foundation.
Founded in 2018, Eka Ventures is a leading investor in early-stage businesses that are positively shaping the world, making it more sustainable, healthy and inclusive. Previous portfolio companies include health and fitness platform Runna (recently exited to Strava), household energy platform Axle and socially responsible insurance provider Urban Jungle.
Fund II will continue with investing in the early-stage impact economy, backing a new generation of UK-founded, pre-seed and seed stage companies creating positive system changes across healthcare, sustainable consumption, and improving wellbeing.
The British Business Bank’s commitment was made as part of the Bank’s Enterprise Capital Funds programme, which aims to increase the supply of equity capital to early-stage UK companies with long-term growth potential and lower barriers to entry for fund managers looking to operate in the VC market. The programme has backed 54 funds to date, representing over £2.7bn of finance.
As the largest investor in UK venture and venture growth capital funds, by providing cornerstone commitments, the British Business Bank enables a fund to achieve a first close and helps the fund to execute their planned strategy more effectively and often to a greater scale.
This latest fund raise brings Eka Ventures total assets under management to $200m, establishing it as the UK’s largest early-stage impact VC dedicated to health, wellbeing and sustainability.
Fund II will invest in up to 30 companies, with capital reserved for follow-ons, and the team has already started deploying from the Fund.
Peter Kyle, secretary of state for business and trade, said:“The UK has world‑class talent building innovative businesses that make a big impact. This commitment to Eka Ventures will help them to fulfil their ambitions here in the UK – creating jobs, boosting productivity, and growing the economy.”
Mark Sims, managing director – Head of Development Equity Funds, British Business Bank, said:“We’re pleased to back another fund by Eka Ventures with a cornerstone commitment. By making these types of commitments, we aim to crowd in additional capital to funds, ultimately unlocking more funding for early-stage companies tackling important issues. Eka’s Fund II will focus on measurable impact and commercial ambition; those founders building solutions that not only improve lives but ultimately benefit the economy long-term.”
Misodzi Mukungurutse, senior investment manager, British Business Bank, said: “Eka Ventures is working with founders who are rethinking how we consume, stay healthy and build more inclusive systems – areas where early‑stage capital can make a huge difference. Our most recent commitment will ensure that pre-seed and seed-stage UK businesses have the support they need to grow, create jobs, and build a more sustainable and purpose-driven economy.”
Camilla Dolan, co-founding partner at Eka Ventures said:“Our philosophy from day one has been that investing in the right founders and giving them the autonomy to move fast, take risks and set audacious goals is what unlocks truly game changing outcomes, both commercially and societally.
“We believe the next generation of category defining companies will be built at the intersection of technology and science, reshaping systems across consumer health, wellbeing and sustainable consumption. With additional firepower, we’re excited to deepen our investment into ambitious founding teams as they build businesses that deliver both meaningful impact and enduring value.”